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The man selling Europe's bonds slams Stiglitz, Krugman and US income gains

The euro is a success: ESM's Klaus Regling

Prominent economists who predict the fall of the euro are not concentrating on the facts, according to Klaus Regling, managing director of the European Stability Mechanism, who told CNBC that the European Union and the single currency were a success.

"The crisis is behind us," he said on the sidelines of the annual meetings of the International Monetary Fund and the World Bank in Washington D.C. on Thursday.

The European Stability Mechanism, or ESM, is a crisis resolution mechanism set up for euro area countries and generates money by selling bonds in the global financial markets. Regling said that officials in the region had taken many steps to make the euro area function better and dismissed the views of economists such as Paul Krugman and Joseph Stiglitz.

Nobel prize–winning Stiglitz, who has written a book about his gloomy predictions, told CNBC in August that the structure of the euro zone had "doomed" the euro currency to "failure."

Krugman, meanwhile, has used his New York Times column on several occasions to voice his distaste for the currency, saying in July 2015 that "the euro has turned into a Roach Motel, a trap that's hard to escape."

However, Regling told CNBC that he had grown used to these sorts of predictions over the years but stressed that they had usually been proven wrong.

Klaus Regling, managing director of the European Stability Mechanism. 
Andrew Harrer | Bloomberg | Getty Images

"Some of the people who do it haven't really looked at the facts that we have really taken important measures to get out of the crisis," he said, after being directly asked about the opinions of the two U.S. economists.

"Markets, for instance, don't share that view. Otherwise we will see some reaction in the markets and I think that markets are right not to share their view."

Regling also explained that Europe had some favorable economic fundamentals that proved it was doing as well, if not better, than the U.S.

The region is still dealing with fragile growth and stubbornly high unemployment, and is being assisted by aggressive monetary policy from the European Central Bank. However, Regling said that GDP (gross domestic product) per capita was usually the same as in the U.S., and the region had a "much better income" distribution.

"The last 15 years, 80 percent of European households have seen a real income gain. In the U.S., we know it's only 10 to 20 percent. A big difference in favor of Europe," he added.

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