Quote:
Originally Posted by Chris
It's not good at all. The longer they keep the Euro on the crash trolley trying to jolt it back to life, the longer the PIIGS have to grow and overtake it. The Euro *is* the problem. They can either dispense with it now, which would cause a train wreck, or else they can dispense with it when they no longer have any choice in the matter, in which case it will be like a nuke going off. Sadly it looks like we're heading for the latter.
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Or they can stagger on? I don't think the Euro dying is a foregone conclusion. Greece will probably go but there has been plenty of time for their debts to have been written off anyway, the risk to other European banks will be limited and the Eurozone will probably be better without them. Italy and Spain have both had successful bond auctions which have brought the price of that debt down from the dangerous levels of a few months ago. The immediate danger of the domino effect has passed for now, the ECB's debt buying plan has eased the crisis.
If it continues like this then they'll be in a position to decide if they're going to become more closely integrated with each other. That decision will probably be what decides it's future but there is still a route where we'll still be using Euros in mainland Europe come 2020.