3 thoughts on “A solution to the euro crisis”

  1. Posted 20/06/2011 at 15:50 | Permalink

    The Eurozone has breached its own rules so often that nobody should be concerned that — under the existing rules — leaving the eurozone also means leaving the EU. It is obvious that the rules are, shall we say, flexible. Whatever happened to the Stability and Growth Pact? Or the statement that there would be no bail-outs? In fact, so few member-states from the original eleven members of the eurozone actually met all five of the Maastricht criteria to begin with that it was clear even before the euro started that this was a highly political project, not regarding itself as bound by any treaty. Default by several current eurozone member-states is inevitable, whether they remain within the eurozone or not. No doubt there would be political embarrassment if some countries were to leave the eurozone (whether Greece, Portugal and maybe others of the ‘weaker’ countries or Germany and maybe the Netherlands of the stronger’ countries). The only way I can see of avoiding such embarrassment would be for some (or all) of the present eurozone countries now to seek a political union as well as an economic and monetary union (EMU). After all, hasn’t that always been the ultimate desired goal of the whole EU project? The Treaty of Rome did talk about ‘ever closer union’. You can’t make an omelette without breaking eggs; and, if political union were on the agenda, maybe we British could volunteer to be a ‘broken egg’ by taking the opportunity to withdraw from the whole EU project…

  2. Posted 21/06/2011 at 10:17 | Permalink

    I proposed this many years ago after my experience of working for a pan-European telecoms equipment company which priced all its internal trade in ECUs (European Currency Units) – a weighted average of a basket of European currencies.

    It worked excellently internally and saved so much hassle about which currency to trade in.

  3. Posted 27/10/2011 at 12:21 | Permalink

    Debt Crisis – A Layman’s Opinion

    Whereas:-

    The unprecedented debts of the EU and the USA have global implications;
    Future unwinding of the already immense regional QE will have unpredictable global consequences;
    Region specific solutions stimulate new forms of counter-productive financial speculation;
    The present debt crisis is a manifestation of grossly inflated monetary values;

    It is therefore appropriate to seek a radical global solution:-

    Any solution forces economic readjustments;
    QE induced inflation is amenable to management by Governments;

    I propose a Global Revaluation –
    The simultaneous and non-reverting 100% QE of all currencies (whilst perhaps “crediting” recent regional QE exercises).

    E. Soames Esq. 27oct011

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