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Why the Euro failed

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Re: Why the Euro failed

#11

Post by NicoJuicy »

ackidacki wrote: post #6
twblalock wrote: post #4

The Euro didn't fail. It has flaws (as did many European currencies that existed before the Euro), but no EU member state has abandoned it, because the upsides outweigh the downsides and the costs of leaving would be enormous. Even Greece didn't do that, although they did come close.

Europe's most successful countries are the ones with their own currencies. It's easy to compare the differences in growth and debt with those in and out of the EZ. Ireland is the only true exception & it's for reasons relating to its tax policies.

? They were some stronger countries that wanted to play by their own rules. It's always like that unfortunately

But don't over exaggerate, we are just about to see the story when one tries to play on their own without the EU. I think it's going to be the first true example of "what happens"

Re: Why the Euro failed

#12

Post by NicoJuicy »

ackidacki wrote: post #10
twblalock wrote: post #8

Earlier quoted context omitted.

What's your standard of success? Germany has the largest GDP in Europe by about a trillion dollars and uses the Euro.

GDP growth, consumption growth, manageability of debt, standard of life, employment rate. The central question being not "how big is it because of the euro" but "is it better because of the euro" Germany and Benelux are high but problematic in areas of consumption. 41% of the German Economy is export orientated (meaning consumption is extremely low) and while employment rates are high, employment isn't completely 'fu…

What do you mean, problematic on areas of consumption? ( From BE, fyi )

Re: Why the Euro failed

#13

Post by NicoJuicy »

jajag wrote: post #5
twblalock wrote: post #4

The Euro didn't fail. It has flaws (as did many European currencies that existed before the Euro), but no EU member state has abandoned it, because the upsides outweigh the downsides and the costs of leaving would be enormous. Even Greece didn't do that, although they did come close.

The Euro has failed to generate the promised economic growth. Average GDP growth for the Eurozone since the Euro's adoption is a bit above 20%. The UK has managed double that since it opted to stay out, and other non-Eurozone EU members have done even better. As addressed in the article, the Euro has also failed to promote closer political unity - see what happened during the Greek crises, or what is happening curren…

I'm holding you on your UK quote, they had a lot of more advantages playing with their own rulebook. I'm wondering what that will bring without the EU

Re: Why the Euro failed

#14

Post by ackidacki »

NicoJuicy wrote: post #11
ackidacki wrote: post #6

Earlier quoted context omitted.

Europe's most successful countries are the ones with their own currencies. It's easy to compare the differences in growth and debt with those in and out of the EZ. Ireland is the only true exception & it's for reasons relating to its tax policies.

? They were some stronger countries that wanted to play by their own rules. It's always like that unfortunately But don't over exaggerate, we are just about to see the story when one tries to play on their own without the EU. I think it's going to be the first true example of "what happens"

It'll be interesting to see what happens with the UK. While this is bad for them i'm speaking of countries in the EU but not in the EZ that have far better metrics across the board inc Sweden, Norway, Denmark & Poland. If you take a 30 year period and compare them to Europe's best (Germany) you can see drastic improvements in them relatively.

It's very distracting to keep looking at the UK and Brexit and forget that others on the continent clearly do better without the Euro. There are still countries in the Eu with EZ opt outs.

I'd also like to point out Switzerland is not in the Euro and not in the EU and its metrics are far better on everything - although it is in Schengen.

Re: Why the Euro failed

#15

Post by ackidacki »

NicoJuicy wrote: post #12
ackidacki wrote: post #10

Earlier quoted context omitted.

GDP growth, consumption growth, manageability of debt, standard of life, employment rate. The central question being not "how big is it because of the euro" but "is it better because of the euro" Germany and Benelux are high but problematic in areas of consumption. 41% of the German Economy is export orientated (meaning consumption is extremely low) and while employment rates are high, employment isn't completely 'fu…

What do you mean, problematic on areas of consumption? ( From BE, fyi )

In simple terms most of Benelux & German GDP doesn't make its way into citizens pockets, as a result pay is relatively poor and has an impact on the standard of living. This is a result of official policy (Tarifeinheitsgesetz) meant to make labour more competitive.

If you look up GDP it is pretty big, but if you look up wages you will find its relatively bad.

Re: Why the Euro failed

#17

Post by zeristor »

jajag wrote: post #5
twblalock wrote: post #4

The Euro didn't fail. It has flaws (as did many European currencies that existed before the Euro), but no EU member state has abandoned it, because the upsides outweigh the downsides and the costs of leaving would be enormous. Even Greece didn't do that, although they did come close.

The Euro has failed to generate the promised economic growth. Average GDP growth for the Eurozone since the Euro's adoption is a bit above 20%. The UK has managed double that since it opted to stay out, and other non-Eurozone EU members have done even better. As addressed in the article, the Euro has also failed to promote closer political unity - see what happened during the Greek crises, or what is happening curren…

Wasn't this mostly down to pound plummeting in value.

The UK can devalue its currency every time it needs a GDP growth spurt.

Just like Italy used to do.

Re: Why the Euro failed

#18

Post by kyriakos »

aside from the economic issues which I believe are exaggerated, being able to travel around EU and not caring about exchange rates etc is really nice. moreover I order from online shops around europe and the only time I need to mentally convert prices is for amazon.co.uk.

Re: Why the Euro failed

#20

Post by hal_9000 »

ackidacki wrote: post #6
twblalock wrote: post #4

The Euro didn't fail. It has flaws (as did many European currencies that existed before the Euro), but no EU member state has abandoned it, because the upsides outweigh the downsides and the costs of leaving would be enormous. Even Greece didn't do that, although they did come close.

Europe's most successful countries are the ones with their own currencies. It's easy to compare the differences in growth and debt with those in and out of the EZ. Ireland is the only true exception & it's for reasons relating to its tax policies.

lol, really ? What an ignorant comment
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