Ok, my first blog, and i'll jump right into the deep end and cover the Eurozone debacle a little.
I'll try and keep this short, but its quite a complicated topic, so here goes! Basically my view on the Eurozone 'experiment' is that it cannot work in its current format, and will end up being an efficiency drain on all members that use the single currency.
The weaker countries will continue to suffer as a result of using a currency far too strong for their economies to stomach. Just look how bordering countries like Turkey are prospering from a huge influx of tourism that would otherwise be weighted more towards Greece, Italy, Spain etc if their currencies were more competitive.
In contrast, very strong Economies like Germany's are benefiting as the euro is weaker than the DeutchMark would be if they had kept their old currency. Small wonder there has been a huge boom in German car sales since the Euro's inception, they have a significant export advantage.
Will cover more on this topic in my next blog :)
How do you think this will impact the UK economy?
ReplyDeleteOur recent choice to distance ourselves from the eurozone via the vito on further fiscal integration, was probably a good one. My personal belief is we are best off as far removed from that situation as possible. The IMF obviously thinks the same as they think we have better growth prospects than the eurozone.
ReplyDeleteThat said, even though we are slightly decoupled we are still likely to suffer a knock on effect from stagnant growth in the eurozone.