If the euro broke up, UK would be back in current account surplus If the euro broke up, UK would be back in current account surplus
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    Default If the euro broke up, UK would be back in current account surplus

    If the euro broke up, UK would be back in current account surplus – Telegraph Blogs

    Britain's current account deficit with the rest of the EU has burgeoned since the euro was launched – from £5.5bn in 2000 to £52.4bn by 2010, or from little more than a fifth of the total to 143pc. Yes, that's right. Ex the EU, Britain would have a current account surplus.

    By far the biggest part of this deficit is with Germany, our biggest trading partner in Europe, accounting for around 44pc of our current account deficit with the rest of the EU.

    Lets get the break up going

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    An equally likely outcome would be that we would still buy the German stuff because we have lost the capability to manufacture it here - we would just have to pay inflated prices when the new DM soars.

    Leaving us with less money to buy home grown stuff.

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    Quote Originally Posted by centurian View Post
    An equally likely outcome would be that we would still buy the German stuff because we have lost the capability to manufacture it here - we would just have to pay inflated prices when the new DM soars.

    Leaving us with less money to buy home grown stuff.
    Not entirely true; there's lots of manufacturing and assembly in Britain, but it's often done by foreign companies. However, some German products like their cars for instance are now arguably Veblen goods; the more they cost, the more people want them, partly as a status symbol, partly due to the reputation for quality (whether that reputation holds up against Japanese or Korean cars is another matter and a very boring discussion for the petrolheads).
    And what exactly is wrong with an "ad hominem" argument? Dodgy Agent, 16-5-2014

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    Quote Originally Posted by centurian View Post
    An equally likely outcome would be that we would still buy the German stuff because we have lost the capability to manufacture it here - we would just have to pay inflated prices when the new DM soars.

    Leaving us with less money to buy home grown stuff.
    Or the DM would soar making it more viable to build things here and sell them in to germany... The only reason Germany produces stuff now is because they got all the countries surrounding them to become equally expensive.

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    And it looks like Iceland was the fastest growing developed nation in Q1.

    Iceland

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    Quote Originally Posted by bobspud View Post
    Or the DM would soar making it more viable to build things here and sell them in to germany... The only reason Germany produces stuff now is because they got all the countries surrounding them to become equally expensive.
    Not only that but by being a member of the Euro their currency enables them to be highly competitive.
    Let us not forget EU open doors immigration benefits IT contractors more than anyone

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    Quote Originally Posted by centurian View Post
    An equally likely outcome would be that we would still buy the German stuff because we have lost the capability to manufacture it here - we would just have to pay inflated prices when the new DM soars.

    Leaving us with less money to buy home grown stuff.
    Not really. For example, Britain is now exporting more cars by value than it imports:

    UK car-makers on course to break all-time record by 2015

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