

Where do you stand?

Has the euro turned the corner?

We have our doubts, which we explain in a leader this week. In the end, we argue, the euro’s survival rests on the political support for greater economic and financial union. What do you think?

View results after you vote
Voting opened on Sep 14th 2012

Readers' comments



"Joint effort is better than single effort"feeling this many European nations came forward to give birth to euro.On first step euro showed it"s result.
But on second step of Euro fiscal debt on problem came up with.But strict on currency issue is ok.As we at inflation & global financial crisis.Restriction on issue of currency not bad.at count of domestic &international reserve currency to get issued.
Euro has it"s debt burden,Joint banking operation is not resulting.Though money market hit 26 month high on august to be on watch.
Pricing plays a very big role.On financial product in order to attract customer,some product modification needed.
demand & supply equilibrium on issue of currency to be with.
allocation of resource & proper utilization of resource is prime factor.


It will be very difficult for euro zone countries to recover especially with the current economic policy imposed by Germany on all European Union countries which agreed to join the fiscal pact. This policy is mainly based on severe austerity measures but how long can one tighten the belt? From economic point of view tightening the belt means that there is gradually less and less money on the market which directly leads to decreasing demand for goods and services and as a result to decreased profits for the producers of these goods. In order to cut costs the producers start to reduce their staff or their staff's financial capabilities either by laying off people or by paying them less money. In consequence the unemployment rate starts growing forever which with economic stagnation underway is impossible to handle. This in turn leads to further decrease in demand and profits. The next step for the producers who try to struggle for survival is to limit their expenditures on investments and development which in an obvious way further hampers the overall economic development. The conclusion: austerity measures should be used in an economic crisis only to a certain degree. If we exaggerate with them we may soon end up in a vicious circle as we can see happening now. And the more vicious is the circle the more difficult it will be to get out of it.

Abdelkader Hamdaoui

The turmoil that had such a knock-on effect to almost all of Europe and the consequential ripple effect felt around the world was the ramification of an economic empire building “Marshall” plan of French and German making; giving of massive monetary support to their Southern neighbours that though strategically thought through failed miserably to take into consideration their lack of resourcefulness and business-friendly infrastructure to make productive use of the financial windfall. ENTREPRENEURSHIP, apart from making the world a better place, is the only way to innovate Europe back to life and in improving the economic climate. However, the solutions to the crisis in the euro zone can be turned only when there's a drastic overhaul of the entire state apparatus, antediluvian laws and stifling bureaucracies that's hitherto been so conducive to the ingrained corruptive practices, interwoven dishonesty and detrimental nepotism of some member states.

the world turned upside down

The Euro can only last if people think they can definitively live better. But right now only politicians are smilling ,not people unemployed or even whose with low wages (many more "poor workers"). I remember in Eastern world they used to say "they pretend to pay us ,we pretend to work".But only first part is right because if you do the second one you are fired,and nowaday......Now in continental Europe after 50 no way to find out a job,but not in UK if you are fine ! Mentalty have to change and first of all in politic : to drop privilege,and if someone is corrupt he must be forbidden to come back in politic. Things have to change,I'm afraid they will change not quietly,because politician doesn't want to give up their feudal rights on countries !

the world turned upside down

Euro was made to get things at lower price because of no more change taxes between EU countries. We all saw realty at first glance everything at least 5 or 30 % up from old to new one currency.A very big bargain for retailers who only have to round number over the customer's wallet.Now consumption is at half mast because many people don't have enough money even to live decently when at work,not to think when retired ! Wealthy peoples,little bit scrooge with workers, think about the first the first step to give a little more wage or you prefer to die all together ?


In 2005 I wrote an article "bottomless well", describing the future of the euro zone
(Many laughed, but there actually predicted the crisis in Greece)
Germany and France insist on preserving the euro zone, similar to a poor person inviting the whole neighborhood for a meal at his own expense
The idea basically was a terrible mistake, now remains only to fall from the tree carefully

PPP Lusofonia

A single currency, without the ability to adjust exchange rates, requires nearly balanced trade among the member countries.
Intra-Eurozone CAB balances continue diverging, and diverging trade trends make a single currency unsustainable.




Euro is still in big danger. It was ill conceived and further ill managed. I keep hearing a lot of people about grater fiscal and banking integration. It will never happen. Differences between EZ countries are still huge. In terms of competitiveness. Even in the now existing countries there are huge differences between regions and all the money thrown out by the EU for the development of these regions made no difference. At least not significant ones. What makes one think it will happen in the future with the then integrated countries. A much better approach in my view would be a core group remaining in the EZ: those with similar competitiveness (Germany, Netherlands, Finland, Austria, to stay in the EZ. The rest with their own currencies until they are really ready for the competition with companies in the afore mentioned countries. Otherwise its gonna be a mess. Germany and co. were happy to have the other let down their custom taxes but were not interested how they will cope with competition. Now bailing them out its not attractive. But it happened under the "wise" supervision of the idiotic authority of European institutions: EC European Parliament and so on. A huge, impressive failure. Germany and co. were very happy pocketing the huge profits from the new markets, eliminating competition and so on. This is why I think EZ should only include competitive countries. The rest can do very well with currencies pegged to the Euro until competitive. I've seen EU countries (Eastern European) already talking about bringing in investors from China, Gulf, and so on against the opposition of Brussels and Germany. Until EZ becomes more open minded and fair, any forced integration I fear, is only a catastrophe in the making and detrimental to the idea of European unity.

PIIGS can´t fly

This € was a grave mistake as TE pointed out at the time.

