What you guys have to realise is the UK government doesnt care whether it hurts those pensioners who live in Spain, that is not their priority, nor should it be. They have to try and keep Britain's economy afloat in these most difficult of times.

You can't blame the EU or Germany for the pound being devalued, it is the decision of Britian's government.

Not disagreeing with your points just stating that I am concerned with what affects me and mine. Do you think then that should the worst happen and Britain goes down the tubes or should I say further down the tubes this EU fund would help us? or would they say sorry you didn't join the Euro so get on with it, I think the latter will apply. By the way I dont think I mentioned saying that I blamed the EU or Germany for our exchange rate. As for the government being concerned about British pensioners well I think it's fairly obvious that certainly Brown has no regard for them by the way he has fleeced them over the years.

That's a tricky one and depends on whether Britian has contributed in a large way to the rescue fund that was delivered at the weekend.

If it has, then that fund could also help Britain. If it hasn't and the fund is just meant to help euro countries, then Britain would have to look to the IMF for help (bad news).

If the pound did fail, then British pensions would become almost worthless overnight and we'd be seeing mass-migration of pensioners fleeing back to Britain. I think there is a very low chance of it failing completely though.

I suppose we will know a bit better in a day or so with what is going on in the UK as it seems there are still some desperate measures being tried by Mr Mandleson and co. At least the feared rout hasn't happened yet today. I can't honestly see how it could help the EU if Britain were to sink, there was mention on the lunch time news that this new package only really safeguards the Euro for about a year as it all depends on what happens in the other countries. Would just be nice to get some sort of currency stability for a period be it at 1.15 1.20 ish at least people would have an idea of what they are working with, forget the the 1.30 - 1.40s

Unfortunately the nature of markets is that they are fluid!

It is difficult when all your income is in one currency, but all expenses are in a different currancy.

I am lucky to have income and expenses in both currencies so I just treat them seperately and I'm never effected by currency fluctuations.

The only time I'd be effected is if I ever wanted to make a big purchase that needed me to exchange my pot of money from one currency to the other. I was thinking that over the next few years, if the pound gets strong I'll buy a house in Spain - and if the pound gets weak I'll buy one in the UK, so I can benefit either way

I remember talking to my former bank manager, who has been promoted to regional manager but still lives locally, and I asked him what difference it would make to the Spanish economy if a million Brits went home because the pound fell to an un sustainable level.

We were sitting in a bar and he went white and asked the barman for some paper.

I've long forgotten the figures he wrote down, but his bank has thousands of expat accounts. The noughts soon went off the page and he double checked them over several strong drinks.

"Well," he said. "My BMW would have to go and I would have to move back to my dad's finca to help with the olive harvest. Our bank would be bankrupt."

(This is the second largest bank in Spain).

Absolutely, nevermind what the effect of the release of another half a million (at least) properties on the market would be.

If the UK goes down it could take Spain with it!

Err, don't you mean: If Spain goes down, it'll make sure it takes Britain with it ?

I think bobd22, makes a couple of valid points.

With regards to what the EU Fund would say to Britain, if we were in trouble. I see no reason why this should not be pointed out to them, and to be replied to in exactly the same vein.

In the case of artificially propped up economies, my immediate thought was (as bobd22 says) that this only delays the inevitable, as money, like water, will surely eventually 'find it's own level' (?)
Call me cynical if you like, but as a 'peasant', I sort of get the sneaky feeling that currencies, only get 'shored-up', to give the people with money (I mean REAL MONEY), chance to switch all their finances into the forthcoming 'flavour of the month' !
Let's face it, it just wouldn't do, would it, if it were allowed to happen overnight, and they all got caught with their trousers down ?
As my GF often says: ' Much, will have MORE' !

Cheers
Fredthered


Cheers
Fredthered

Germany has just pledged 123billion Euros of the 750billion Euros the EU has pledged to save the European currency.

Angela Merkel on Sunday saw her party kicked out of power in North Rhine-Westphalia and no longer has an overall majority in the upper house of Parliament in Berlin.

Now German citizens have also been told that a tax cut is shelved for at least two years, and will probably never materialise in the life of this administration.

They don't feel they are the best managed economy in Europe and the majority apparently wish they had never heard of the Euro.

Jim

I live in Spain and acquired my flex account whilst living in the UK. They have my Spanish address - when the card expires (next year) will I automatically get a new card sent here or will the service be withdrawn because I don't live in UK?

Britain's bill for the bailout varies between £10billion and £43billion what a Chancellor, doesn't seem to know what the hell he's committed us to. But there is no doubt on the continent that it is Germany that is picking up the lion's share of the tab.

Jim

You will get a new card sent to your overseas address. I was only talking about openning a flex account while living abroad.

Do you think that's for the benifit of the greater Europe or because Germany stands to loose the most? From what I have read the Germans are getting sick of the whole carry on with the euro Mrs Merkel may of course end up paying the price. As for Darlings last move I don't realy think labour have had much of a clue in many of there dealings with the EU lets hope things can improve now!

The pound stands higher against the Euro today than it has for a long time. The markets like certainty and we now have a stable government in the UK for the next five years, and the markets like the sound of the coming austerity measures in the UK.

Those austerity measures will undoubtedly cut back my UK earnings, like everyone elses, and the only hope I've got to retain my level of living as an expat is a rise in the pound equivalent to the budget cuts.

Some clever economists have estimated the budget cuts at an overall 10 to 15 percent. To retain my standard of living I need the pound to rise to at least 1.30 Euros.

It's not impossible for that to happen, but, just in case, I've got some large suitcases in the garage.

Or you could cut back a bit?