Euro on verge of collapse

[-:Undertaker:-]

http://www.dailymail.co.uk/news/arti...n-bailout.html

http://news.bbc.co.uk/1/hi/world/europe/8508688.stm

Lord Mandelson sparked incredulity tonight by insisting that Britain should join the euro at a time when the single currency is embroiled in the worst crisis in its history. The Business Secretary played down turmoil in the eurozone by claiming that the euro had been a 'remarkable success' story and insisted that it was in Britain's long term interests to sign up in the future. But Lord Mandelson was accused of 'living in cloud cuckoo land' after EU leaders failed to quell the financial market panic over Greece's fiscal crisis.

Eurozone leaders pledged 'determined and co-ordinated' action to help Greece deal with its vast deficits, as they attempted to shore up the euro. But traders were alarmed at the lack of any detail surrounding the plan, prompting a sell-off late in the session. The euro slid as much as 1 per cent to $1.36 against the US dollar. It was little changed against the pound at 1.13 euros. Economist Richard McGuire of RBC Capital Markets said: ‘It’s more moral support, really, than any kind of detailed promise of aid, which I don’t think will wash with the markets for long.’

EU nations led by France and Germany met yesterday to discuss out a rescue plan for Greece during a crucial summit in Brussels. After the meetings EU President Herman Van Rompuy said eurozone members would take action ‘if needed to safeguard financial stability’. Any eventual plan is expected to involve a mixture of loans or guarantees from the richest eurozone nations, combined with technical support from the IMF and European Central Bank.

But no further details were forthcoming from Brussels, sending tremors through markets. Despite the turmoil, Lord Mandelson said the crisis had done nothing to dampen his enthusiasm for Britain eventually joining the single currency. He admitted that being outside the eurozone had given the UK more freedom to respond to the present downturn, but he insisted: 'I think in the longer term it would be in Britain's interests to be part of the eurozone.'

According to this post..

I read about the consequences of this a couple of weeks ago on the internet. Greece wants to reintroduce the Drachma, however to do so under EU rules, would mean Greece having to totally withdraw membership from the EU. Brussels doesn't want this as Spain, Italy and Ireland are also in dire financial straits and will follow in the same way as Greece, signalling an end to the EU. Also, even though Britain didn't sign up to the Euro zone, a little known condition in the Lisbon Treaty makes Britain financially liable to prop up members economies

The problem is that Greeks left-wing government has been spending what it can't afford, like all left wing governments including ours. Next up it appears Spain, Portugal and Ireland are all on the verge of their debt becoming a major issue which could spell the end of the European Monetary Union. As shown by this, you can't have a successful monetary union or a poilitical/social union that spans a continent because it simply does not work. The economies of Greece, Spain, Portugal and Ireland (PIGS) are far too poor to have the same currency as a country like Germany/France.

Gordon will most likely use some of our money to prop Greece up because he loves being in the spotlight, especially on Europe because like all other politcians who have done their country no good - they end up in the European Union on very generous wages.

Thoughts & are you glad Britain is not part of the Euro?

[Catzsy]

http://www.dailymail.co.uk/news/arti...n-bailout.html

http://news.bbc.co.uk/1/hi/world/europe/8508688.stm

According to this post..

The problem is that Greeks left-wing government has been spending what it can't afford, like all left wing governments including ours. Next up it appears Spain, Portugal and Ireland are all on the verge of their debt becoming a major issue which could spell the end of the European Monetary Union. As shown by this, you can't have a successful monetary union or a poilitical/social union that spans a continent because it simply does not work. The economies of Greece, Spain, Portugal and Ireland (PIGS) are far too poor to have the same currency as a country like Germany/France.

Gordon will most likely use some of our money to prop Greece up because he loves being in the spotlight, especially on Europe because like all other politcians who have done their country no good - they end up in the European Union on very generous wages.

Thoughts & are you glad Britain is not part of the Euro?

I heard today that GB said that he was not prepared to pay anything as we are not part of the Eurozone. However, there could be an update since then.
I am glad as Spain and a couple of others are also on the brink.

[Jordy]

Possibly an exaggeration, I don't think anything is on the verge of collapse at all yet and if you read about this anywhere other than the Daily Mail you'll notice that. The article's full of hyperbole.

While I think it's total nonsense it's on the verge of collapse, I completely agree that we shouldn't be part of the Euro and it is going through a rough patch and it's the main reason we shouldn't join it, it's far too dependant on other countries and means we would lack control.

[Cheryl]

I am very glad we didn't agree to join in the Euro, we are in a bad enough condition just being part of the EU, this is to do with the Euro users and not the European Union, or any other - non-affiliated country.

[-:Undertaker:-]

Possibly an exaggeration, I don't think anything is on the verge of collapse at all yet and if you read about this anywhere other than the Daily Mail you'll notice that. The article's full of hyperbole.

While I think it's total nonsense it's on the verge of collapse, I completely agree that we shouldn't be part of the Euro and it is going through a rough patch and it's the main reason we shouldn't join it, it's far too dependant on other countries and means we would lack control.

Greece, Portugal, Ireland and Spain are all on the verge of collapse with Cyprus also in trouble. Its not an exaggeration, if they fail and theres no bailout for them/speculation takes hold as it is doing now then the Euro is going to collapse. As you said, it depends far too much on other countries and at the moment, it doesn't seem as there is anyway out for the PIGS to cut their debt.

What left wing government do you know/have ever heard of that has successfully slashed its spending?

[hah]

why are we pigs?

[Special]

I'm going to Tenerife in 6 hours, can it please wait till then? (yn)

[ifuseekamy]

I mentioned this a while ago. I guess they were hoping the mess would clear itself up because it was never a big issue till now.

[-:Undertaker:-]

I'm going to Tenerife in 6 hours, can it please wait till then? (yn)

If you use Pound Sterling over there you might be able to get stuff quite cheap as usually when I go to Spain they are gagging for Sterling, with this crisis it'll probably be in even more demand. Have a nice time anyway.

I mentioned this a while ago. I guess they were hoping the mess would clear itself up because it was never a big issue till now.

Spot on, thats exactly what it does.

[Jordy]

Greece, Portugal, Ireland and Spain are all on the verge of collapse with Cyprus also in trouble. Its not an exaggeration, if they fail and theres no bailout for them/speculation takes hold as it is doing now then the Euro is going to collapse. As you said, it depends far too much on other countries and at the moment, it doesn't seem as there is anyway out for the PIGS to cut their debt.

What left wing government do you know/have ever heard of that has successfully slashed its spending?

Maybe if those countries did go down it would be in trouble but for now I really don't see it happening, it's not doing too well but it's no way on the verge of collapse. Bare in mind it has the enormous economies of France/Germany, you can't bring something like that down easily and it's not going to go down without a fight and huge losses either. I don't see it going anywhere in the next five years or so, it'll struggle on.