|
The great thing about the Euro is that it simplified inter-European trade and fostered a mini-boom for the better industrialized nations there.
The bad thing is they can no longer adjust the currency ratio between countries which traditionally been used to correct problems like this. They can't simply lower the value and watch as investors flood in to turn a profit.
The EU will definitely have to either set very stringent GDP/Debt requirements or figure out some other way to prevent these. If Germany is asked many more times to bailout the countries, they're very likely to drop the EU.... which would effectively kill the organization.
__________________
"Smite the rocks with the rod of knowledge, and fountains of unstinted wealth will gush forth." - Ashbel Smith as he laid the first cornerstone of the University of Texas
|