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At present, the euro is legal tender in 19 out of 28 European Union member states, in addition to 5 countries not part of the EU (Monaco, San Marino, Vatican City, Andorra and Montenegro). The Republic of Kosovo also uses the euro, but is only partially recognised as an independent state. https://en.wikipedia.org/wiki/Curren...European_Union
if it works out for 9 other EU countries to not be on the Euro, why can't Greece go back to drachma and not get kicked out of the EU?
I can see how it is bad for inflation/economy if they went off of the euro but it lets them control their own currency again. And if they stay in the EU, they still get some of the economy benefits, mostly trading partners/tourism?
I'm asking since well, I'm an American and don't know why it couldn't work. I don't know if there are any laws preventing this or anything. Or is just just that the EU "wants" to kick Greece out? I mean sure, Greece just missed a bond payment but I don't see how kicking them out is going to help the IMF get the rest of the bond payments back either. If Greece is kicked out, they have even less of a chance to return the borrowed money.
if it works out for 9 other EU countries to not be on the Euro, why can't Greece go back to drachma and not get kicked out of the EU?
I can see how it is bad for inflation/economy if they went off of the euro but it lets them control their own currency again. And if they stay in the EU, they still get some of the economy benefits, mostly trading partners/tourism?
I'm asking since well, I'm an American and don't know why it couldn't work. I don't know if there are any laws preventing this or anything. Or is just just that the EU "wants" to kick Greece out? I mean sure, Greece just missed a bond payment but I don't see how kicking them out is going to help the IMF get the rest of the bond payments back either. If Greece is kicked out, they have even less of a chance to return the borrowed money.
There is no legal or economic reason why it couldn't.
But the EU/eurozone is first and foremost a political thing and the eurozone is sort of like Hotel California (until proven otherwise).
If Greece were to leave the eurozone and make a relative economic success out of it (it could, but it wouldn't because their leadership sucks), then most likely Italy would be next, and perhaps also Spain and Portugal.
And that's the way it should have been since the beginning of the eurozone project, economically.
But the EU/eurozone is first and foremost a political thing.
The core Europeans do not want to kick the Greeks out, they want to kick them in the spine.
if it works out for 9 other EU countries to not be on the Euro, why can't Greece go back to drachma and not get kicked out of the EU?
I can see how it is bad for inflation/economy if they went off of the euro but it lets them control their own currency again. And if they stay in the EU, they still get some of the economy benefits, mostly trading partners/tourism?
I'm asking since well, I'm an American and don't know why it couldn't work. I don't know if there are any laws preventing this or anything. Or is just just that the EU "wants" to kick Greece out? I mean sure, Greece just missed a bond payment but I don't see how kicking them out is going to help the IMF get the rest of the bond payments back either. If Greece is kicked out, they have even less of a chance to return the borrowed money.
I don´t know, if Greece changes to drachma, in my opinion it would be bad because Greece imports a lot of products so it would begin to import with a weaker currency and their industry would probably not be capable of exporting to make the trade balance to be positive
If Greece were to leave the eurozone and make a relative economic success out of it
I was asking why they couldn't stay in the eurozone while going back to old currency. This way it wouldn't mean other countries could leave as well.
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in my opinion it would be bad because Greece imports a lot of products so it would begin to import with a weaker currency and their industry
from what I understood, it would actually help Greece to have a weak currency... around 1/4 or 1/3 of the GDP comes from tourism (or the news articles claim that), so it would make it cheaper to vacation in Greece so people would spend more and vacation longer/more often
And having a weak currency might actually let companies move to Greece for "cheap" labor while having EU as a customer.
we like to harp on China for their currency manipulations... basically weakening it to gain a trade advantage. Why wouldn't this help Greece in the same way?
Legally and technically getting out of the eurozone is not possible but as we know, laws in general are just a hindrance and are therefore broken all the time. When the eurozone was created, nobody foresaw the need to ever exit it at all.
Another reason why Greece can't return to the drachma is that they don't have any and they also don't have the means to print their old currency anymore.
All of the above are just lame excuses of course. The Greeks don't want get out of the eurozone and prefer to keep leeching off of it.
Greece, why can't they go back to old drachma while staying in the EU?
I was asking why they couldn't stay in the eurozone while going back to old currency. This way it wouldn't mean other countries could leave as well.
Say what? Greece could go back to the drachma and stay in the European Union, no problem. But I don't see how Greece could go back to the drachma and stay in the eurozone at the same time.
If Greece were to leave the eurozone, it would set a precedent for other countries to leave the eurozone, namely Italy and possibly also Spain and Portugal.
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Originally Posted by KuuKulgur
All of the above are just lame excuses of course. The Greeks don't want get out of the eurozone and prefer to keep leeching off of it.
Correct.
They could go back to the drachma and stand on their own two feet, but they are spineless. The ones that do have a spine and feet, voted with their feet a long time ago.
Could. The reality is they do not want to leave the eurozone. The living contradiction of Mediterranean Europe in general is that they want core European-style welfare benefits without the core European-style organizational efficiency and work habits, for better and for worse.
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Originally Posted by Majurius
I think that North should have its own Euro!
Correct.
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Originally Posted by KuuKulgur
When the eurozone was created, nobody foresaw the need to ever exit it at all.
The core Europeans, plus Finland and Ireland and maybe Slovakia for obvious political reasons, should have been the only ones allowed in the euro to start with, and later the Baltic countries.
Nobody, except everybody with a lick of economic common sense, foresaw the need to ever exit it at all.
Notice that UK, Denmark, Sweden, Czech Republic, Hungary, and Poland, not to mention Norway (so all of Scandinavia unanimously) and Switzerland (non-EU), have stayed out. Of those, Poland is the most likely to join soon, but for reasons most similar to those of Finland and the Baltic countries.
I have doubts about the political commitment of Romania and Bulgaria, we'll see.
I doubt Greeks want to return to drachma or that will be helpful for their economy. Returning to drachma would be a greater disaster.
Having euro as currency means you have to be productive (both as individuals and nation) and since 2002 to date, the Greeks were in a crisis for not being able to keep up with this request.
They are not guilty, is the damn warm weather that makes them lazy and disorganized and I 'm not sure if things will improve. Would mean the Greeks to change their character, attitude toward life and work which in the physical conditions of their country would be a too great effort.
As for Romania, we are desperate to enter the eurozone and I think will help our economy very much. Romania is a dynamic country, with a rapidly growing economy. Only in Cluj County, as an example, there were registered 46,000 active companies in 2012, at a population of 691,106.
Last edited by CARPATHIAN; 07-04-2015 at 04:43 AM..
I doubt Greeks want to return to drachma or that will be helpful for their economy. Returning to drachma would be a greater disaster.
Having euro as currency means you have to be productive (both as individuals and nation) and since 2002 to date, the Greeks were in a crisis for not being able to keep up with this request.
They are not guilty, is the damn warm weather that makes them lazy and disorganized and I 'm not sure if things will improve. Would mean the Greeks to change their character, attitude toward life and work which in the physical conditions of their country would be a too great effort.
You state a lot of contradictions, quite appropriately, and a bit of non-sense, understandably, in that screed.
Under dynamic leadership, the Mediterranean European countries could look to South Korea or Taiwan as a model, if anything, not core Europe.
But that won't happen, so forget it.
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