what reaction to expect now the Euro's under threat ?

swannee7


Joined: 21/08/2009
Posts: 394

Message Posted:
03/05/2010 14:52

I'm thinking more about the govt. of the ROC and its response to this very serious threat to their own economy. How might all this impact on the TRNC later this year? And what about Turkey's long-held interest in joining the EU and by default, its monetary counterpart the Euro ? Is this the beginning of the end of the EU band wagon? What in fact ARE the smaller member countries actually contributing ? Anyone got some relatively uncomplicated ideas ?

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
03/05/2010 16:09

Portugal and Spain (in that order) are next to take the same route as Greece and their monetary problems will not only put a strain on the EU but ultimately on the IMF. The ROC along with Greece lied about their fiscal status to gain 'club membership'. This is why I think that there will be a second recession for countries that are part of the EU club.



' What in fact ARE the smaller member countries actually contributing ? Anyone got some relatively uncomplicated ideas ?'



That is the problem as there are only 4 or 5 members that are pumping money into the EU and all of the smaller member states are taking money out which is why the likes of Germany are now starting to get concerned about the level of finance that they will be expected to offer toward the Greece bail out.

The phrase 'Recipe for disaster' comes to mind.

AJ

swannee7


Joined: 21/08/2009
Posts: 394

Message Posted:
03/05/2010 20:01

AJ: Your answer (2nd part) is exactly what I was thinking. That's possibly why the EU in its present form could well be broken up. Its unsustainable as it now stands as events have proved. But how is the TRNC's immediate neighbour likely to react, politically & financially? They've always been a fairly astute financial bunch and even today the Bank of Cyprus is well respected, but everything they touch & deal with is linked to the Euro..... Then there's their membership of the EU with all its rigid rules. If they were to jump ship (rather than waiting to be pushed) and come out of the EU & the Euro they wouldn't any longer fear the red-tape legislation that has (currently) proved so helpful to the TRNC. Just a thought....

andre 514


Joined: 31/03/2008
Posts: 1163

Message Posted:
04/05/2010 00:14

despite the naiive enthusism I felt for emu at the start.

it may be that by drawing in some of the less-developed states it is unstable



there is a saying that if you owe the bank a thousand quid and can't pay you have a problem

but if you owe a thousand million then the bank has a problem...



like the banking crisis of last year,

it is yet another case of paying off the debts of the charlies responsible, hoping they don't reoffend



the eu/imf/greece deal will alow the money through in dribs and drabs and their cuts must be real

cannot see the eu collapsing but it may have forgoe any common monetary system,

but can keep the "good bits" ie euro graveytrain, the beauracracy, internal free trade, c.a.p.,

...and its french-dominated foreign policy



andre