Europe have one big problem the euro currency

[legendbtc]

For now, in my opinion, the euro still has hope of becoming solid and sustainable. The ease of spending on travel or cross-border commercial transactions without the need for currency conversion has quickly helped this currency gain the support of the people. The euro became one of Europe's most significant successes and is now the second strongest currency in the world. The euro creates convenience, reduces costs for Europeans and businesses, And unifies the European economy into a bloc. The EU needs to come up with policies to strengthen the single currency. The euro will be a tool to enhance economic independence and self-reliance in trade and finance. The euro will support Europe's economic, business, and financial freedom. They will no longer have to depend on the US dollar.

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[eightdots]

Your words are not completely accurate. There are hundreds of advanced European heavy industry that the world needs and imports, in addition to tourism, agriculture and banking services.

But the problem with the euro is that many countries (including the European countries themselves) do not want it and want the dollar instead of it. Unfortunately, Europe is subject to the United States, and therefore they cannot bypass the dollar and adopt the euro as a base currency instead of the dollar.

Europe is a great economic power, but it loses its role and power because it falls under American hegemony. I think that the United States exaggerates the Russian threat to Europe to keep Europe under its control.

There are hundreds of imported materials and the euro is not weak as mentioned. Not wanting the euro is not a new issue, but it does not negatively affect the euro.

As you said, American hegemony keeps the dollar strong.

I think Russia's threat to Europe is an important issue that needs to be addressed. Russia and the USA are the quarterback states. The back of what these states say is usually full.

Despite all that has been said, I don't think there will be anything that will devalue neither the dollar nor the euro. They continue this way. Power does not change hands easily. It is even more difficult, especially when it comes to money.

[Wend]

The euro will support Europe's economic, business, and financial freedom. They will no longer have to depend on the US dollar.

How will the Euro support the European economy when it is the prosperity of the economy that determines the value of their currency? If their economy collapses due to inflation, their currency will weaken a lot, and that is what is happening with the EU. How will the euro help them get rid of their dependence on the US? I really don't know what you are talking about because currency is a representation of the economic strength of a country, a bloc.

[TimeTeller]

All those explanation, you forgot about tourist. European countries have always attracted millions or even billion tourist every year. Outside of Tech and Car stuff, tourism is one of the biggest export of European Countries. And those tourist will exchange their currency into Euro.
Other thing is that you might have valid point that Euro only sell for a luxury stuff, Sports Car, Designer Clothing, etc. But like it or not rich people will still buy those luxurious goods.

Regarding tourists, haven't you heard about the latest trend: many European cities are tired of tourists and are actually trying to get rid of them. Cities like Amsterdam and Venice are taking action to stop tourism. They are closing the cruise ship terminals, restricting river cruises, converting hotels into offices, imposing earlier closing times for clubs and pubs etc etc. IMO, this is the road to self-destruction. Stopping mass tourism is a really bad idea for the reasons you mentioned above.   

They will know the impact of tourism to their economy when it will be gone.
However, there will always be tourists. I don't think they can totally eradicate the presence of it.
Unless, the government will not entertain visitors and block their entry to their country.
Which for me, is hard to do. We have seen this scenario during the pandemic days only.
And now, we are returning back to where we were. So mass tourism will always be here but maybe they can put some restrictions on it.

[Synchronice]

@stompix How did you miss this thread, someone says bad about Europe.

But when it come Europe there is nothing so euro value might fall very soon becouse world don't need euro and nobody dont want junk eu debt bonds really when times getting harder people want food and commodities and natural resources but europe don't provide nothing to the world so no demand for euro currency either.
So If euro IS so useless what they might do with euro well they Will lower the rates and Will do super qe and print out Even more money and inflation in Europe Will go to Even much higher then it IS now.
Euro Will be printed a lot probably and exvhanged by smarter guys in to usd or gbp before the collapse of euro currency.
I Will sell most of my euro currency becouse i feel it Will start lose value fastest since no euro currency demand on the global markets.
Off course this euro value falling Will create BIG debt and BIG buildings in Europe but at the end europe Will be pretty much like soviet union when the Money printing stops and they cant hide euro with junk bonds and dirty swaps anymore then euro currency holders Will be victims of hyperinflation becouse currency Will lose value so fast If there is no demand by other nations and countries.

