EURO ZONE in house fighting continues........

bigheadxx

Malcolm. wrote: »

Like you, I'm not certain what will happen. The political pressures within the poorer eurozone countries is likely to become intense (not being able to use currency fluctuations to devalue the debt they've accumulated). However, there's no precedent for exiting.

My (complete finger in the air) guess is a core set of countries continue with the euro, and some weaker peripheral countries exit.

If a countries debt is denominated in Euros then by leaving the Euro and devaluing its currency it will owe more to its creditors, not less. This is what happened to Argentina in 2002 which had previously been pegged to the dollar at 1:1, consequently it defaulted on its debt.

It is therefore desireable for Germany and the other big EURO countries to keep the weaker countries in.

diable

Wookster wrote: »

I believe the expression in Germany for such action is "schiesse".

I think you meant "un der shitz"