spare a thought for Europe.
I strongly suspect that the EU will cease to have one unified
Currency, the Euro over the next 3 to 5 years... for all you know you
may see the Franc, the Lira and the Mark back in vogue.
Reason? The Eurozone has many Eastern European countries which are on
the verge of soverign default. Iceland has already defaulted and is a
basket case.Ukraine is on the verge of it. A few Baltic nations too..
Not to forget the "strong" currency areas like Portugal and Italy. The
Italian Lira was akin to the Indonesian Rupiah in value before it got
"value added" through the "Euro"ization exercise.
At that time, the calcluation of the "developed" Euro zone countries
was that they would get a new "local" market to export their wares
without much trade barriers, and would get cheap "sweatshops" to
manufacture things for their consumption.
That same calculation has now turned topsy turvy. What were considered
as assets are now fast becoming liabilities, in the sense that the
rich nations within EU will now have to carry the "baggage" of the
poorer cousins. Financial survival or filial love? Who will win? Take
your pick!!!
1 comment:
I would assume they would pass the crisis holding on to Euro. I think the advantage for long term is better for all countries than short term disadvantages. Yes, Italy, Greece situation is very bad!!. But I guess they would stick it.
I guess people outside Euro Denmark, Iceland are wanting to be in. So looks like temporary phase.
You are right, it is tough times for these countries. I would assume Ireland may vote in for Lisbon as soon as they can.
Lets see!!.
Karthik.
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