David McWilliams had an interesting column in yesterdays indo. While he is on the right track on what caused the economic downturn we are now facing
In economic history, no sovereign country has faced a property downturn, inspired by a ridiculous credit binge, resulting in such huge personal debts without devaluing its currency.
Look at what is happening in the UK and the US. Both countries find themselves in the same bind as we do. They thought that they could get rich by buying and selling houses to each other using other people’s money.
But the idea that we ditch the euro? How much will that cost us?
Businesses will not be for this, they are the ones that will have to change signage, equipment etc. But also the government will have to print a new currency and all the things like that. Its just not economically feasible to spend money on a new currency when we have only had the current one for a (comparable) short period of time.
Germany has lived out a recession that has lasted over 10 years and now Germany is quickly becoming (again) the economic powerhouse of Europe. We will have to weather it out. Our business will have to take “the recession on the chin”, just like Germany did.
While I agree that the Euro is a part of the problem it is something we will have to stick with. It will keep us competitive vs the UK, in terms of dealing with the continent.
While I dont know much about economics, (Its one of the reasons I flunked College) I dont see how ditching it will help us!