Collapse of the euro is inevitable: Bailing out the Greek economy futile, says FRENCH banking chie

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All Forums >> [Community Discussions] >> Dungeon of Political and Religious Discussion >> Collapse of the euro is inevitable: Bailing out the Greek economy futile, says FRENCH banking chie

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Collapse of the euro is inevitable: Bailing out the Gre... - 2/15/2010 9:24:24 AM

Brain

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This is unfortunate but the truth is some countries internal politics don’t lend themselves to developing sound economic policies. They just don’t have the capacity or political will and don’t understand as a group how to co-operate to thoughtfully and carefully plan long term economic policies. Some countries have the political system but several countries do not and it takes everyone pulling together to go in the same direction but some politicians and parties pursue their own selfish interest.

Collapse of the euro is 'inevitable': Bailing out the Greek economy futile, says FRENCH banking chief

Strategists at Paris-based Société Générale said that any bailout of the stricken Greek economy would only provide ‘sticking plasters’ to cover the deep-seated flaws in the Eurozone.

'If these differences are to be evened out, the EU would need a single budget and common taxes so it can redistribute resources.

Mr Edwards argued that Portugal, Ireland, Greece and Spain are too economically weak to withstand the rigours of eurozone membership.

Countries that are highly uncompetitive are normally able to slash interest rates and devalue their currencies to prop up their economies.

But this is not possible within the euro, given its one-size-fits-all economic governance.

The implication is that weak, peripheral eurozone members will have to suffer years of painful deflation and tumbling living standards, as well as draconian budget cuts, in order to adjust
Germany drags EU back towards recession

France provided a bright spot in the report, expanding by 0.6 per cent in the fourth quarter-But Italy, Spain and Greece all registered contractions in their gross domestic product.

Economist Martin van Vliet of ING Bank said: 'The paltry pace of fourth quarter growth makes crystal clear that the eurozone economy cannot yet stand on its own feet.

http://www.dailymail.co.uk/news/worldnews/article-1250433/Greece-debt-bailout-EU-leaders-split-euro-crisis.html#ixzz0fcdfykXk

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RE: Collapse of the euro is inevitable: Bailing out the... - 2/15/2010 9:27:49 AM

pahunkboy

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did he jump- or was he pushed?

paper roses- paper roses.

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RE: Collapse of the euro is inevitable: Bailing out the... - 2/15/2010 9:46:12 AM

LadyEllen

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Unfortunately this was on the cards right from the start and has only not come about until now because everyone was "doing well" (as it appeared). This was also the one reason why - although I think a single currency is a good idea - it was right we didnt join; it is simply unworkable to have a single currency for so many diverse economies. More practical should have been to instigate two or three unified currencies, grouping countries together which were comparable economically, until such time as all could be accomodated in a single currency.

But it was driven through by an ideological rather than economic or even sensible agenda - but not ignorantly as some have suggested; rather the ideological aim was one of political union - the missing element that would make us the United States of Europe and which in its absence the Euro would knowingly be vulnerable. Those seeking political union know for sure that not one country in Europe wants it, but this crisis (and the next one alike - whether natural or market induced - which will follow should this one be solved) will eventually make it inevitable.

In the short term, the Euro has to be bailed out by those with the means to do so. In the medium to long term political union must come to pass or the single currency be abandoned by one or a few or in general - because no one has the means to continue to prop it up.

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RE: Collapse of the euro is inevitable: Bailing out the... - 2/15/2010 9:53:11 AM

Phoenixpower

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quote:

Some countries have the political system but several countries do not and it takes everyone pulling together to go in the same direction but some politicians and parties pursue their own selfish interest.

and I am glad they do. I was never keen on having the euro back home and am so far glad with Merkels view

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RE: Collapse of the euro is inevitable: Bailing out the... - 2/15/2010 10:03:47 AM

DarkSteven

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Stop and take a look at that list. Spain, Greece, and Portugal have never had world class economies. But Ireland a decade ago was flying high on high tech and was being cited as an example of the proper running of an economy. It's fallen far, fast.

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RE: Collapse of the euro is inevitable: Bailing out the... - 2/15/2010 10:12:39 AM

LadyEllen

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Ireland enjoyed much of its success through EU investment and tax incentives to base businesses there though it should be remembered. Ireland should have fallen in any case as the new EU entrants received those funds.

Italy is being mentioned too, (the I in PIGS) - the northern end is industrial and prosperous but the south is more or less as is Greece, probably worse if anything and drags the whole down.

E

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RE: Collapse of the euro is inevitable: Bailing out the... - 2/15/2010 12:55:01 PM

willbeurdaddy

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The problem with the Euro isnt economic diversity, its cultural diversity. The US has been functional with a single currency despite very diverse economies from state to state because of cultural assimilation far greater than can be achieved across national borders.

< Message edited by willbeurdaddy -- 2/15/2010 12:57:41 PM >

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RE: Collapse of the euro is inevitable: Bailing out the... - 2/15/2010 2:24:04 PM

LadyEllen

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It is better when suspected to be a fool to keep silent rather than to speak and remove all doubt

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RE: Collapse of the euro is inevitable: Bailing out the... - 2/15/2010 2:25:08 PM

Jeffff

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Naaaaaaaaaaa... he studied ecomonics..... you labor party suck up!

Jeff

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RE: Collapse of the euro is inevitable: Bailing out the... - 2/15/2010 2:28:56 PM

LadyEllen

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I cant think what you mean Jefff - I simply misposted a comment when thinking out loud; obviously it doesnt refer to anyone in particular..........

E (studying law)

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RE: Collapse of the euro is inevitable: Bailing out the... - 2/15/2010 4:00:42 PM

SL4V3M4YB3

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I wouldn't say the Euro is dead yet or the collapse of it is inevitable.

The dollar has the federal reserve for such issues but the ECB has no such capability, probably in the short term they'll bail them out and in the long term they'll put some centrally managed fund in place for similar future events. According to the Euro entry tests regarding percentage debt of GDP I doubt any member state would currently qualify.

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All Forums >> [Community Discussions] >> Dungeon of Political and Religious Discussion >> Collapse of the euro is inevitable: Bailing out the Greek economy futile, says FRENCH banking chie

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