Article

2003-10-07 Europe

Euro increasingly unpopular in core EU countries

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Posted by Steve 2003-10-07 11:54:16 AM|| || Front Page|| [1 views since 2007-05-07] Top

#1 This id due to poor marketing. If they would have done a study before hand they would have known to name it the Happy instead of the Euro.

Posted by Superhose 2003-10-7 12:34:11 PM|| 2003-10-7 12:34:11 PM|| Front Page Top

#2 The US went to one currency when the Feds absorbed all of the debts of the various states. Perhaps the European Union should consider a similar angle if they are serious about forming a single nation.

Posted by Yank 2003-10-7 12:37:46 PM|| 2003-10-7 12:37:46 PM|| Front Page Top

#3 The poll also showed that French voters would reject the euro, but by a much more slender margin

Not to brite are they? The French are one of the major beneficiaries of Euro economic policy.

Posted by Shipman 2003-10-7 12:46:03 PM|| 2003-10-7 12:46:03 PM|| Front Page Top

#4 Doubtful poll: 29 percent in favor only? I seriously doubt that. Polls conducted in Germany see it rather at a 50:50 level.

Merely asking people: Would you like your Deutschmarks back? just brings out a sentimental answer. You have to tell people what it really means if they get their deutschmarks back. A real vote would look differently, probably a very tight race.
That in Germany Euro acceptance would be lower than in the UK is not credible.

The Euro has a bad image for the following reasons:

1) Except when they travel consumers don't see a real advantage.
2) In the first months there were price hikes which led to people not spending. Because people didn't spend the industry got in trouble. Because the industry got in trouble recession set in. Because recession set in the deficit grew. Deficit is not allowed to grow over 3 percent which means no tax cuts (which are needed). Now Germany and France break the stability pact which may ruin the stability of the Euro in the long run (negative effects currently outweighed by a weak dollar). If France and Germany can't keep the discipline, the smaller countries won't either.
3) When the Euro was introduced, it went on a slippery slope from $1.16 to 84 cents, thus creating the image of a "weak" currency. Now that it is back to initial heights its unwelcome strength is seen to hurt exports. Can't really win on this one.
4) Polls show that most Germans still calculate in DM, which is rather easy to do as one euro is nearly 2 marks. The French have a harder time as one euro is about 6,5 francs.
5) For the French the Euro was invented to check the power of the Bundesbank. With the curent weakness of the German economy that initial fear has largely collapsed. Now they find out that the ECB follows BuBa policies while the Banque Centrale largely followed orders of the French government.

Whether the Euro is good for us or not is hard to say now. We'll know in 10 years or so. If Europe manages to get its political shit together the Euro will be a good thing. If not...

Posted by True German Ally 2003-10-7 2:50:47 PM|| 2003-10-7 2:50:47 PM|| Front Page Top

#5 A common currency requires that a participating state hands over control of its monetary policy to some centralized body. If you don't mind someone else making decisions for you, someone who has to consider the other states' needs as well, then I guess a common currency is ok. It also simplifies trade. But if you consider that a separate monetary policy can be used to "fine-tune" an economy, and that the one-size-fits-all argument simply doesn't hold, than a common currency is not something you should strive for. There have been discussions of creating a common North American currency in 1990s. But nothing has come of it, and for good reason.

Posted by Rafael 2003-10-7 3:01:34 PM|| 2003-10-7 3:01:34 PM|| Front Page Top

07:45 Jarhead
05:37 Ed
04:43 Bulldog
01:42 Jeff
01:19 Tresho
00:18 Anonymous
00:11 Bomb-a-rama
23:34 Not Mike Moore
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23:18 Mercutio
23:17 tu3031
23:10 Not Mike Moore
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23:05 Super Hose
22:58 Not Mike Moore
22:55 Frank G
22:50 snellenr
22:50 Super Hose
22:37 Frank G
22:34 Tibor
22:32 Cyber Sarge (VRWC CA Chapter)
22:26 Frank G
22:24 Jarhead