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The EU will fall apart, it's only a matter of time. The Euro as a currency is not sustainable and the moment a net paying country moves out of the Euro, the EU
by wsc981 10y ago
The EU will fall apart, it's only a matter of time. The Euro as a currency is not sustainable and the moment a net paying country moves out of the Euro, the EU will disintegrate for sure.
At the moment the Euro is just a mechanism to transfer wealth from the northern countries to the southern countries and to make exports easier for Germany. Greece and Italy would be able to import much less goods from Germany if they had their own weak currencies, so would be bad for German exports, but would allow Greece and Italy to recover their economies by devaluing their currencies which would result in decreasing imports, increasing exports.
In the current situation a country like Greece will never recover and Northern European countries will pay perpetually. The same stuff could happen with Italy, Spain, etc...
- quonn 10y agoThe Euro is not the same as the EU. > mechanism to transfer wealth from the northern countries to the southern countries and to make exports easier for Germany I agree that it works very well for Germany. This, by the way, also implies that the transfer of wealth is not a problem. It is economically reasonable for Germany to pay and the Greek people, for instance, have clearly stated that they want to stay in the Eurozone. Additionally, the Euro can be fixed, it is just currently not politically possible to take the required actions, because the current state of affairs is "good enough". This will change if the Euro is seriously threatened.