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Originally Posted by Kymmy
Show's how little you understand the issue..
If one country drops the euro then it'll strengthen the rest.. The "Next country" line was purely due to the continued recession and not the euro..
@Chris, You have to give them credit though that it lasted this long before one of them got into trouble.. There though always was going to be an issue with so many individual markets trying to link themselves to a single currency.. I would have thought that the simple fact that every country within europe will never give up their own governmental powers and totally default to a european central government for all aspects of rule would have meant that the euro could never be anything but an experiment..
I wonder if the european union will give a push to certain countries and force them to drop out and then at least the core countries from which the euro is stabilised will have a chance to continue??
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I find it difficult to give credit to people who experiment on such a scale as to put the economy of an entire country at risk ... at the end of the day, the federalist ideologues in Brussels aren't going to lose their plush offices and chauffeur-driven cars. The ordinary people of Greece, on the other hand, are now royally shafted whichever way the house of cards that is the Euro decides to fall.
The logical argument for tax and economic policy convergence within the Eurozone is of course irresistible. As I said earlier, the Dollar only works across the USA because there's a federal government sitting above the individual state governments, running a federal economic policy which includes massive transfers of wealth from the states that make money (like California) to those that don't (like Alaska).
I'm not sure, however, that even France or Germany are quite ready to embrace such a level of harmonization, which I think means either that a 12-member Euro is going to continue to lurch from one crisis to another, or else a smaller Eurozone will have to be created, comprised of those economies that genuinely can cope with it (i.e. only those that should have qualified to be in it in the first place).