Is this the end of the euro as we know it?
As the trendy Europeans face the fading of EU fashion, we have to ask if you believe the European Monetary Union is going to fail. I think it is clear that without one government, this group of many chiefs cannot effectively support their currency, and so I believe they have prematurely created the euro. As national parliaments voted to decide whether to assist Greece and the eurozone or not, nationalistic debate and naive political strategy surfaced. The fact that such legislation nearly halted support of the euro system should have clearly illustrated the failings of EU ideology. Without one government, you simply cannot have one currency!
Over the weekend, the sluggish European Central Bank (ECB) finally grasped the levity of the situation and put forth more than the lip service we have grown accustomed to from lazy European politicians. In US central bank-like fashion, the ECB finally announced it would buy government and private bonds in historic fashion to support the euro currency. Still, it was only but last week that the ECB did nothing when declaring its latest policy, and the actions it announced since were called "a step too far." The thing about that is that the free market decides what it needs, not politicians. Likewise, citizens of countries decide what they will accept, and so Greece burns.
In a recent Topic of Debate, we said Greece should tax tourism and target tax evasion, and it was argued by bright reader, who understood the importance of tourism for Greece, that such actions would be naive. My answer was that this is not a black and white issue, and that pain could not be avoided, just minimized. I must ask, how much tourism will Greece have now that its capitol is on fire and government near collapse? I believe it would less costly to add income generating fees to touristic expenses than to scare away tourism altogether.
This forum is asking another question though, and we would like your thoughts here and on the Greek topic above. You may click the link above to comment on the Greek problem. Below, you may click through the "Discuss Topic" tab to tell us what you think about the euro issue:
Is the Euro Failing?
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