kittycat1

So whats going on with the Euro? Is it actually feasible that it could collapse? Meow?? And what would be the impact on other currencies such as sterling and dollar? And what would happen to the countries with the euro currency?

http://www.bbc.co.uk/news/world-europe-16016131

UKCityGent

The Euro will stay here for the foreseeable future as a single currency - there needs to be a review the criteria for entry and raise the standard (by dropping countries like Greece).

For the Euro to collapse will be a political decision rather than a fiscal policy - and that political will to change isnt there with the current leaders members of state.

Meow

The Euro has always been a political tool and I can't see France or Germany allowing it to fail. I suspect some countries may be asked to leave, but that would be costly in numerous way too.

Millhouse

How? There is no process, or law that allows any country to be asked to leave, or withdraw.

I'm not saying you are wrong. It's just going to be very messy. The UK will almost certainly be caught up in it, if not, it will be next on the list.

This is an excellent analysis of what is needed:

http://bruxelles.blogs.liberation.fr/UBS%20fin%20de%20l'euro.pdf

Meow

You don't think others want Greece out? If so, I am sure they'd find a way.

It is all very messy indeed, but will power will probably triumph over logic. It's about political expediency.

Millhouse

In the grand scheme of things Greece is a only a tiny sweetcorn case in a rather large pile of shit. Greece could have been contained, it's the Italians, Spanish and French that will destroy it.

Meow

The French aren't going anywhere. Italy is very bad comedy and Spain suffers from inertia at the best of times.

It'll be interesting to watch...

Patsy Stoned

Many of you must be confused about this whole Euro crisis, so to put it in layman's terms read the following:
It is a slow day in a little Greek Village. The rain is beating down and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit. On this particular day, a rich German tourist is driving through the village, stops at the local hotel and lays a €100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night.
The owner gives him some keys and, as soon as the visitor has walked upstairs, the hotelier grabs the €100 note and runs next door to pay his debt to the butcher.
The butcher takes the €100 note and runs down the street to repay his debt to the pig farmer.
The pig farmer takes the €100 note and heads off to pay his bill at the supplier of feed and fuel.
The guy at the Farmers' Co-op takes the €100 note and runs to pay his drinks bill at the taverna.
The publican slips the money along to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him "services" on credit.
The hooker then rushes to the hotel and pays off her room bill to the hotel owner with the €100 note.
The hotel proprietor then places the €100 note back on the counter so the rich traveller will not suspect anything. At that moment the traveller comes down the stairs, picks up the €100 note, states that the rooms are not satisfactory, pockets the money, and leaves town.
No one produced anything. No one earned anything. However, the whole village is now out of debt and looking to the future with a lot more optimism. And that is how the bailout package works

Paracletus

To add to that anecdote, here's another view from Greece..

'Some years ago a small rural town in Spain twinned with a similar town in Greece. The Mayor of the Greek town visited the Spanish town. When he saw the palatial mansion belonging to the Spanish mayor he wondered how he could afford such a house. The Spaniard said; "You see that bridge over there? The EU gave us a grant to build a two-lane bridge, but by building a single lane bridge with traffic lights at either end this house could be built". The following year the Spaniard visited the Greek town. He was simply amazed at the Greek Mayor's house, gold taps, marble floors, it was marvellous. When he asked how this could be afforded the Greek said; "You see that bridge over there?" The Spaniard replied; " No?"'

Patsy Stoned

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