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Not true at all. I am from Czech republic and we benefited massively from these contributions. If I compare for example general state of infrastructure it is mu

Not true at all. I am from Czech republic and we benefited massively from these contributions. If I compare for example general state of infrastructure it is much better than in UK where I currently reside. All the train stations were rebuilt using EU funds. Also not sure what you are talking about "This halfway step only serves the wealthy.", not not really. Look at quality of life and GDP rise in post soviet EU countries.

Despegar 7y ago
The Czech Republic isn't in the Eurozone and doesn't face the structural disadvantages that Greece or Portugal do.
- _delirium 7y ago
  The Czech Republic definitely shows one way to approach the EU: get the transfer payments from a political union and partial economic union (in trade policy, etc.), as well as remittances from emigrants employed elsewhere in the free-movement zone, but retain an independent floating currency and avoid monetary union. Greece would've been in a considerably different position if they had taken the Czech route and stayed out of the Euro. Arguably a better position, though that's not something all economists agree on. Certainly a different one, at any rate.
  - eru 7y ago
    See https://marketmonetarist.com/2015/07/14/the-euro-a-monetary-strangulation-mechanism/ https://marketmonetarist.com/2015/07/14/the-euro-a-monetary-... for the importance of a floating currency. (Or rather, the importance of not joining nor pegging to the Euro. Other currencies might not be as toxic?)
  - mcv 7y ago
    So the transfer payment are not part of the Eurozone, but part of the EU. That makes Eurozone membership a problem for weaker economies like Greece. On the other hand, Slowakia and Ireland are part of the Eurozone and are doing very well despite starting out poor. (Maybe Ireland doesn't fit here, because they've been doing very well since long before the Euro.)
- _visgean 7y ago
  Well you are talking about EU budget. If you look at https://en.wikipedia.org/wiki/Budget_of_the_European_Union#EU-27_contributions_(2007%E2%80%9313) https://en.wikipedia.org/wiki/Budget_of_the_European_Union#E... its clear that both Greece and Portugal receive higher contributions then Czech republic. Also I am not sure what structural disadvantages you are looking at. Look at Slovakia that is in Eurozone and benefited massively.
- phicoh 7y ago
  At the introduction of the Euro, many were quite concerned about Greece joining. The EU consists of independent, co-operating countries. This is quite different from the US. There is very little the EU can do without votes from the individual countries. So the assumption is that a country that joins the Euro has carefully evaluated the pros and cons. At the same time, the amount of subsidies a country receives is not dependant on that country being part of the Euro-zone or not. If you look at the Euro at the time of introduction, then there was every intent to make Euro as strong and stable as the Deutche Mark. Very much so against the wishes of France, who wanted a currency that was way more subject to political control. Of course, one incentive for countries to adopt the Euro was exactly was the article is about: a small currency stands no chance against investors speculating against it. Better hide in a big currency.
- zajio1am 7y ago
  Slovakia was in similar position to Czechia, but joined Eurozone in 2009. From that time, it has similar or better GDP growth than Czechia.

Despegar 7y ago

The Czech Republic isn't in the Eurozone and doesn't face the structural disadvantages that Greece or Portugal do.

_delirium 7y ago
The Czech Republic definitely shows one way to approach the EU: get the transfer payments from a political union and partial economic union (in trade policy, etc.), as well as remittances from emigrants employed elsewhere in the free-movement zone, but retain an independent floating currency and avoid monetary union. Greece would've been in a considerably different position if they had taken the Czech route and stayed out of the Euro. Arguably a better position, though that's not something all economists agree on. Certainly a different one, at any rate.
- eru 7y ago
  See https://marketmonetarist.com/2015/07/14/the-euro-a-monetary-strangulation-mechanism/ https://marketmonetarist.com/2015/07/14/the-euro-a-monetary-... for the importance of a floating currency. (Or rather, the importance of not joining nor pegging to the Euro. Other currencies might not be as toxic?)
- mcv 7y ago
  So the transfer payment are not part of the Eurozone, but part of the EU. That makes Eurozone membership a problem for weaker economies like Greece. On the other hand, Slowakia and Ireland are part of the Eurozone and are doing very well despite starting out poor. (Maybe Ireland doesn't fit here, because they've been doing very well since long before the Euro.)
_visgean 7y ago
Well you are talking about EU budget. If you look at https://en.wikipedia.org/wiki/Budget_of_the_European_Union#EU-27_contributions_(2007%E2%80%9313) https://en.wikipedia.org/wiki/Budget_of_the_European_Union#E... its clear that both Greece and Portugal receive higher contributions then Czech republic. Also I am not sure what structural disadvantages you are looking at. Look at Slovakia that is in Eurozone and benefited massively.
phicoh 7y ago
At the introduction of the Euro, many were quite concerned about Greece joining. The EU consists of independent, co-operating countries. This is quite different from the US. There is very little the EU can do without votes from the individual countries. So the assumption is that a country that joins the Euro has carefully evaluated the pros and cons. At the same time, the amount of subsidies a country receives is not dependant on that country being part of the Euro-zone or not. If you look at the Euro at the time of introduction, then there was every intent to make Euro as strong and stable as the Deutche Mark. Very much so against the wishes of France, who wanted a currency that was way more subject to political control. Of course, one incentive for countries to adopt the Euro was exactly was the article is about: a small currency stands no chance against investors speculating against it. Better hide in a big currency.
zajio1am 7y ago
Slovakia was in similar position to Czechia, but joined Eurozone in 2009. From that time, it has similar or better GDP growth than Czechia.