Property Investment Blog – the end of the eurozone? Not quite . . .
I thought it was time to weigh in and give my opinion about the what should happen to the euro single currency model. After all any investment education needs to consider the much larger economy as a whole.
I actually think it's a failed concept.
It started with the best of intentions, but the fact that you have so many different economies based on so many different products, commodities, cultures, and languages means it is very hard to provide a one-size-fits-all.
If you see the latest results from the Eurozone you'll see a German economy growing at 2.2% and the Greek economy diving at 1.5%. It's hard to justify having the same monetary policy working for both countries. In fact, when you factor in Ireland, Spain, Portugal, Hungary etc. you start to get an idea that Big Brother cannot really control all the children, nurture the slow ones nor control the fast ones… The one- size-fits-all has never worked for any family.
Add to this the sheer cost of the European Parliament and very quickly you can form a case for breaking the Eurozone up.
Now I am a believer that free trade is a concept we should be working towards.
Now they did try and attempt to even out all of the economies and this certainly has brought up the standard of living in many countries which is also great; but at what cost?
Now my feelings are that we need to wait to break up the euro until we are on more solid global recovery, to try and even consider it now would send shudders through the financial community. In any case these decisions shouldn't be made from a position of weakness, they should be made from a position of strength which will take a few years yet.
So let's break up the euro, but not quite yet…
The one thing I know is true… thank goodness we didn't join the euro… we could have had a much worse recession than we had…
As to whether they will break up the eurozone… well we'll see what the powers decide!
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Live with passion,
Brett Alegre-Wood
