Euro slowly unravelling !!

[PM-Junkie]

This commentator gives reasons why there won't be anyone seriously leaving the Euro:
voxeu
Isn't it actually the case that countries are currently
joining the Euro (Slovakia this month, and according to the Bloomberg article Hungary will join soon)?
Incidentally, it seems people with certain prejudices have a fixed idea about certain country's indebtedness. Which country do you suppose has greater personal debt - germany or Italy?

Household debt as a percentage of disposable income

Denmark 260%
Netherlands 246%
New Zealand 181%
Australia 173%
United Kingdom 159%
Ireland 141%
United States 135%
Sweden 134%
Japan 132%
Canada 126%
Germany 107%
Spain 107%
Finland 89%
France 89%
Italy 59%

Time.com blog

Nice try, but Eichengreen's article was written over a year ago. You obviously haven't noticed that economically things have changed a little since then, and he has since referred to the pressures on the euro as being "severe in the extreme". I'll dig out the latest quotes, they are a little more valid than the out of date article you choose to quote...I have them somewhere.

And if you can't see that the huge variance of household debt across the Eurozone is in itself a huge problem, then perhaps this isn't a topic you should be commenting on?

[MrMark]

And if you can't see that the huge variance of household debt across the Eurozone is in itself a huge problem, then perhaps this isn't a topic you should be commenting on?

This "one size doesn't fit all" argument is often raised by opponents of the single currency in Europe. Yet why not take it to its logical conclusion - a different currency for London, Birmingham, Dundee etc? I'm sure the average household debt is many times greater in Kensington than in say Norfolk or Bridlington? I can understand many arguments against losing sovereignty over currency and interest rates; but this "one size doesn't fit all" always seems very suspect to me.

[PM-Junkie]

This "one size doesn't fit all" argument is often raised by opponents of the single currency in Europe. Yet why not take it to its logical conclusion - a different currency for London, Birmingham, Dundee etc? I'm sure the average household debt is many times greater in Kensington than in say Norfolk or Bridlington? I can understand many arguments against losing sovereignty over currency and interest rates; but this "one size doesn't fit all" always seems very suspect to me.

Now you are taking the piss. The difference is that those places you cite are subject to the same political, financial and TAX regimes, the Eurozone is not.

That is why those of us with more than two brain cells to rub together could see that the Euro was part of an ongoing political, tax and financial unification process that the political elite were and are hell-bent on, but that the majority of people have repeatedly shown they want no part of (and not just in the UK). THAT is why votes on the subject are ignored, THAT is why it will be forced through whether people like it or not or the Euro experiment, sooner or later WILL NOT WORK.

[BrilloPad]

Now you are taking the piss. The difference is that those places you cite are subject to the same political, financial and TAX regimes, the Eurozone is not.

That is why those of us with more than two brain cells to rub together could see that the Euro was part of an ongoing political, tax and financial unification process that the political elite were and are hell-bent on, but that the majority of people have repeatedly shown they want no part of (and not just in the UK). THAT is why votes on the subject are ignored, THAT is why it will be forced through whether people like it or not or the Euro experiment, sooner or later WILL NOT WORK.

I am not convinced they were taking the piss. Several commentators have said that in the early 1980s the recession outside the city would have been alot less severe if not tied to the city. so a city pound and a non-city pound.

Enforcing it would be impossible though.

Monetary union usually follows political union : which is why the Euro is an interesting experiment. interesting because we are not part of it.

[PM-Junkie]

I am not convinced they were taking the piss. Several commentators have said that in the early 1980s the recession outside the city would have been alot less severe if not tied to the city. so a city pound and a non-city pound.

Enforcing it would be impossible though.

Monetary union usually follows political union : which is why the Euro is an interesting experiment. interesting because we are not part of it.

So proponents of the Euro think the case for a single currency in Europe is made by making the case for more than one currency in the UK?

Interesting logic. You've got me there.

[BrilloPad]

So proponents of the Euro think the case for a single currency in Europe is made by making the case for more than one currency in the UK?

Interesting logic. You've got me there.

MrMark was not actually disagreeing with you. its an interesting argument however.

Why do you assme everyone wants to fight? Oh yes : this is general. step outside now.

[PM-Junkie]

MrMark was not actually disagreeing with you. its an interesting argument however.

Why do you assme everyone wants to fight? Oh yes : this is general. step outside now.

Try reading it again.

"I can understand many arguments against losing sovereignty over currency and interest rates; but this "one size doesn't fit all" always seems very suspect to me."

[TykeMerc]

Now you are taking the piss. The difference is that those places you cite are subject to the same political, financial and TAX regimes, the Eurozone is not.

That is why those of us with more than two brain cells to rub together could see that the Euro was part of an ongoing political, tax and financial unification process that the political elite were and are hell-bent on, but that the majority of people have repeatedly shown they want no part of (and not just in the UK). THAT is why votes on the subject are ignored, THAT is why it will be forced through whether people like it or not or the Euro experiment, sooner or later WILL NOT WORK.

I'm not disagreeing, but aren't there examples where there's a single currency but differing political and tax regimes? The USA springs to mind as does Australia (there are probably other examples), they are federated states with their seperate states having legislatures and tax raising powers and an overall federal government, how does this differ so much from the EU (in practice not principle obviously) ?

I may be miles off the beam here and would be happy to be corrected, but it seems to me that apart from the likes of the USA having an official federated government there are marked similarities to the EU as it stands with the Euro.

[Cyberman]

Why do you want it to fail ? Surely it will have a bad impact on us too ??

.. because it will mean that we will never join it !! While it is there, it is always a worry because you just cannot trust New Lie.

[PM-Junkie]

I'm not disagreeing, but aren't there examples where there's a single currency but differing political and tax regimes? The USA springs to mind as does Australia (there are probably other examples), they are federated states with their seperate states having legislatures and tax raising powers and an overall federal government, how does this differ so much from the EU (in practice not principle obviously) ?

I may be miles off the beam here and would be happy to be corrected, but it seems to me that apart from the likes of the USA having an official federated government there are marked similarities to the EU as it stands with the Euro.

Because with the tax regimes you cite, the federal government sets the minimum threshold. Big difference.