Is the EURO in danger of collapse?

[R1Geezer]

These guys certainly think so, scroll down to "Toxic investment #3"
http://www.fsponline-...omotionID=2147067298&

[woofgang]

scare mongering advert IMO

[softlysoftly]

it has probably been discussed before on here but with so many posts on quizzes and puzzles,i thought i would start this,with the advance of dna,and the call for a dna data bank,could we not bring back hanging,would we not be 100% sure of their guilt,i would prefer a serious answer or 2 without any smart arse comments. thankyou

[softlysoftly]

oops sorry about that,r1geezer

[jake-the-peg]

Do you even know who these people are?

Or is the simple fact that they agree with you enough?

[netibiza]

Serioulsy though, what would happen if the euro collapsed in all the European countries?

[R1Geezer]

I have not offered a view, they are a financial magazine that seem to be quite respectable. Have you a view on this jake?

[Gromit]

Money Week have been spouting this for years, here is four years ago.

http://www.moneyweek....-set-to-collapse.aspx

I suppose if they say it regularly enough, it might just happen. Personally, like the banks are not allowed to fail, the Euro will not be allowed to fail, though some countries may leave it.

[jake-the-peg]

You're new avitar doesn't express a view?

The fundamental problem with the Euro is that the conditions and controls backing it up were not properly enforced from the start.

If Italy or Grece had been threatened with or even expelled earlier when they'd failed to keep their public spending in agreed levels it would have been a lot stronger.

However the fundamental Irish problem was rescuing the banks and bringing them onto the public books.

This would have crashed the Irish economy whether they were on the Euro or the Punt - it is not a fundamental problem with the Euro.

Had they not been part of the Euro they could have devalued as we did, true but that wouldn't have been enough to save them as the amount of debt was so huge.

The big question is the terms of the bail-out.

If they are sufficiently strict this might actually strengthen the Euro by enfocing greater common controls.

There are a lot of paralells to the English bailing out of Scotland after the Darien affair and the subsequent act of Union

[R1Geezer]

My view on the EU is well known and my avatar compliments yours nicely! I was referring to my view on potential collapse of the EURO. It may surprise you to know that I am not against a European currency, I am against what we have now which is a mish mash of politics and psuedo econmics masquerading as a currency and innevitable consequence of putting the cart before the horse. You cannot have a real common currency without first merging economies, central banks etc. I have always been against integration but if we must have it then at least do a proper job of it.

[rov1200]

Even though the Euro is in the doldrums you don't see the rise of the £ in tandem. Its not the Euro we should be worried about but our own currency!

[Sqad]

rov.....good point.

Germany and France would never let the € collapse as it is "their baby" so to speak and it has a Political significance more than anything. If "push came to shove", Portugal, Spain, Ireland, Greece would be jettisoned to save the €.

rov...you have a good point........if there was such a panic in the € zones, then why isnt it plummeting against the UK pound as one would have expected.
I feel that the answer might be that the markets are still wary of the UK economy.

[thedaveformula]

Well, William Hague's 2001 'Save The Pound' manifesto campaign suddenly doesn't seem so laughable.