One currency for countries as disparate as Greece and Germany or Finland and Cyprus was always going to be a tall order. But the differences widened very considerably when we all had the €. Whereas Germany went through a difficult patch with very unpleasant reforms, no wage rises etc, the southerners enjoyed cheap lending, enlarged their state sectors, raised wages and did just about everything to make their countries uncompetitive.
Now the prodigal sons are coming home. They are broke and expect support. But do they seriously try to understand how they brought this disaster upon themselves and what they must do to deserve to be helped? That is not the impression most Northerners have: France for example wants control over German money with few strings attached. Instead of making his country competitive Mr Hollande tries to weaken Germany´s dominance by weakening Germany. And it was the French more than anybody else that got us into this mess because they wanted to end the dominance of the Deutschmark and the Bundesbank.
This aim at least they have achieved but at what price?


The euro is still (too) strong: holding at 1.30 against the dollar, I am starting to wonder whether euro-crisis is the proper term.

In my opinion the ECB is the key institution to grow stronger as a union. It is the ECB that brings together the 17 countries that have opted for a shared currency and thus a shared destiny. I believe fiscal integration and banking union within this group should be a top priority. After that, the European Union (including perhaps even the UK) can decide whether they want to follow.

The ECB has adopted a new role effectively mutualising euro sovereign debt and making quantitative easing American style possible now. With this new role and debt being a lot lower than for instance the US, I have great hope for the 17 (shortly 18) euro-countries.


Where do you stand? Has the euro turned the corner? Again No. This week in Germany the left, right and nowhere found a political consensus. The German left “Die Linke” and its former boss Hr. Lafontaine and his girlfriend, an attractive lady, Fr. Wagenknecht are out in the cold for inferring the return to the D-Mark, such has been a demand of the right wing bunch of economists who formed the AfD who complimented Hr. Lafontaine for support. As the election approach Fr. Merkel will find it difficult to experience further euro quacks.

Where do you stand? Has the euro turned the corner? Again No. To learn economics from a farmer. Lock the farm gate so the cows cannot eat the grass in the field which must be saved. The farmer can feed his cows by buying hay made from the grass in the field. The Euro group austerity measures make no sense. When a company makes 3000 people redundant because of austerity money is not saved but transferred to someone else. The 3000 people have to receive money from somewhere be it insurances, the state, the banks or whatever so effectively money is not saved but just gives fuel to the “ perpetuum mobile” of austerity. That every bank saver must cough up there saving to save a bank is the same as saying “we are all equal by cremation”, Ik heb verteld nooit te vet .


It would be interesting to know how the voting pattern has varied over time. I was a marginal 'No' last September, would have been a marginal 'Yes with a bit of luck' by the end of the year, and am a despondent 'No' now. The three main negatives for me are the cackhanded 'management' of the Cyprus bail-in, German per-election inertia and a suspicion that Hollande is going to give up on deficit-reduction (which may be good for France, but not for the Euro).


Europe would be a lot better with further integration within both the political and monetary union. Without any fiscal integration, states that are currently in recessions like Greece and Spain must increase spending at the expense of other countries in the union through fiscal transfers or loans. Austerity is not the answer and it hurting the entire union as a whole.


Europe would be better with each country having thier own currency. An example: Farmers and market owners in Romania and Spain can not affort the Euro rates that Farmers in Germany enjoy. The Econemy is not the same accross the board and bailouts do not help the growth in Europe.


Europe is much stronger together than apart, their just needs to better integration between the economies. A banking union is surely needed after the chaos of the Cypriot bailout showed what not to do. A share of the debt burden of the weaker economies across the union would help the create stability. But really its political stability that is needed for Europe to turn the corner. If France and Germany can start working closer again, as the two biggest economies, then it could helping kickstart a period of closer ties within the EU.

Right now however, they seem to be drifting apart, as I mention in a article I wrote on the divides appearing in the EU. Please read and let me know what you think.


BrendanZeGreat in reply to CDrafall

Maybe we need to stop looking at Europe like its a bunch of different and separate countries and look at it more like a bunch of states who are European and should look out for eachother. In the United States, I as a Californian, would have no problem bailing out Arizona if they had financial problems. We're a nation, maybe that's what Europe needs to strive for.

CDrafall in reply to BrendanZeGreat

Europe is a long way from being united. Germany is really the only country surviving in the euro. I live in Italy now and would love for them to leave the euro. Everyone talks about bailing out Greece, but Italy will be the next followed by Spain. Eastern bloc counties like Romania and Albania are way behind the power curve as well. Corruption, failing economy and disgraceful social services keep these counties from ever being considered. Bulgaria was declined this year again and their prime minister just resigned because of protest from outrageous power bills. England is even going threw their own housing crisis... Lastly, Europeans don't get along as well as everyone may think. It is mid-night here and I am half awake writing this... I could go on with analogies all night, but I hope you get my point.


As long as weak government and a lack of charismatic leadership continues in Club Med, the Eurozone's evident democratic deficit will not force its breakup. Adopting the Euro was, and is still, a one way ticket. Leaving it in the midst of the present political chaos is to choose the greater evil. It may take another decade, but the EU will eventually enforce fiscal stability and growth rules and then create a fully functioning Central Bank.. As for the UK that's a different matter.


Monetary union of completely diverse countries, economies and cultures will never ever work, so the Euro will never turn the corner.

CDrafall in reply to guest-leaalao

Agree!! Try and be a Romanian, Albanian or Russian and apply for a job in Italy, Germany or Spain... Their is a reason why their is corruption and organized crime in Europe. No diversity and no legitimate jobs. Italy has more eastern bloc criminals then it does mafia....

Just Dennis

These "last minute" weekend crisis meetings continue making both markets and the citizenry nervous. Solving these problems by committee does not appear to work. Can no one see this?


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