xenon13 wrote:
The Wall Street Journal agrees with meQuote:
... It is the euro zone that is committed to sound money, fiscal consolidation and structural overhauls designed to free up the supply side of the economy... Of course, the euro zone is not adopting this hair shirt approach entirely out of choice but because governments and the central bank are constrained by the strict rules surrounding membership of the single currency. Left to themselves, most national governments would go down the (money printing and deficit spending) route in the blink of an eye. In this respect, the euro is like the gold standard, keeping governments on the path of virtue. Indeed, the euro is a tougher constraint on governments because it has replaced national currencies, making it virtually impossible to quit. Old-fashioned orthodoxy has been hard-wired into the euro zone.
So you see, I am right. The EU is an extreme right wing de facto gold standard type of place and democratic governance is completely suffocated by the way by it. Oh, how some love to torture powerless people in the name of Virtue...
Well the fact is that Europe isn't under 1 government, and the fiscal policies don't match. Other problem is Greece owes too many people too much money. They've spent too much and they can't even pay the interest on their debt now unless they start cutting costs.
Greece isn't the only EU country that is in fiscal trouble, France is having some problems as well. Right now looks like Britain was smart not to go to the Euro.