That may be so, but - at the risk of sounding like a 'Brexiter' - at least the UK has its own currency! It can be devalued. The UK has that control and can be competitive. What would happen to one of the EU countries if it voted leave but had the Euro?
They would start printing their own currency. Impossible to keep having the same currency at the same exchange rate if you leave. It's going to end up like Argentina when they wanted to keep a fixed rate with the USD. To be seen who's going to be Argentina and who the USA in that case.
By the way, this is the very problem with the Euro. If you want to have the same currency of (let's say) Germany, you should perform like Germany, or better. If you are less efficient, in any way, you're going the way of Argentina, even if not as quickly. This is why the EU should have one real central government, maybe USA style, and local governments should be like the governments of the US states.
> This is why the EU should have one real central government, maybe USA style, and local governments should be like the governments of the US states.
OK, where's the central government going to sit? In Belgium? No, I don't the Germans or the French would tolerate that if they have to give up their power to act as nations and have their PMs demoted to the role of state governors. None of the member countries would either.
And who among them thinks anything like a Jefferson or a Hamilton? And which portion of the citizenry would even buy into such a debate?
And then there are all the language and cultural differences - actually still a problem for the EU.
Next thing you know, we'd have yet another war in Europe.
Agreed. We shoUld but we won't for a long while. We're not a nation even if it would be safer if we were. But see how young people vastly voted against Brexit. This referendum wouldn't have won in 2026 and there is hope for becoming one nation. 100 years?
Underlying a lot of this is the fact that not everyone can perform like Germany, because, by definition, not everyone can be a net exporter. Germany has benefitted greatly from the Euro to get to its position as a net exporter.
"USA style" not without actual democracy, or you are going to see A LOT more EU-exits ! For example if TTIP imports ridiculous patent rules, I'm voting leave too. Right now the EU is sane, but I draw the line at stupidity.
I've lived in a country with high double-digit inflation through the 1990s (in one year it even surpassed 100%), I'd say be careful what you wish for. People seem to forget that paper money is just that, paper, and is based mostly on trust. Once trust evaporates (even if temporarily) shit's gonna definitely go wrong. But, hey, at least the decision is yours! You've got freedom!
Greece could have had it way, way worse. Ask the Argentinians, ask the Bulgarians who lived through the 1990s (I remember some of them passing the border to us (I'm from Romania) in order to sell whatever they had around the house just to have that extra cash that would pay the bills), ask us, Romanians, ask the Russians who lived through the inflation of the early '90s. You'd get only one answer: If you think things can't get worse than a certain point then you're wrong.
Because they would desperately need to float its value down to regain competitiveness. Now they can only do it by lowering wages through massive unemployment, civil unrest and layoffs in public sector.
Sweden also has it's own currency. Sweden is in a similar situation as Britain, and their closest neighbor (Norway) has never been in the EU. I'm not saying "Swexit" is imminent, but of the northern/western EU countries it is perhaps the most likely.
Countries have used foreign issued currency before; while it's likely that the same impulse that led a country to leave would also lead it to adopt is own currency, there's no fundamental reason that would have to be the case, they could afford one (or more) existing major ) or even minor, though that's less likely) currencies. That obviously leaves them at the mercy of monetary policy focused on others needs, but it may also reduce uncertainty due to lack of established trust in the new government translating into volatility of the new currency.
