No Peter, we are not about to see the end of the Euro!

Peter Oborne, in today's Observer is the latest Eurosceptic to predict the downfall of the Euro. Remember all those voices who predicted the single currency wouldn't last the year?

He suggests that because  Spain, Greece and Ireland have high levels of unemployment- the first two had high levels when the joined the Euro-there will be popular movements to elect governments that would return them to their legacy currencies. 

PhillipD's comment says all one need to say on this bit of Oborne nonsense:

'The reason the viability of the Euro is not discussed is because it simple isn't a big issue in those countries. Pulling out of the Euro is not an option for any of the weaker countries. The reason is simple - it would take months of physical preparation (printing, legal agreements, etc) to create a new currency. As everyone would know that the reason for a new currency was to devalue everyone would simple withdraw all their spare cash and lodge it in a German bank. The result of course would be economic collapse for the country that tries it - this is understood by everyone in Greece, Ireland and Spain. Thats why there is no discussion outside crankish circles in any of the problem countries about the Euro - it is simply a non issue for purely practical issues, and ascribing it to some obscure arguments about 'democracy without a demos' is just verbiage on behalf of Mr. Oborne.

The Euro will only break up if there is a desire among the key central countries - Germany, France, etc., to do so - and there isn't an iota of evidence that they are under any pressure, politically or economically to do this. This is why the article is economically illiterate - it does not reflect the views of any mainstream economists, or even any respected economic viewpoint from either the left or the right that I am aware of - it is purely wishful thinking from an anti-EU perspective.'

End of argument.

Comments

[Peter Harvey]

The Mediterranean countries are used to being slighted by northerners, who like to refer to the PIGS (Portugal, Italy, Greece & Spain). A further point is that Greece and Ireland are so small that their overall effect is insignificant. A financial crisis in Rutland isn't presented as a threat to the existence of sterling.

It is generally held here that the euro saved Spain in the financial crisis. The peseta could never have held its own and would have gone straight down the pan, so thank heaven that we had the strength of the euro behind us!

The euro is now strong. Sterling has lost 30% of its euro value in two years and there is talk of it going down below parity -- and lo and behold, the British media start rubbishing the euro. What a surprise!

[Peter Harvey]

PS Your picture is nice but ... the original idea was to have the euro symbol as a glyph (unchangeable design) with the shape and proportions shown. However, the graphic designers got to work and there are now variations for all fonts.

[Tony]

many of the ex-pats are morphing into pats.the €/£ rate is turning their paradise into hell!
they forgot currencies can go down as well as up.
t

[Peter Harvey]

Sure. I know some people here who are having problems with falling income. Currencies certainly can fall but the recent collapse of sterling has been greater than many people could have expected, especially after the nationalist hoo-ha in Britain about how the euro was doomed from the outset.