An Economist Predicts The Downfall Of The Eurozone

[Febo]

I disagree with this view, competitions make countries specialized and become efficient.

Yes and our competitors are in India, China and USA.  EU counties spend half the money USA spends for army but our strength is not even 30% of USA. Simply because every country develops own weapons. In USA Utah dont make own fighter jets and Florida their own. They focus resources in one place.

We need to understand Euroep was a continent of constant wars for 1000 years. Most countries was constantly in war. When they end one they started new. Only in last century after EU was formed that changed. We need patience and Europe will achieve great things. 

And in that case, Brexit can be proven to be working well for Britain as the country will not anymore be dragged by the weakness of Euro

UK never used Euro. UK uses GBP. They were never really part of EU. It was the last time for them to decide if they want to be in or out. Being a bit in and a bit out was dragging EU back for decade.

Does that mean that countries which did not accept EUR are not really a part of the EU? If it's so, there's a lot more countries like that within the EU.

No it simply means that countries that dont use Euro cant be dragged by the weakness of Euro. They have their own currency and can manipulate it anyway they want.

[1715445305]

1715445305

[tvplus006]

As long as the Eurozone is supported by such economies as France and Germany, it will remain stable. But this stability will cost the economies of these countries dearly after UK left the Eurozone. It is possible that the COVID-19 pandemic will be the main test of the sustainability of this alliance.

[LoyceV]

We need to understand Euroep was a continent of constant wars for 1000 years. Most countries was constantly in war. When they end one they started new. Only in last century after EU was formed that changed. We need patience and Europe will achieve great things.

What if Europe was at war all the time because we just don't like each other and countries want more power? We still don't like each other but now countries fight about money and it's EU that gains more power. There's a lot of differences between countries within EU. Can you imagine the USA being united if they'd have 10 different official languages?

[bearexin]

It was always obvious that euro zone would have gone down eventually, there are some nations who are awesome at what they do (like Germany and UK) whereas there are always ones who suck at economy (mainly Greece but Spain a bit too) and you are putting them all on the same pot, how could that ever work?

I never believed in it but something this big of course would take decades before it can fall, it has been only 20 years and it is already cracking, UK wants to get out and already out in a way, there will be other nations who will realize that they are carrying the eurozone who will want to get out as well, who could say anything if Germany wants to get out, they are doing much better than other nations so they have to help other nations in order to not lose value on their money, they must be sick of it. Maybe not today, maybe not in 10 years, but eventually this group will disband.

[bits4books]

It will be quite interesting to see if in the near future due to the combination of all current circumstances the Euro zone and the EU itself as a structure will fall apart back. And the first message of this collapse will be the revival of national consciousness of countries that are tired of eternal migrants, micro-Pakistanis and other charms of the modern multicultural world within the EU.
The only thing that is annoying is the possibility of the birth of "European separatism" on the part of migrants who will understand that no one else will feed them or even begin to evict them.

[Febo]

We need to understand Euroep was a continent of constant wars for 1000 years. Most countries was constantly in war. When they end one they started new. Only in last century after EU was formed that changed. We need patience and Europe will achieve great things.

What if Europe was at war all the time because we just don't like each other and countries want more power? We still don't like each other but now countries fight about money and it's EU that gains more power. There's a lot of differences between countries within EU. Can you imagine the USA being united if they'd have 10 different official languages?

USA is not united. There are 11 nations inside USA https://www.youtube.com/watch?v=N0YAR_vsQZ8   They have different culture, but that does not mean they cant have common army and space program.

[Lucius]

Personally, I have never liked the idea of the euro as a common EU currency precisely because of the fact that only one member state that has major financial problems can seriously shake the entire EU financial market. Although national currencies have some weaknesses when it comes to trade between members, they (at least for me) represent one of the basic pillars of a country's sovereignty. The UK has long been a member of the EU, but has never given in to pressure to give up its national currency, which has proved to be the right move, especially in the case of Brexit.

Eurozone is on very shaky feet, but not only because of their own weaknesses, but also because some in the world do not like a strong and stable EU. The official US policy led by Trump is in principle against the EU as such, and they were one of the biggest advocates of the UK leaving the EU. This policy aims to weaken the EU and China as much as possible in order to maintain its dominant position in the world.


https://twitter.com/realDonaldTrump/status/1205368801438707713

[FanatMonet]

The idea with the euro was initially not very well thought out. Because in the eurozone, there are too many different countries. There are such locomotives of the economy as Germany and France, and there are countries that can get defaulted, this is Greece, and Italy is balancing on the brink.

[Lucius]

A new blow for the EU and the eurozone comes from Germany, more precisely from the Constitutional Court of the Federal Republic of Germany which is "assessed that the European Central Bank (ECB) had violated its mandate and exceeded its authority with the government bond purchase program. Also, the judgment states, the ECB must prove the justification of the program, otherwise the Bundesbank cannot participate in it."

In other words, the German court has set itself above European laws and thus set a very dangerous precedent that could be used by some other countries in the future, especially Hungary and Poland, which often disobey various laws and instructions coming from Brussels. What is interesting is the fact that this verdict is the result of a 5-year dispute that was initiated in Germany in 2015 by a group of people (about 1750 of them), and the European Court of Justice ruled in favor of the ECB in 2018.

This decision of the German court resulted with the fall of the Euro against $ for 0.7%.

The euro fell 0.7 per cent against the dollar — its lowest level in a week — and the spread between 10-year Italian and German borrowing costs — a key measure of country risk in the eurozone — widened by 0.2 percentage points to 2.5 per cent.

Additional source : JUDGMENT THAT SHOCKED EUROPE The German Constitutional Court has placed itself above European Union law, now what?