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This is not entirely true. The Netherlands, Austria, Luxembourg, Belgium and France for example fare just fine with the Euro. The problems you mentioned (and s
by BjoernKW 10y ago
This is not entirely true. The Netherlands, Austria, Luxembourg, Belgium and France for example fare just fine with the Euro.
The problems you mentioned (and some non-Euro countries being better off) are caused by structural problems in those countries, which are only tangentially related to the common currency. From an economic point of view those countries probably shouldn't have adopted the Euro so quickly in the first place but were allowed to do so nonetheless for political reasons.
- RobertoG 10y agoIt's difficult fix "structural problems" when the monetary policy is decided by others, and not following your interest. Whoever thinks the Euro is a success has not been paying attention and probably don't understand how monetary policies (and money) works. The Euro-area countries has been forced to follow procyclical policies, in a time when govern spending was necessary.
- informatimago 10y agoWe don't fare just fine with the Euro. By having fixed exchange rates between countries, the only remaining economic variable that can be adjusted, is employment. (It doesn't matter if it's public or private employment). This is why the EU tells France and other countries to reduce the number of public employees, and why France has been losing one 1000-employee enterprise every day since the introduction of the Euro. And the countries you listed are not the only ones in the Euro, think about how Spain, Portugal, Italy and Greece are faring with the Euro! It's worse than a war!
- kpil 10y agoFrance is a bank crisis waiting to happen though...