I really wonder where you are. By the way, is the UK doing better after BRexit? And how can you really say that Europe does provide nothing? By the way, I want to remind you that EU countries remain top in food security index, European countries tremendously improved medical field and invented a lot of medicines, German engineering still remains the top. Europeans conquered the world, improved the quality of life absolutely everywhere and still Europe does very well, people here are hard workers and have a high quality of life. Have you really ever been in Europe? How can you say that we produce nothing and bring no value to the world, how can you really say that. It drives me crazy when people like you come in EU countries for asylum.
Google EU countries, google what each of them produce.

[pawel7777]

I really wonder where you are. By the way, is the UK doing better after BRexit? And how can you really say that Europe does provide nothing? By the way, I want to remind you that EU countries remain top in food security index, European countries tremendously improved medical field and invented a lot of medicines, German engineering still remains the top. Europeans conquered the world, improved the quality of life absolutely everywhere and still Europe does very well, people here are hard workers and have a high quality of life. Have you really ever been in Europe? How can you say that we produce nothing and bring no value to the world, how can you really say that. It drives me crazy when people like you come in EU countries for asylum.
Google EU countries, google what each of them produce.

Europe =/= EU. And not all EU countries are in the Eurozone. The EU started of as a free trade agreement between sovereign countries but is evolving into some strange, totalitarian monstrosity where, little by little, more competences are taking away from each country and ceded to the EU. It's like creating a super-state (United states of Europe) but without asking people for opinion. I don't think they even pretend to care about democracy anymore, plus there are full of double standards.
Because of overregulation and implementing weird laws (that benefit the strongest countries, mainly Germany), the Eurozone was one of the worst performing regions in terms of economical growth in the last decade.

[Sayeds56]

Your opinion is wrong. The EU economy is the third largest in the world, after the USA and China. On the other hand, I do not see the currency, the euro, as a bad thing. It is not as sought after as the dollar, but there are many developing countries with weak currencies where they accept euros as well as dollars, although not as many. It is certainly much better than most currencies in the world.

You are absolutely right, while European union is one of the top economies of the world but it ranks third after USA and China. European union is indeed a significant economic power house of the world, its combined GDP places it among top global economies. Euro is official currency of Euro zone and it is widely used not only among member countries of European union but also in international trade  and finance, and it ranks second after US Dollar.

I think the debit crisis started in 2009 had a significant impact on Euro's value against other major currencies and  caused overall economic instability in Europe.

[Synchronice]

Europe =/= EU. And not all EU countries are in the Eurozone. The EU started of as a free trade agreement between sovereign countries but is evolving into some strange, totalitarian monstrosity where, little by little, more competences are taking away from each country and ceded to the EU. It's like creating a super-state (United states of Europe) but without asking people for opinion. I don't think they even pretend to care about democracy anymore, plus there are full of double standards.
Because of overregulation and implementing weird laws (that benefit the strongest countries, mainly Germany), the Eurozone was one of the worst performing regions in terms of economical growth in the last decade.

Man, definitely I know that Europe and European union are two different things, sometimes I just use EU or Europe in both cases.
What was the point of Germany? To conquer Europe. Honestly, who is in charge of EU? Germany. With or without a war, the aim is achieved. Germany or France are by no means good guys, especially Germany.
Does Germany benefit from EU and Euro? Logically, we can say that poor nations push down Euro while Germany pushes it up, i.e. at the moment being in EU is expensive for Germany but at the same time, there are tremendous benefits and the major benefit is control on so many nations. EU on another hand is the united states of Germany. If language was not a barrier, I guess it would be called the USG or VSD (die Vereinigten Staaten von Deutschland).
I won't talk about trades, EU market, one currency and so on, because everyone mentions them when they talk about the benefits that Germany gets but there is another bigger benefit: What do you think, who does manual labor? German people? No, people from poor EU countries like Hungary, Romania, Czech and recently from Spain and Italy, they do jobs that no one wants to do. That keeps things cheap inside the country because no German person will work in warehouses on €12.82 per hour. Another benefit they get is that some German people, who own apartments, just rent it and live on that income. The situation for people who have houses in this country is like: Foreigners come in your country to work, you give them house, they leave half of their salary in rent, do all the shitty jobs and you live off of that. I don't say that this is something to be proud of, just saying how the reality looks but this situation exists in every rich nation but it really is a very smart move from the country: Create good economy and then let foreigners work for you while you get all the money and have fun.

