| Topic: | Re:Re:Oh wise ones - why can't we just scrap the Euro altogether? | |
| Posted by: | Alan Clark | |
| Date/Time: | 25/06/15 18:02:00 |
| 1. It creates a lower cost of transaction across European borders - so helps support and grow European business 2. It has the potential to act as a counter power-currency to the all powerful dollar (which rules many trade and financial transactions) and the increasing influence of the renminbi 3. It is massively convenient to travellers and holiday makers - thus encouraging outside-Europe travellers and business people to more than one Europe country (all good for business and influx of money) 4. It is the definition of a free trade area - reducing barriers for trade (and reducing the fees charged by banks for cross border transactions) 5. Ultimately, it is the logical goal of a single market (and if the EU is not even a single market - what is it?) There are other reasons. (e.g. it has come about that it benefits larger, more export focused countries by being low at the moment - so cheaper to sell a BMW in the US). There are massive disadvantages too. Mainly, a large complex economy with a single currency also requires complete internal freedom of movement (of people, workers and money). So this is all good across the 52 US states. But seems to be a problem for many in Europe. But lastly and personally, I was delighted to ditch the 10+ currencies I typically had to travelled with and use the euro in so many places, from Helsinki to Rome. |