If the Euro is to be saved, and whether it's worth saving is problematical, then there'll have to be a two-tier Euro.
There are serious countries in Europe -
These countries would have the S (for Serious) Euro.
Then there are countries where the attitude is enjoy today, have another drink, it's party-time, don't take things seriously, don't work too hard, have a mistress or two, life is a cabaret.
For these countries there will be the F (for Fiesta) Euro.
Those countries joining the S-Euro will have to stick to the rules about the proportion of GDP for which they can raise debt, the amount of budget deficit they can run and their trading balances.
Those countries joining the F-Euro can get into as much debt as they like, reduce the retirement age to 45 and run deficits as high as they like.
And everyone gets the Euro they deserve.
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Funny you mention S-Euro countries but not F-Euro ones :D
I personally hope Euro will not break in two, as I am on the side of those who want to work less hours AND earn more money...
Do you think UK situation is better than moderate F-Euro examples?
I think we're somewhere between the two, Djonne, we're ashamed to admit we don't enjoy the pleasures of life, and we're ashamed to admit we don't subscribe to the Protestant work-ethic. In an English sort of way, we would get no pleasure from being F-Euro or S-Euro..
Could it also be that simply the "S-Euro" banks played a bit too risky game with the "F-Euro" economies? Isn't it a bit too easy to say people from the south are partying and from the north working hard? Concerning Scandinavia I would rather say they are leaving on petro euros and working rather less than in the so called F-Euro countries.
Yes Romain you're absolutely right. It was the banks who made these loans to the F-Euro guys, and it seems the bankers won't have to take any pain for making these bad loans. Instead the governments will take the pain of the loans and pass the pain on to their people in the form of austerity packages. The governments will then ask the bankers, who have escaped the consequences of their bad decisions, to please not give out huge bonuses to their staff. And the bankers will ignore the governments and pay the bonuses. It is horribly unfair to people who rely on government services and who will be hit by the austerity packages. If it results in social unrest, or even revolution, you can understand why.
wrt banks, bad decisions and consequences.
A former public sector worker, recently laid off, goes into the job centre in Penzance and sees an ad for volunteers for a Firing Squad to shoot some bankers.
He goes up to apply for the job and is promptly told to go John O' Groats
Why, he says, is that where the job is?
No, comes the reply, that's the end of the queue!
Ha Ha, Dr Bob, very good