Eurozone will collapse...

[Osem]

For most people it's nothing to do with hating Europe, it's about retaining control of our laws etc. and avoiding more tiers of government and bureaucracy. IMHO the EU nations could function better both individually and as a trading block if they weren't hampered by such things as a single interest rate determined by the ECB.

[Alan Fry]

The only solution is for the eurozone (and future members) to become the United States of Europe, with the UK Joining in the future

[denphone]

Originally Posted by Alan Fry

The only solution is for the eurozone (and future members) to become the United States of Europe, with the UK Joining in the future

But we are far better off out of the Eurozone in my mind.

[Kingofthedead4]

At the moment I don't think it matters if we were in the euro-zone or not. The bottom line is every government has been living beyond its means and this was bound to happen. It has not helped with the Banks been willing to lend so much money that most people and governments have been unable to pay it back. Now we are being forced to go cap in hand to places like china to prop us up which of course they will want relaxation of certain questions into there human rights question's. Basically no matter which country or political background you come from ALL politicians have caused this problem and are just bothered about keeping there own votes intact.

[Sirius]

Originally Posted by Alan Fry

The only solution is for the eurozone (and future members) to become the United States of Europe, with the UK Joining in the future

No its not, The only solution is that the Government grows a pair and gives us a referendum on IN or OUT of the EU. I would vote at this time OUT

[Osem]

Originally Posted by Kingofthedead4

At the moment I don't think it matters if we were in the euro-zone or not.

Yes our problems are largely self induced but if we were in the Eurozone, businesses and other borrowers would probably be suffering much higher interest rates than they currently are. Whilst that'd be good for savers in the short term it wouldn't be good for the housing market, business in general and UK PLC.

Our problems seem to be manageable in contrast to Europe. Investors seem quite confident in buying our debt, safe-haven is the word I see in the papers frequently. Also we don't have as much exposure to the countries currently in economic peril (although we may well be badly exposed to banks that are badly exposed) although that is more a quirk of fate from our banks here rather than our government.

What our government can take credit for is their economic policy seems to have been well received by 'the markets' which has helped drive the aforementioned confidence, along with the fact that a government department I had never heard of (debt management) seems to have been doing a good job and ensured our debt is repayable over a longer period. So credit to them as well. Although you have to wonder about a situation where multiple governments are at the mercy of the markets, to the extent where leaders resign in order to 'calm' them. They all a bunch of paranoid hyper, coffee drinking, idiots if you ask me.

[Chrysalis]

I think its naive to think the euro affects trading by 60% or at least the EU does, but I also think its naive to think that leaving the EU and having the euro scrapped will have no negative effect.

[Ignitionnet]

Dear oh dear.

[Kingofthedead4]

I read this on a joke website and I think it some's up the Bail out nicely.

It is a slow day in a little Greek village. The streets are deserted. Times are tough. Everybody is in debt, and everybody lives on credit.

A rich German tourist drives into the village and stops at the local hotel. He puts a £100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night.

The owner gives him some keys and, as soon as the visitor has walked upstairs, the hotelier grabs the £100 note and runs next door to pay his debt to the butcher.

The butcher takes the £100 note and runs down the street to repay his debt to the pig farmer.

The pig farmer takes the £100 note and heads off to pay his bill at the supplier of feed and fuel.

The guy at the Farmers' Co-op takes the £100 note and runs to pay his drinks bill at the taverna.

The publican slips the money along to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him "services" on credit.

The hooker then rushes to the hotel and pays off her room bill to the hotel owner with the £100 note.

The hotel proprietor then places the £100 note back on the counter so the rich traveller will not suspect anything.

The traveller comes down the stairs, picks up the £100 note, states that the rooms are not satisfactory, pockets the money, and leaves town.

No one produced anything.

No one earned anything.

However, the whole village is now out of debt and looking to the future with a lot more optimism.

And that, Ladies and Gentlemen, is how the bailout package works!!

[Osem]

German Chancellor Angela Merkel has said Europe is working towards setting up a "fiscal union", in a bid to resolve the eurozone's debt crisis.

She told the Bundestag that a new EU treaty was needed to set up such a union and impose financial discipline.

http://www.bbc.co.uk/news/world-europe-15997784

The Germans trying to impose financial discipline? That'll go down well I'm sure. I wonder what they'll do if the other states don't want their financial discipline...

[Alan Fry]

Originally Posted by Osem

http://www.bbc.co.uk/news/world-europe-15997784

The Germans trying to impose financial discipline? That'll go down well I'm sure. I wonder what they'll do if the other states don't want their financial discipline...

Cut of credit to them maybe?

If you want the cash you have to take the strings attached. Trying getting a loan off your bank if they are not convinced you'll be able to pay it back.

Originally Posted by Osem

http://www.bbc.co.uk/news/world-europe-15997784

The Germans trying to impose financial discipline? That'll go down well I'm sure. I wonder what they'll do if the other states don't want their financial discipline...

This is the only way a single currency can work. It's how it works in the USA; some states are richer, some are poorer, and they have their own limited ability to set and collect local taxes, but there are rules and fiscal transfers to keep a unified US economy from collapsing.

The logic is inescapable - they either abandon the Euro, or watch it collapse, or else put in place the measures required to operate it properly.

Just be thankful Bliar never got his way or else we'd be getting sucked into this now too.

[Alan Fry]

Originally Posted by Chris

This is the only way a single currency can work. It's how it works in the USA; some states are richer, some are poorer, and they have their own limited ability to set and collect local taxes, but there are rules and fiscal transfers to keep a unified US economy from collapsing.

The logic is inescapable - they either abandon the Euro, or watch it collapse, or else put in place the measures required to operate it properly.

Just be thankful Bliar never got his way or else we'd be getting sucked into this now too.

Well said!