Comments on: Thank god we did not join the Euro

By: LFAT

LFAT — Fri, 05 Feb 2010 11:09:00 +0000

“Europe doesn’t manage their economies”

Hmmm. So the ECB doesn’t centrally their interest rates and the rules on deficits just appeared out of thin air?…. Your suggestion that it cannot take responsibility for someone fudging their statistics also seems to suggest that the Eurozone is a flawed concept from the start – which I agree with. There isn’t a causal link and I never said there was – my point was that the Eurozone is having an extremely difficult time (and indeed always has done) applying one set of rules, regulations and financial levers to almost an entire continent.

By: Niall

Niall — Fri, 05 Feb 2010 11:01:02 +0000

Can you explain to me how Greece and Portugal’s mismanagement of their economy has got anything to do with the Euro?

Europe doesn’t manage their economies, neither can it take responsibility for Greece fudging the statistics that meant it was able to enter the Eurozone.

Are you trying to suggest that being a member of the Euro means economies can’t be run badly?

In short you’ve failed to prove the causal link between a poor performing economy and membership of the Euro. Perhaps if you’d analysed exchange rates you’d notice that throughout the economic downturn the Euro has strengthened against the GBP…

By: BarryS

BarryS — Fri, 05 Feb 2010 09:23:18 +0000

@ Shaun PilkingtonOur Financial industries would not have had the same influence in terms of the consequence of their collapse, had they been grafted onto the Euro in 2000.

I would be interested to see the reasoning behind this statement, surely financial services would have been much the same in scale, diversity of business and interdependence but the levers available much reduced hence the likelihood our problems would be even worse.

By: jameshigham

jameshigham — Thu, 04 Feb 2010 17:31:25 +0000

Correction – thank God we haven’t joined it … yet. This is what AA is fighting.

By: Shaun Pilkington

Shaun Pilkington — Thu, 04 Feb 2010 15:39:13 +0000

Dunno, LFAT. Our financial services industry had liabilities larger than our national GDP which is why we are now buggered. Our Financial industries would not have had the same influence in terms of the consequence of their collapse, had they been grafted onto the Euro in 2000. We would, however, now be looking at a different set of problems as we see Greece, Spain and Italy manifest the problems consequent to fiddling their figures to join the Euro in the first place.

By: LFAT

LFAT — Thu, 04 Feb 2010 15:33:18 +0000

Of course things can change, and we’ll have to see how the UK economy plays out, but I think it is bloody lucky we’ve had control over our own financial levers during this economic crisis or things could have been even worse. Yes, even worse.

By: Shaun Pilkington

Shaun Pilkington — Thu, 04 Feb 2010 15:26:48 +0000

http://order-order.com/2010/02/04/gilts-plunge-on-end-of-q-e/

Don’t thank anyone yet. Though a non-existent sky fairy is as good a god of the market as any other!

By: LFAT

LFAT — Thu, 04 Feb 2010 12:55:18 +0000

Ha, I suppose that’s a bonus!

By: Bill Quango MP

Bill Quango MP — Thu, 04 Feb 2010 12:21:05 +0000

The good news for holidaymakers is the weakling Euro countries are helping our devalued £ creep up 10% or so.
riviera looking a little more likely at the moment.

By: LFAT

LFAT — Thu, 04 Feb 2010 09:50:27 +0000

“It is a political construct, not an economic one”

Quite. This also explains why the desperation to ensure that Portugal, Spain and Greece don’t drag the currency down is palpable.