So, democracy doesn't exist. No one is a kind. But let's be honest, if every EU country was united under Germany or France or UK like the states of the USA, would it be bad for them? Germany managed to become N4 economy in the world after WW2. This means that country and people are capable of things. I don't really want to disrespect anyone but just imagine, if we move every German people in Romania, will this country be still poor? Or will it turn into a rich, capable and powerful country?

I know I went tooooo far, pardon me, idk why did I went that far but don't really want to remove such a big text
Btw I think that Eurozone is one of the worst performing regions because of the influence of the USA. It's not like that EU is on it's own, the influence of the USA is there.

[Flexystar]

Oh yeah since hundreds and god knows how many years Euro is Euro with decent valuation so far. Have you seen other nations with values so low that if they are supposed to carry 100 EURO worth a cash then they will need entire backpack to do so. I am not targeting any country in negative ways but for the sake of comparison leave the Euro out of discussion. This really doesn’t seem right to even say that this currency will go down with the time just because they don’t have oil or other raw materials to make money. They make money, they make lot of money. As stated in the first post itself tourism is the biggest stake while IT is another followed by many other streams.

[Shortmaster]

The European economy is still the largest in the world. Not to mention its large tourism incomes as Europe have a lot of places for tourist to enjoy and visit. Moreover, the number of luxury businesses in EU that is booming in the market currently. Hence, your points, in my opinion holds no bearing.

There is no demand by other currencies for euro so much.
Yes europe printed a lot money economy is boosted and debt burden on people are highest.
That's all true but all this euro currency not backed by real things like USA oil and Even russian oil power to protect currency value.
If currency is large like euro then at least some high demand service or value should be backing up the currency without talking Even about commodities.
So it's Simple the euro needs to be backed on something real not just with bonds loans and debt anyone who knows about finances knows it's dangerous for euro currency value.

[mindrust]

Every FIAT currency is in trouble, not only Euro. It is because FIAT has no hard supply cap like bitcoin. Every FIAT currency in history died because of this reason. People tried to use gold backed currencies but we failed because we cheat. Bitcoin is honest. The supply is limited and there will never ever be more than 21 million bitcoins in existence. If people dump their FIAT for BTC maybe the central banks will take notice and stop printing useless papers but that's wishful thinking. We know they can't stop printing because it is their job to do so.

[aoluain]

Every FIAT currency is in trouble, not only Euro. It is because FIAT has no hard supply cap like bitcoin. Every FIAT currency in history died because of this reason. People tried to use gold backed currencies but we failed because we cheat. Bitcoin is honest. The supply is limited and there will never ever be more than 21 million bitcoins in existence. If people dump their FIAT for BTC maybe the central banks will take notice and stop printing useless papers but that's wishful thinking. We know they can't stop printing because it is their job to do so.

Absolutely, I'm not sure why the OP is focussing on the 3rd largest currency? so yea
raise the point of backing it up with something but that means central banks wont
be able to print their way out of/into trouble so easily so while we in general can complain
I'm not sure backing it up with some commodity or asset is going to be popular with
decision makers.

There is no demand by other currencies for euro so much.

There is quite a demand for € inside the eurozone though!

[DrBeer]

The euro currency is in trouble.
Why becouse world dont need euro to buy commodities or goods much.
World needs good germany good cars but can Do without them.
The euro currency value is high becouse of temporary rate hikes it creates only huge short term inside demand for euro inside europe but not in the world.
So USD we need world needs becouse oil and it's reserve currency still.
Gbp pound Also on high demand by other countries on forex markets.
China currency Also on high demand.
Russia currency Also needed highly becouse of natural resources in russia what other countries need.

But when it come Europe there is nothing so euro value might fall very soon becouse world don't need euro and nobody dont want junk eu debt bonds really when times getting harder people want food and commodities and natural resources but europe don't provide nothing to the world so no demand for euro currency either.
So If euro IS so useless what they might do with euro well they Will lower the rates and Will do super qe and print out Even more money and inflation in Europe Will go to Even much higher then it IS now.
Euro Will be printed a lot probably and exvhanged by smarter guys in to usd or gbp before the collapse of euro currency.
I Will sell most of my euro currency becouse i feel it Will start lose value fastest since no euro currency demand on the global markets.
Off course this euro value falling Will create BIG debt and BIG buildings in Europe but at the end europe Will be pretty much like soviet union when the Money printing stops and they cant hide euro with junk bonds and dirty swaps anymore then euro currency holders Will be victims of hyperinflation becouse currency Will lose value so fast If there is no demand by other nations and countries.

