Reply to: So has the Euro been saved?

[DodgyAgent]

The Euro most certainly has not been saved.

Irrespective of its short term perils, in the mid to long term there is one fundamental reason why the Euro will fail.

No matter how close political convergence, now matter how well fiscal policies are aligned, (and each of those will attract much strife) there's just no getting away from the fact that the better performing north European economies are forced to operate the same exchange rate as the poorer south European economies. The social costs of the south European nations being consistantly paid for by the taxes of the better performing economies (mostly Germany, lesser extent France). In other words the German economy in particular, becomes grotesquely under-valued, and the weaker economies become grotesquely over-valued. And I stress that word 'grotesquely'.

And that put simply just aint sustainable - something will snap, including German tax payer patience.

How will it resolve itself ? By the Eurozone either becoming much, much smaller, or its planned ditching.

It is not all "poor germans" in this. The Germans get to sell their goods more cheaply as their exchange rate is low being part of the Euro, they have negated the labour cost advantages of the greek italian etc economies and they then lend them money to buy their goods. Poor Germans they are not and they deserve everything they get

[BobTheCrate]

The Euro most certainly has not been saved.

Irrespective of its short term perils, in the mid to long term there is one fundamental reason why the Euro will fail.

No matter how close political convergence, now matter how well fiscal policies are aligned, (and each of those will attract much strife) there's just no getting away from the fact that the better performing north European economies are forced to operate the same exchange rate as the poorer south European economies. The social costs of the south European nations being consistantly paid for by the taxes of the better performing economies (mostly Germany, lesser extent France). In other words the German economy in particular, becomes grotesquely under-valued, and the weaker economies become grotesquely over-valued. And I stress that word 'grotesquely'.

And that put simply just aint sustainable - something will snap, including German tax payer patience.

How will it resolve itself ? By the Eurozone either becoming much, much smaller, or its planned ditching.

[Doggy Styles]

So has the Euro been saved?

Beeb

The deal still has to be agreed by a number of national parliaments, and the reaction of the financial markets suggests it has failed to bring a swift end to the euro crisis.

The BBC's Rob Cameron in Prague said: "Commentators here have taken a more cautious - and arguably more accurate - view, reflecting the fact that the Czechs haven't signed up to anything yet."

The current French presidential front-runner, Socialist Francois Hollande, said on Monday that if he was elected next May he would renegotiate the accord, saying: "This accord is not the right answer."

[CheeseSlice]

Oh, yes.

And buy some guns & baked beans whilst they're still available.

One can't be too careful.

Food and fuel will be the money of the future.

I'm off to halfords to buy all of their jerry cans and fill with asda petrol, and then Lidl to buy cheap immitation spam for trading, and then real spam for eating.
Think I may get one of those steel doors to replace the front door. One with a sliding hatch at the top for trading and poking your 12 bore shotgun out of

[Mich the Tester]

I saved quite a lot of euros, not just the one. Then some bankers lost them, correction, pissed them up against the wall, snorted cocaine through them, bought themselves Ferraris and then said they'd lost them.

[The Spartan]

Baked beans lol I always thought it was bread and milk

[CheeseSlice]

The summit doesn't really seem to have tackled the excessive debt, forced austerity leading to civil unrest and economic depression, Greek default etc.
Complacent politicians may find out that while "everyone in Europe speaks German", the markets speak English.

The politics and the markets are only two things we can really see. I'm starting to wonder if a hidden event within the Banking system will be the deciding moment, talking everyone by surprise. e.g. Bank liquidity causing the failure of one or more major European banks, taking out the whole system in a Lehman-esque way.
There have been some worrying headlines from the central bankers recently which are almost running in a different and possibly independent timeline to the politicians.

[Doggy Styles]

The summit doesn't really seem to have tackled the excessive debt, forced austerity leading to civil unrest and economic depression, Greek default etc.
Complacent politicians may find out that while "everyone in Europe speaks German", the markets speak English.

Complacent might be a bit unfair. They just have too many contradictory interests which makes it the devil's own job to sort out.

[DodgyAgent]

I thought you were in favour of reducing the size of the public sector?

[doodab]

Quite. they have tried to sneak in legislation harmful to our single biggest industry on the back of it.

I thought you were in favour of reducing the size of the public sector?

[The Spartan]

What makes it worse is that even the minor EU states outside of the Euro are having to bail out economies that have a much better standard of living than them

[DodgyAgent]

The Euro has not been saved - but the UK has been appointed official receiver for when it fails.

kerching

[DodgyAgent]

The Euro has not been saved - but the UK has been appointed official scapegoat for when it fails.

Quite. they have tried to sneak in legislation harmful to our single biggest industry on the back of it.

[doodab]

The Euro has not been saved - but the UK has been appointed official scapegoat for when it fails.

[BrilloPad]

The Euro has not been saved - but the UK has been appointed official scapegoat for when it fails.