Comments on: Hungary Given Euro Warning http://fistfulofeuros.net/afem/euro/hungary-given-euro-warning/ European Opinion Wed, 19 Nov 2008 11:58:32 +0000 http://wordpress.org/?v=2.6.3 By: Edward http://fistfulofeuros.net/afem/euro/hungary-given-euro-warning/#comment-1571 Edward Wed, 24 Aug 2005 17:04:13 +0000 http://fistfulofeuros.net/wordpress/?p=1759#comment-1571 "How do you think it wil change?" Sorry I didn't get back to this sooner Mihai, holidays and all that. Basically you need to read around my posts on Italy. I don't see Italy being able to seriously address its problems inside the euro. Italy may *need* to reintroduce the Lira and do a sovereign debt default. After that everything will change. The interesting question is what would the German government do if Italian politicians tried to do a runner, and left Germany effectively holding the can. This could tip the arguments back towards the Deutschmark, but this is hard to see. Maybe I should have said "will the euro still be around in the form we know it now by the time we get to 2010". But nothing here is either guaranteed or excluded. We watch and wait. “How do you think it wil change?”

Sorry I didn’t get back to this sooner Mihai, holidays and all that. Basically you need to read around my posts on Italy. I don’t see Italy being able to seriously address its problems inside the euro. Italy may *need* to reintroduce the Lira and do a sovereign debt default. After that everything will change.

The interesting question is what would the German government do if Italian politicians tried to do a runner, and left Germany effectively holding the can. This could tip the arguments back towards the Deutschmark, but this is hard to see.

Maybe I should have said “will the euro still be around in the form we know it now by the time we get to 2010″. But nothing here is either guaranteed or excluded. We watch and wait.

]]> By: Mihai http://fistfulofeuros.net/afem/euro/hungary-given-euro-warning/#comment-1570 Mihai Sat, 30 Jul 2005 19:46:45 +0000 http://fistfulofeuros.net/wordpress/?p=1759#comment-1570 Your point about euro joining not being in the interests of Hungary is a valid one. What surprised me more was saying "will the euro still be around by the time we get to 2010". How do you think it wil change? While we may whine about it now, I don't think it will go away in the near future. The euro will remain simply because it signifies progress, and it's a very hard decision to abolish such an important symbol that Europeans have been aspiring to for years, despite the temporary economic costs. It would be a big blow, even if only symbolic, to the whole concept of European integration. Your point about euro joining not being in the interests of Hungary is a valid one. What surprised me more was saying “will the euro still be around by the time we get to 2010″. How do you think it wil change? While we may whine about it now, I don’t think it will go away in the near future. The euro will remain simply because it signifies progress, and it’s a very hard decision to abolish such an important symbol that Europeans have been aspiring to for years, despite the temporary economic costs. It would be a big blow, even if only symbolic, to the whole concept of European integration.

]]> By: Peter J. http://fistfulofeuros.net/afem/euro/hungary-given-euro-warning/#comment-1569 Peter J. Thu, 21 Jul 2005 14:52:17 +0000 http://fistfulofeuros.net/wordpress/?p=1759#comment-1569 This is old news. But then the OECD is frequently "behind the curve". Joining the ?uro is not something most people here I have spoken to are averse to - Hungarians don't appear to be quite so emotionally attached to their currency as say the British. What is going to be a problem is the austerity measures required to meet the criteria ..... I have posted on this before numerous times. Personally I think Hungary and indeed the other new member states would be advised to stay out - they cannot legally "opt out", but they can consistently break the criteria which achieves much the same result. This is old news. But then the OECD is frequently “behind the curve”.

Joining the ?uro is not something most people here I have spoken to are averse to - Hungarians don’t appear to be quite so emotionally attached to their currency as say the British. What is going to be a problem is the austerity measures required to meet the criteria ….. I have posted on this before numerous times. Personally I think Hungary and indeed the other new member states would be advised to stay out - they cannot legally “opt out”, but they can consistently break the criteria which achieves much the same result.

]]>