Well, that's a very ugly way of putting it.
In fact, the EU is the world's largest economic player. It's not just cars and reliable household appliances. It is also technology, aviation, the military-industrial complex, high semiconductor technology, agro-technology, medical equipment and technology. And all of this has a value, and in Euros - in Euros the cost, work, taxes,....
The Euro is also an ideal tool to support the weaker countries in this union. Imagine - how would Europe support Hungary, for example, if Hungary kept its Forints, Germany kept its Marks and France kept its Francs? 
So I'll be brief, sorry, but you are very wrong....

[stompix]

@stompix How did you miss this thread, someone says bad about Europe.

Stompix was sunbathing for 3 days on the Dalmatian coast in this ravaged Europe with the beaches full, the clubs and bistros, the airports full, the roads full of people enjoying a holiday. Everyone sees doom and gloom I see spending and people moving around more than ever.

Spain has just broken the 2019 pre-COVID record on arrivals and people talk about how shitty Europe is, but everybody wants a piece of it.
https://www.travelwires.com/may-2023-witnessed-spain-achieving-a-new-record-with-8-2-million-tourist-arrivals
I wonder why millions of people are drowning and getting killed by human traffickers to end up in this region. Must be the bad life we're having compared to Africa.

Russia currency Also needed highly becouse of natural resources in russia what other countries need.

One euro was worth 69 rubles at the start of 2020, it's now worth 99.
I want more of this trouble when the thing I have actually increased in value!

OP's understanding of the European economy is very flawed. Euro is the 8th most powerful currency in the world. https://www.cmcmarkets.com/en/learn-forex/16-strongest-currencies-in-the-world

That's a bad way to look at a currency, it takes just the value of one unit compared to the other.
By that logic, the Turkish lira is better than the yen and the Pakistani rupee than the South Korean won.

Anyhow, another topic on how the euro and the EU will die for the thousands time, but this time it's for sure.

[Synchronice]

Well, that's a very ugly way of putting it.
In fact, the EU is the world's largest economic player. It's not just cars and reliable household appliances. It is also technology, aviation, the military-industrial complex, high semiconductor technology, agro-technology, medical equipment and technology. And all of this has a value, and in Euros - in Euros the cost, work, taxes,....
The Euro is also an ideal tool to support the weaker countries in this union. Imagine - how would Europe support Hungary, for example, if Hungary kept its Forints, Germany kept its Marks and France kept its Francs?  
So I'll be brief, sorry, but you are very wrong....

No, EU is an enemy. These shit EU countries, including Germany, France, Netherlands, Switzerland and other ones offer free education to people from poor nations, give them possibility to increase their qualification and then return in their country to improve living there and establish an EU standard in their countries. Can you imagine how evil it is? Can you imagine that these evil Europeans are working hard and pay 42% of their income in taxes to benefit not only local but people from 3rd countries too.

@stompix How did you miss this thread, someone says bad about Europe.

Stompix was sunbathing for 3 days on the Dalmatian coast in this ravaged Europe with the beaches full, the clubs and bistros, the airports full, the roads full of people enjoying a holiday. Everyone sees doom and gloom I see spending and people moving around more than ever.

Spain has just broken the 2019 pre-COVID record on arrivals and people talk about how shitty Europe is, but everybody wants a piece of it.
https://www.travelwires.com/may-2023-witnessed-spain-achieving-a-new-record-with-8-2-million-tourist-arrivals
I wonder why millions of people are drowning and getting killed by human traffickers to end up in this region. Must be the bad life we're having compared to Africa.

I already booked the trip in Spain and wanna visit Portugal too. I wanted to go in Russia or in Belarus in August but it's only for elites and super wealthy people, so I decided to visit my poor Barcelona to spend a week in poverty (I call it a rest). Ahh, I don't know what to do, this shit work-life balance that we have in Europe is so hellish too, ohh my.

C'mon, C'moooon guys, wake up to reality. Hard-working EU countries are doing well, quality of life is very high, work-life balance is very good, free healthcare and quality of service is good, not super good but really good compared to the other countries. My only wish is that please don't worry about Europe, let's not talk about Europe, let us be left alone in poverty, please don't remind us that we are poor, it hurts our feelings.

