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I hope that we will see a different and more rational handling in italy's case. In fact we should allow countries to leave the EU if their economy is not strong
by arez 8y ago
I hope that we will see a different and more rational handling in italy's case. In fact we should allow countries to leave the EU if their economy is not strong enough. It just doesn't make sense for anyone to have the same currency. Right now, everyone treats the "dropping out of the EU zone" as a failure and a stepping stone into a complete EU collapse, but the EU shouldn't be a prison. Having the same currency and no option to devalue for a country leaves you strangled and tied to the big guys (Germany, France,...). Let italy, portugal, spain and finnland drop out if they want, let them devalue their currency and let them get back on their feet, otherwise we stumble deeper and deeper into uncharted dark territory.
Ofc it's not as easy as I'm stating it here, if they drop out of the EU, Germany and others would be in deep trouble due to the massive credits they gave everyone to make them stay and dependent
- mhneu 8y agoDrop out of the EU, or drop out of the euro? Half of the macro arguments are about the problems of currency union without fiscal policy union. Perhaps the pre-2015 UK position is a good intermediate drop-back step: no currency union, still many ties to EU and Brussels. (that said, the German wage deflation discussed in the post is an EU issue, not a euro issue.)
- Panoramix 8y agoI think you mean drop out of the Eurozone. Leaving the EU would be completely nonsensical.