The Euro and the future of the EU

Discussion in 'Current Affairs, News and Analysis' started by muhandis89, Apr 29, 2010.

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  1. Good. I hope it dies some more.
  2. "Fears that Britain could become embroiled in Europe's deepening financial crisis intensified tonight after Spain had its debt downgraded, Portugal announced tougher austerity measures and Germany questioned whether beleaguered Greece should ever have been allowed to join monetary union."

    The Torygraph ?
    Nay The Guardian.

  3. Really only Germany itself could save Greece without visible problems to own economy. But Germany as a leading World exporter is interesting in low Euro/Dollar exchange rate.

    So I suspect that the decision (to save Greece) has been made and so called 'technical pause' serves to the mentioned purpose. I fancy that some business circles that are pretty well aware about the real situation are buying (without fuss) Greek bonds to make good profits.

    Personally I believe that the Greeks should be given a lesson not to spend more than earned.

    As for the EU and Euro then Greek poblem is not so severe to endanger their existence.
  4. I posted over a year ago that Chinese money changers (the illegal yet tolerated ones) were hanging on to North EU Euros and always offload the South EU Euros (for the concerned each note has a national identification code Germany x, Greece Y etc.).

    I believe that the Euro zone will break into at least two currencies the one with Germany in it being the pukka one and the other(s) the 'Latin Euro' being well you know.

    I have not yet met anyone in business who does not believe that this will eventually occur, without full political union the Euro is a contradiction whose time is up. And Union is just not going to happen, ever.
  5. Very interesting events unfolding.

    One of the main issues here is getting member goverments to cough up the needed bailout money in a timely manner. The difference between US and EU structures is clear in this case as in that in US the fedral goverment has ability use both taxxes and debt as needed on sole decsion of the fedral goverment. EU on the otherhand is forced to seek aproval from member goverments in order to raise needed funds.

    Given the geographic nature of problems the resistance from many member states publics to bailouts is understandable. But failure to act will lead to a spreading crisis in europe that will eventual engulf the whole of europe if it isnt contained effectively.

    The size of needed bailout also seems to growing rapidly as well both in regards to amount of money greece needs and potential amounts needed by others. As size of bailout needed increases rapidly in next few weeks the already high political resistance to bailouts will only increase. The only two viable choices at the moment seems to be ether europe funding a potential bailout in the 500-1000 billion euro range are splitting euro into two currencys with germany and many of northern european economys forming a new currency. While leaving existing euro to be devalued by southern european economys.
  6. I hope that this is the beginning of the end for the bloated monstrosity that is the EU. No doubt the current crisis will be seen by the pro EU/anto democracy lunatics as an excuse to demand full economic control of member states.

    To we Euro realists it just proves our point.. the EU can NEVER be a superstate, there are just too many conflicting interests.
  7. After Maastricht, Goldman Sachs valuated the Greek economy in the run up to joining the Euro and knowingly and deliberately inflated its value.
  8. If Merkel bails out Greece she will be committing political suicide at home.
  9. For as much as I have condemned the Euro in all it's forms.
    I do believe that one day Europe must United.
    Not now, 'They' whoever 'They' are got it wrong by trying to rush it.
    50 years or maybe in 30 or 80 years, when all the prospective Nations have had time to prepare their Folk and above all their Economy to a sort of Common standard.
    Every one knew Greece was cheating but 'They' wanted Greece in.
    However 'They' did not understand how much Greece had cheated.
    Now someone has to pay the price.
    The Greeks will not accepte that the good times are over, The fatted Calf was killed and consumed, now the price must be payed.

    And no matter who wins next Thursdays election in 4 years time UK's debt will have doubled and How will UK pay Labours Bill ?
  10. True but if she doesnt she will have to lead germany out of the euro.

    World financial markets simply wont allow southern europe to get away with defaulting on there debts. They also refuse to provide the refinancing of existing debt that is needed to avoid default. That just leaves germany to pick up the tab as the only option. If it wont bailout southern europe then it would be best for germany to simply leave euro and allow euro to better reflect the economic needs of southern europe.
  11. Still has to get past the Bundestag and the Bundesrat. The move to support Greece is almost as popular as a turd in a chip butty.
  12. Quite. And bailing out Greece doesn't change the fundamentals that make Portugal and Spain look wobbly. Spending that money on Greece simply leaves less in the kitty to bail out Spain when it comes under the microscope.

    How many of us on here complained that the EU was expanding too fast?

    Oh, and given the existing rights of work/movement inside the EU, what exactly is stopping the 12M greeks simply dispersing themselves amoungst other European countries to continue their benefits after their government financially implodes?
  13. so two separate currencies? northern (protestant) and a southern (catholic) euro eh?

    funny how history repeats itself.
  14. When the Italians used lira, they used to refer to it as "mille" because it was so inflated that it was counted in thousands. When the euro was introduced, everyone naturally referred to euros. However, I noticed about 3 years ago that some people were saying "mille" instead of "euro" again. I put it down to old habits, but maybe it was a subconscious prediction.