Eurozone crisis

[Zero Liability]

There's also precious little reason why the Germans should do this, to keep some bankrupt project going on for ideological purposes.

[darmstadt]

This only works if there is also labour mobility. There is very little of it between Greece and Germany or Greece and the UK.

The number of Greeks going to Germany for work (or at least staying more than a year) over the past 4 years has more than doubled. You can check the figures from the BMI reports if you feel that way inclined and I suspect that from Greece to the UK is also rising, check the ONS for those. For example between 2012 and 2013 there was a 33% rise in the number of NI numbers given to Greeks in the UK which suggests some form of migration...

[NickyBoy]

There's also precious little reason why the Germans should do this, to keep some bankrupt project going on for ideological purposes.

Yeah I agree. That's why its an all or nothing affair.

If they had gone the whole hog and opted for a full European superstate along with the Euro, then this kind of wealth transfer would have occurred under taxation, the same way it does in any country with areas of disparate wealth. Greeks poorly balanced social policies and business sector organisation would then also be a non-issue, as they would be dropped as part of being absorbed into a larger state.

If mainland Europe isn't ready to form said superstate, then it certainly shouldn't be running a single currency! As it stands, the Euro is now an objective failure.

[eek]

Germany has just said no....

[DodgyAgent]

The number of Greeks going to Germany for work (or at least staying more than a year) over the past 4 years has more than doubled. You can check the figures from the BMI reports if you feel that way inclined and I suspect that from Greece to the UK is also rising, check the ONS for those. For example between 2012 and 2013 there was a 33% rise in the number of NI numbers given to Greeks in the UK which suggests some form of migration...

Labour mobility despite a high increase remains stubbornly low Labour Mobility Within The EU: The Real Picture | Social Europe

[eek]

Germany has just said no....

and tried to add another condition to the agreement....

[DodgyAgent]

Let us not forget. Aided and abetted by the single currency falsely raising the buying power of euro residents the German banks lent the Greeks money to buy German goods. Being part of the Euro meant that germany was able to price its goods at much more competitive rates than they would have been able to do had they still had the Mark. The Greeks are now suffering severe hardship as a result of this. it looks as if the germans are still bent on taking over Europe. The trouble is will they have enough to tanks to deal with the rioters - backed of course by Putin when things deteriorate even more?

[Doggy Styles]

Being part of the Euro meant that germany was able to price its goods at much more competitive rates than they would have been able to do had they still had the Mark.

While we respect their economy, it wouldn't be quite where it is today without this. A point often forgotten.

Where will it all end?

[Zero Liability]

A weak currency is a temporary boon for exporters but longer term it can be a liability as it pushes up import costs. The Greeks benefitted as much, if not more, than the Germans from being in the EZ and even lied to get in it. Whilst I am not fond of the EU or the Eurozone, they aren't just hapless victims of it, or at least their politicians are not.

[BrilloPad]

It is the beginning of the end of the Euro

The beginning of the end was 16th Sep 1992.

Another fudge will be found. Both sides have too much to lose.