Thursday 29 April 2010

The beginning of the end of the Euro?

I am no financial expert but like most of my generation I know how to budget and operate within my means. By the looks of it this cannot be said of many of the nations which form the European Union. Of course as the EU has never passed an audit it is difficult to quantify the shortcomings of its members.

Having said that they most certainly have shortcomings! The Greek economy has recently had a 'junk' level credit rating which probably sums up their pfofligacy but I don't get it. How on earth can a modern day country operate, within the EU, and rack up such a disastrous debt? Didn't anyone, anywhere anticipate that they were following ruinous policies? I think that it speaks volumes for the incompetence of the EU officials because Greece is not alone.

Spain has also had its credit rating reduced and ther are persistent rumours that Italy, Portugal and Ireland also have financial problems. It would appear that many of the EU countries are leaning heavily on France and Germany which kind of distorts the Union. Oh and of course the UK who although out of the Euro contributes magnificently to the upkeep of the EU (£7.6 billion per year).

It is largely because of this that we are increasingly having to borrow and print money to survive. Of course this cannot continue but Gorgon (whose speciality is said to be the economy!) will not tell us how bad the situation is and none of the major parties can come up with a plan to restore sanity to our economy. Perhaps we too are in as big a mess as the countries that I have just mentioned.

I do wonder what will happen to the EU dream if their common currency is destroyed by socialist incompetence. It is all entirely predictable because most of the leading players in the EU are power mad idealists. The know how to spend money but rarely wisely.

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