Re: Re: Demise of the Euro closer? – Ignore this if it bores you


@Costacraver wrote:

Absolutely right – and that’s why Mandelson is right, as Chris says to remind us we should be looking for a good opportunity to join. If anyone saw Michael Portillo’s programme earlier in the week, he found a factory full of young German’s desperate for us to join. It clearly wasn’t what he expected to hear. He offered them Deutschmark or Euro and they all chose the Euro. With Greece etc in the Euro, the burning building analogy is hard to refute. Without them, it would be a different matter. Interesting question for this forum is whether Spain would be in or out of a new “hard” Euro.

Of course the German factory workers like the euro – it makes their exports considerably cheaper than if they went back to the DM. Germany has done rather well out of the euro so far, at the expense of several other nations, so asking them if another victim would like to join the party is a bit pointless (especially one with an devalued currency). Ask the Germans whether they’d like a fiscal union within the eurozone and you might get a different answer.

As I’ve mentioned on here a few times, we already have the data to see what would have happened if the UK had joined the euro in 2002. Interest rates would have been half of what they actually were during the boom years, the credit bubble would have been much, much bigger, and the UK would not have been able to bail out the banks with printed money. We would not even be having this conversation right now because the UK would have already been ejected from the euro, swiftly followed by several other countries.

To suggest that the UK join the euro when we’ve got the facts staring us straight in the face is just crass. The only reason people like Mandelson want the euro is because they see themselves as part of the EU’s political elite, destined to rule alongside a load of “Sir Humpries” without having to bother about inconveniences like accountability (remember Mandelson was forced to resign twice when he was a member of the UK parliament)