Europeon Balanced budget ammendments.

[SamuelRSmith]

Mr Khan said:

SamuelRSmith said:

non-gravity said:

haxxiy said:

I've read a couple of analysts or so saying it is Germany and France's gentle way of saying they're getting out if things do not improve very soon, i.e. they're getting out, or making the others get out.

Never thought I'd say this, but seems like the Euro is in it's way out, at least for some if not most countries.

My politicians say that it's much more expensive to blow the Eurozone up than to do what we do now.

If Italy or Spain collapse however I think it's time to stop.

 

Perhaps then the Netherlands, Luxembourg, Austria and Finland can join Germany in the new Deutsch Mark. Belgium and France will want in but they can go screw themselves.

That would still leave Slovenia, Slovakia and Estonia of which I don't know how well they're doing

Wouldn't happen. Germany wanted countries like the PIIGS in the Euro precisely because these countries basically lowered the value of the Euro, which is good for German industry.

Right. An export-heavy market wants a relatively weak currency, but don't want the economic conditions that generate a weak currency, which is why letting less-advanced prospects in on the Euro was a perfect fit for them.

Exactly, the Mark was one of the strongest currencies in the world before Germany moved to the Euro, which traded lower than the Mark exactly thanks to the periphery economies in the group. It also eliminated currency conversion completely between say, Greece and Germany. So, no matter how strong German exports were, the price never changed to the import-reliant Greeks.

Not only did the PIIGS bring down the cost of trading with Germany, but the PIIGS themselves became more and more dependant on Germany. As the ECB kept interest rates low, far lower than what they needed to be in the PIIGS, not enough capital investment occured in these countries, meaning that as their economies grew, all they were doing were buying more and more imports from Germany, rather than ever develop into countries which could export back, and, you know, create competition for German exporters.