Iceland committed to joining the Euro

[BrilloPad]

What I don't understand is the Greeks, they're trying to pass austerity measures so they can get more money and people are striking and objecting. Won't that mean that the country will go down the pan?

They believe that for Europe to survive, fiscal transfers have to take place. Germany has benefited from an advantagous exchange rate due to the Greeks - so they expect something in return. Both sides are now involved in a Mexican standoff.

[The Spartan]

Thank you for the explanation, it was very well put.

[sasguru]

Iceland wanting to join the eurozone is hardly a ringing endorsement of it!

Quite. Even if the cracks are papered over, eventually Europe's many problems: demographic ageing, lack of competivity, high labour costs mean it is going to be low growth area for the next generation

[The Spartan]

It seems that the Germans have been the main beneficiaries of the Euro isn't their economy doing really well in comparison with the rest of the EU

[DodgyAgent]

It seems that the Germans have been the main beneficiaries of the Euro isn't their economy doing really well in comparison with the rest of the EU

Of course! They are not stupid are they. By imposing the Euro they have wiped out cost competition from "lower cost" EU countries and they have kept exchange rates disproportionately low, thus maintaining price competitiveness of their products.
Their banks have lent Eurozone consumers vast amounts of money to buy German products.

Now they have to pay for it by bailing the rest of Europe out of its financial crisis

[AtW]

eventually Europe's many problems: demographic ageing, lack of competivity, high labour costs mean it is going to be low growth area for the next generation

And UK is different how?

[SimonMac]

Does that mean the Prawn Rings will now be €3 not £3?

[DimPrawn]

Does that mean the Prawn Rings will now be €3 not £3?

How very dare you!

[DodgyAgent]

And UK is different how?

Because we are masters of our own destiny. If we want to let Russians into our country it is our decision. If we want to borrow like feckless idiots then it is our decision and we can suffer the consequences. No one is saying our bed is better but it is ours to mess up if we want to.

[The Spartan]

But if countries we've lent to default won't that make our financial position more precarious?