Whilst I'm glad we didn't join, if the Eurozone goes tits up we're in deep shit anyway. Our biggest trading partner. Our banks have big Eurozone debts. Doesn't bear thinking about. Hopefully Greece will exit the Euro in a structured way. Real worry is no-one knows what the knock-on effects will be. People talk glibly about Argentina's sovereign debt default in 2002, and how their economy is now doing reasonably well. Argentina wasn't part of a currency union, and had plentiful natural resources ro export on the back of a devalued currency. Greece has got....olive oil.
Ze germans dont want Greece etc to leave. If they do then the Euro will eventually be just Germany, France and its chums and would soar in value just like the Swiss franc. Good luck trying to peddle Fridges, power tools and cars to the rest of the world then. German workers are well aware their their export boom is only possible because the Euro is rigged to make their exports competitive.
Greece should have been structured out of the Euro last September rather than letting it drag on as it has done. Markets are all over the place because of it.
Greece may have some Olive Oil, but they don't even make Greek Yoghurt believe it or not, most of it is made in Germany these days. That shows how far they have come away from what they should be doing. It's a mess alright, and needs to be dealt with quickly and decisively and should have been addressed before now.
On the plus point, if you are off there on your holidays you should get some good value for money!
As inhabitant of a Euro-country (Netherlands) I can say that we'd be screwed either way (Euro's or Guilders) if the Euro is to crash and burn. The vast majority of Dutch exports goes to Euro-countries, so the our export products would become very expensive for our 'customers'. If the Euro drops in relation to the British Pound (Which it will), you're bound to take a hit from it as well and share in the mainland's misery.
All in all, I feel that the Greeks, Italians, Portuguese and Spanish should've managed their finances better in the past- but that's easy to say in hindsight. I'm not sure what the criteria were on which countries were let into the Euro, but they obviously were much too lenient. The problem now though is that it'll take a shitload of money to bail them out in this stage, but I'm fairly sure that it'll be even more expensive to let them take the fall, dragging the entire Euro with them. (Both for Euro countries as well as their main non-Euro trading partners, such as Great Britain).
All in all, I feel that the Greeks, Italians, Portuguese and Spanish should've managed their finances better in the past- but that's easy to say in hindsight.
Yes, but unlike Greece... Portugal is attempting to pay its debt.
Also unlike Greece, there are no riots and general chaos. You can still go and vacation, enjoy great food (that would cost three times more if served in Italy, France, Spain)...
Quote by AlpineAs inhabitant of a Euro-country (Netherlands) I can say that we'd be screwed either way (Euro's or Guilders) if the Euro is to crash and burn. The vast majority of Dutch exports goes to Euro-countries, so the our export products would become very expensive for our 'customers'. If the Euro drops in relation to the British Pound (Which it will), you're bound to take a hit from it as well and share in the mainland's misery.
All in all, I feel that the Greeks, Italians, Portuguese and Spanish should've managed their finances better in the past- but that's easy to say in hindsight. I'm not sure what the criteria were on which countries were let into the Euro, but they obviously were much too lenient. The problem now though is that it'll take a shitload of money to bail them out in this stage, but I'm fairly sure that it'll be even more expensive to let them take the fall, dragging the entire Euro with them. (Both for Euro countries as well as their main non-Euro trading partners, such as Great Britain).
The whole purpose of the Euro was to allow more developed nations like Germany and France to export. Had weaker nations like Greece not been allowed entry the whole project would have been redundant. I think the biggest problem has been the years of Europe wide Reagenomics and countries gambling with their citizens' future for a fast buck, to pin it on the weaker nations in just daft IMO.
The Euro is fucked,Monopoly money is worth more.Thing is even though we do not have the euro we are helping to bail out the ones that are in the shit,Republic Of Ireland,Spain,Portugal,Greece. The Germans are already printing Deutschmarks again in preperation for the demise of the euro.I for one am very glad we do not have the euro,the country is in enough shit as it is if we had the euro we would be in the same boat as the countries i have mentioned.
Quote by mkj1972The Euro is fucked,Monopoly money is worth more.Thing is even though we do not have the euro we are helping to bail out the ones that are in the shit,Republic Of Ireland,Spain,Portugal,Greece. The Germans are already printing Deutschmarks again in preperation for the demise of the euro.I for one am very glad we do not have the euro,the country is in enough shit as it is if we had the euro we would be in the same boat as the countries i have mentioned.
Hope the Euro does dissolve. Good to see them all go back to there own currency. Cheaper threads and shoes from Italia and cheaper holidays in Cyprus, Greece , Spain etc
Fookin Jermans going for world domination again.
Well, I tell them there's no problem Only solutions
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Thu May 17, 2012 7:11 pm
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