Economic siutation of Europe and the Euro.

[SamuelRSmith]

kowenicki said:

SecondWar said:

tombi123 said:

Ireland and Greece are in the shit. Haven't heard about Portugal... The big three (Germany, France and the UK) seem to be out of recession and growing again.

Not really, when theyre talking about austerity, 5 countries are usually always mentioned: Greece, Portugal, Spain, Ireland and the UK, because they all have massive budget deposits. Greece and Ireland have already accepted bailouts, Portugal and Spain could but Im not very knowledgeable about their situation.
The Government in the UK wont accept one and there would major repercussions if they did (although I figure anyone from the other 4 countries would say the same, and look what happened in Greece). The difference being the UK is the most Eurospectic country in the EU and does not use the Euro.

Incorrect.  The UK doesnt need one.    It isnt the size of ones debt but the ability to service the debt that is the issue here.

Of course, we cannot guarantee that the UK will always be able to service the debt, we're lucky at the moment, as the markets approve of the coalitions spending cuts... but we must emphasise "at the moment". The more sceptical investors becomes about European bonds in general, the more the UK has to cut to keep the investors happy (after all, large chunks of our economy are tied to the EU)... the Gov't can only cut so much at any one time, too much and they face social unrest - which politicians don't like... PARTICULARLY when the Government is based on a coalition.

There have been rumours circulating recently of a downgrading in France's credit rating. This will result in the interest rates rising in all European bonds.