Well thank goodness we didn't go into the Euro Zone, or we would be having to bail out Greece on top of all the other problems. My view is that they have expanded "Europe" too much too quickly, countries like Greece and Polland should have been deferred till a time that a more cohesive relationship had evolved between the mainstream countries.
However, I think that the relief will be short lived, the problems of the global economy are going to hit every country and whichever of the parties gets in here, they are going to have to tax and cut far more than they are admitting to in the pre-election build up.
Plim :sad:
I agree too. The main issue with the Eurozone is the admission of weak economies. The other option for Greece would have been to leave the ERM and devalue its currency. Whilst unpalatable it may have been, I would have favoured this option if I were them.
Thanks for those two posts. Interesting about Greece leaving to devalue which would no doubt be a short term fix - not sure what the longer term implications would be though.
Plim
See all the riots and violence in Athens today.
Wonder if it could happen here...........depends on how deep and long our "Age of Austerity" (sp?) is.
John & Shel
I dont know very much about international ecnomics. I have lived through a few recessions and watched them closely. I dont think this one has hardly started and the way way worst is yet to come. The saddest thing is that huge parts of the country haven't recovered form the 1980s yet.
I shall be too busy earning a living to riot
Not to mention an increase in our contribution to EU finances...and the first 5% of all the VAT revenue that goes to the EU.
Don't wish to quote all the above...so just saying:
Think the financial problems...are not wholely Gordan Brown and new labours fault. It is a worldwide situation..as can be seen from Greece....and now very fast..Portugal...Spain and Ireland and slipping close !! All i was answeing is who the people were that were going to riot.
As for the cuts.....well for me its like the lawn....its been raining for two weeks..the grass needs cutting.....but if you do cut it....you will just rip the grass up....you need to wait till the sun comes out and its dry.....Yes we need to reign back and cut, the question is..when and by how much. As I say....if it was my job, and I had worked at it, I wouldn't be best pleased when I was thrown on the dole, in what will be a very difficult employment time.
Very pleasing to have so many meaningful replies to my orig thread. I think we will know quite soon if we are also going to go into a downward spiral - I think we should just avoid it, but you never know!
Plim :sad:
The cost of bailing out the Republic of Ireland's stricken banks has risen to 45bn euro (£39bn), opening a huge hole in the Irish government's finances.
More trouble on the horizon?