Germany may use mark again, leave EMU

[Andem]

Add into this mix that the EU is obliged (via having that common currency) to bail-out those that share the currency. That costs real "dollars" to the populations of those nations like Germany.

The principle of the EU is very reasonable; but in practice, it is very risky (as we are seeing).

The EU has no such obligations, infact that goes against the pillars of the entire EMU.

Greece is the only country in the entire EMU who should have never been let in under the strict entry criteria. Their national debt was just too high. The austerity measures talked about in Greece had Athens in a state of mass rioting. That's what we get for sending them €110billion. I think upwards of 60% of Germans want Greece kicked out of the EMU.

 

[Slim Chance]

The EU has no such obligations, infact that goes against the pillars of the entire EMU.

Greece is the only country in the entire EMU who should have never been let in under the strict entry criteria. Their national debt was just too high. The austerity measures talked about in Greece had Athens in a state of mass rioting. That's what we get for sending them €110billion. I think upwards of 60% of Germans want Greece kicked out of the EMU.

I measured my response (in part) to the original EU arrangement that stated that certain "controllable" economic indicators were to be held within a certain range in order to maintain compliance with the arrangement/membership

In my mind, that is possible in theory, but impossible in practice. Clearly, the political will and the individual national appetite(s) to toe the line varied depending on the nation in question.

With that in mind, today, I am to understand that Italy, Portugal and Spain are also in precarious economic positions... The question is, how long will the "have" nations be capable of supporting the "have nots". There is a hell of a cost associated with this - Are the citizens of the various nations willing to float those countries that aren't prepared to really help themselves?

 

[Machjo]

Certainly countires that don't toe the line ought to be booted out of the EU.

A shared international currency is sustainable only under a tight-fistedly conservative fiscal policy. Anything less than that, and it's preferable to keep your own currency.

If countries are to share a currency, as soon as one country starts to slip, the others ought to give it the boot right away to send a clear message to the others that this shared currency comes with responsibilities.

By the way, I'd say the same applies to provinces too. They are sharing a common currency, the Canadian dollar, and so each province has a responsibility to maintain it. If one province gets out of line, the others ought to straighten it out with the utmost severity.

 

[Canaduh]

Well let's just consider one thing. I didn't live here during the change-over from the mark to the euro, but I do know that after the change, prices simply sky-rocketed; prices remained the same, but were no longer in D-Mark, but rather the more expensive euro.

I don't know how much the German government considers price-stability, but the day we went from mark to euro, everything just became more expensive.

With the amount of money my tax euros (in Germany) go into supporting other people in other areas of this continent (specifically the southern countries, more specially Greece), I'd rather pull out of the EU all-together and take a stance closer to Switzerland -- some of the benefits, some of the drawbacks -- a kind of half-memberstate.

And oh yeah, as to the main point of Germany leaving the union, it's nothing more than a rumour spurred by a rumour of something Sarkozy may or may not have said about France.

I was in France and the UK when it happened. Everything in France went up 20-40% basically over night, its the worst decision they ever made.

 

[dumpthemonarchy]

Certainly countires that don't toe the line ought to be booted out of the EU.

A shared international currency is sustainable only under a tight-fistedly conservative fiscal policy. Anything less than that, and it's preferable to keep your own currency.

If countries are to share a currency, as soon as one country starts to slip, the others ought to give it the boot right away to send a clear message to the others that this shared currency comes with responsibilities.

By the way, I'd say the same applies to provinces too. They are sharing a common currency, the Canadian dollar, and so each province has a responsibility to maintain it. If one province gets out of line, the others ought to straighten it out with the utmost severity.

The federal govt regulates the currency with its monetary policy, the provinces have no jurisdiction here. The provinces are part of Canada, a united political unit. They do not share a currency. European countries share a currency. So the provinces cannot get out of line.

It is tough to tell soverreign nations how to conduct monetary policy, they don't follow rules from outside, it simply is not politically feasible. The EU is a success, the euro is on a tightrope.