[Sayeds56]

There is quite a demand for € inside the eurozone though!

Indeed, the volume of trade within Eurozone countries is remarkably high, in year 2022 the total trading volume recorded was more than 4 trillion Euros, which is very impressive and reflects fundamental strength of Euro. In my opinion the main factors driving the depreciation of Euro are as follows:

1- Heavy dependence of European countries on Russian oil and Gas has become a concern, particularly due to ongoing Ukraine war which added uncertainties to economic outlook of Eurozone, and impacted value of Euro.

2- Another significant factor is slow down in economic activity in China, that has also adversely affected Eurozone, as China being its largest trading partner.

https://cepr.org/voxeu/columns/euro-weakness-2022#:~:text=Three%20key%20factors%20have%20been,(Fed)%20and%20the%20ECB.

[Hydrogen]

The euro isn't backed by commodities, tech, natural resources, manufacturing or exports. This leads to questions of how to sustain their relatively high standard of living.

Americans have silicon valley, oil and natural resources. Tesla, apple, google, microsoft, twitter, facebook, etc. The highest statistic for newly minted millionaires and billionaires in the world.

While europe has no lack of desire to compete. Their road is an uncertain one.

[DrBeer]

Well, that's a very ugly way of putting it.
In fact, the EU is the world's largest economic player. It's not just cars and reliable household appliances. It is also technology, aviation, the military-industrial complex, high semiconductor technology, agro-technology, medical equipment and technology. And all of this has a value, and in Euros - in Euros the cost, work, taxes,....
The Euro is also an ideal tool to support the weaker countries in this union. Imagine - how would Europe support Hungary, for example, if Hungary kept its Forints, Germany kept its Marks and France kept its Francs?  
So I'll be brief, sorry, but you are very wrong....

No, EU is an enemy. These shit EU countries, including Germany, France, Netherlands, Switzerland and other ones offer free education to people from poor nations, give them possibility to increase their qualification and then return in their country to improve living there and establish an EU standard in their countries. Can you imagine how evil it is? Can you imagine that these evil Europeans are working hard and pay 42% of their income in taxes to benefit not only local but people from 3rd countries too.

Time to impose the harshest sanctions against the inhumane EU regime ! What kind of sadism is this - to give free education, to teach to create, to create, to generate profit ! And then also try to raise the standard of living in the country of the person who survived these terrible inhuman tortures with free excellent education and care about his future !!!! How long will the world tolerate such horrible abuse !?

Long live freedom from happiness, knowledge, skills, desire to want and be able to live well ! 

[kryptqnick]

As others have mentioned, the European economy is very large, as there are several big high-income countries that have EUR as their currency. There's also a perceived importance which Europe and EUR get, probably largely thanks to the history of colonialism, and a perceived value in other countries is important to determine the foreign demand, which in turn significantly affects the success of a currency. EUR is doing fine, successfully managing to reduce the inflation that was hit in 2022, and I don't think we're in for a relapse. If anything, I think EUR will actually get stronger because there are countries that may still adopt it at some point.

[pawel7777]

... but it really is a very smart move from the country: Create good economy and then let foreigners work for you while you get all the money and have fun.

Very short-sighted and you can already witness this approach is kicking the rich countries hard in the ass. Mass immigration always means drifting into a low-trust society, and for some strange reasons, the "poor immigrants" after some time are no longer satisfied in cleaning toilets and wiping asses in elderly care homes and want more than that. Not to mention that a large part of what meant to be a cheap labour (aka waves of "Syrian" refugees from Iraq and Afganistan) is not even interested in working at all or in learning the language. They prefer handouts.
Every single country that accepted mass immigration failed to assimilate them, so now they have no choice but to declare themselves post-national and multicultural and launch hard censorship to prevent people from calling things as they are. We can see the results of that in crime-stats, racial tensions and identity politics or in events like the recent riots in France.
It's almost like the money should not be the most important thing in the world and GDP is not a great metric for happiness.

if every EU country was united under Germany or France or UK like the states of the USA, would it be bad for them?

If you became a slave of a wealthy gentleman who would provide you safety, good food and expensive cloths - would it be bad for you?
It's a question of priorities.
To me a country is to a nation what home is to family. I'd much rather be poorer but sovereign. There are always some ways to acquire wealth, but once your country/nation is decomposed, there's simply no going back.