Quote:
Originally Posted by Dextro
Maybe, maybe not. The only sure thing it would happen would be a MASSIVE (and I mean 1930s massive) depression with virtually every economy in Europe collapsing. Yes, even those not in the Euro and yes, even Germany.
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Can't see a Euro collapse happen. The currency has worked fine up till now and protected the continent against shocks. Leaving the currency would only expose a country to more instability due to exchange rate fluctuations and frightened/opportunistic markets. Pretty much every Eurozone country is in most situations better off with the Euro in the long term. Only way I can see any country leave is when populist sentiments get out of hand.
What hasn't worked so far in the EU is responsible lending and borrowing by the banking/financial sector and some governments (so what else is new).
The medicine is what gets both execs and politicians worked up. If banks/firms are to big to fail, they are to big to exist. Also, higher reserve requirements means lower profits (or more to the point: bonuses). More responsible goverments require more monitoring from ECB/Bruxelles, which frightens the national parlements.