Eurozone going to collapse?

[sasguru]

Well they can probably bail out Greece for a year. What happens after? The bond markets show Porugal will be targeted next.
When will the German taxpayer say enough is enough and refuse to bail out lazy and profligate South Europeans?

[Moscow Mule]

When will the German taxpayer say enough is enough and refuse to bail out lazy and profligate South Europeans?

17th August 2011

[sasguru]

17th August 2011

Are they having an election then?

[AtW]

The only thing that's going to collapse is yourself disappearing up your rectum

[sasguru]

The only thing that's going to collapse is yourself disappearing up your rectum

I can understand why you're bitter.
My economic predictions have come to pass. Yours haven't.

HTH.

[Moscow Mule]

Are they having an election then?

Nope, I made it up. As good a guess as any...

[suityou01]

I can understand why you're bitter.
My economic predictions have come to pass. Yours haven't.

HTH.

Any predictions on this one then Sas?

[HairyArsedBloke]

It will not collapse without a fight, or rather the EU politicians fighting to stop it collapsing. It will not matter the cost, if it is the best thing to let it go, or even if it was inevitable. There is far too much political capital tied up in it. Which is a delusion - most of the population of the EU don't want it, or would let it go if it would enable the countries to economically recover.

[Mich the Tester]

Are they having an election then?

Could be interesting. The German constitution is quite strict about fiscal prudence, as they learned from the collapse of the Weimar constitution.

Any aid to Greece, especially if it requires German borrowing, will have to be put to the Bundestag (lower house) and the Bundesrat (higher house) and there needs to be a convincing case that this aid is to prevent serious economic problems for the German federation.

I’ve though for a while that the Euro should include only those states with a long standing reputation of fiscal discipline (Germany, Holland, Denmark, Luxembourg, Austria). That would make it an attractive option for Britain too, except that just at the moment, I wouldn’t want that. The Euro in my pocket is already endangered by Mssrs Berlusconi, Sarkozy and Mr Papacantbalancethebooksoulos; I don’t need Brown in on the act too.

Article 110 [Federal budget and Budget Law]
(1) All revenues and expenditures of the Federation shall be included in the budget; in the case of federal enterprises and special trusts, only payments to or remittances from them need be included. The budget shall be balanced with respect to revenues and expenditures.

Article 115 [Borrowing]
(1) The borrowing of funds and the assumption of surety obligations, guarantees, or other commitments that may lead to expenditures in future fiscal years shall require authorization by a federal law specifying or permitting computation of the amounts involved. Revenue obtained by borrowing shall not exceed the total of investment expenditures provided for in the budget; exceptions shall be permissible only to avert a disturbance of the overall economic equilibrium. Details shall be regulated by a federal law.

[expat]

Could be interesting. The German constitution is quite strict about fiscal prudence, as they learned from the collapse of the Weimar constitution.

Any aid to Greece, especially if it requires German borrowing, will have to be put to the Bundestag (lower house) and the Bundesrat (higher house) and there needs to be a convincing case that this aid is to prevent serious economic problems for the German federation.

I’ve though for a while that the Euro should include only those states with a long standing reputation of fiscal discipline (Germany, Holland, Denmark, Luxembourg, Austria).

I should add in Belgium too (as good a record as Luxembourg) and France (unexpectedly sound). So it's almost the Six minus Italy, though I'd see no problem with Austria or Finland either, not to mention Sweden if they wanted it.

That's obviously what should have been the Eurozone: anything more is Europolitics, an attempt to grow the European Union. I can understand why, there are powerful attractions to the idea of being the advanced democratic civilisation that can save everybody, especially after seemingly saving Spain and Portugal by bringing them into the democratic fold. But it doesn't work with the money, and everybody knew that while Spain probably swung it on merit, just, and Portugal was tolerable, Greece's membership was just a brazen conspiracy on all sides.