Eurobonds a bad deal for Germany. In europe we have different economies, which leads to different interest rates, when governments seek money on the market. For example, Germany pays about 2.5% and Greece 21%. The concept of eurobonds is to make it possible for all 27 members to pay the same interest rates (5.5%) when they want to finance their government programs. Great idea for losers like Greece, Italy, Portual and Ireland. Bad deal for Germany and France who contribute 47% to the financing of governments that have gone bad ie Greece. What this means is that Germany is being punished for being sucesssful and Greece is being rewarded for being a loser. If this nonsence should continue, then I advocate Germany leaving the european union and euro currency and become a normal naiton like Norway or Switzerland. We work hard and pay off our debts only to be rewarded with bailing out Greece again and again. Perhaps we should just buy Greece?
If our governments, followed the laws that they inacted then Greece would never have joined the euro zone in the first place. In addition, provisions clearely state that no state or group of states is permitted to assume the financial burdens of a state in need, neither directly nor indirectly. Example, the european central bank bought billions of worthless greek bonds, that would be an example of helping them indirectly. It looks to me as if the banks and insurance companies are the main benefactors of the euro-zone. When times are good the make billions, when times are bad they still make billions. No risk. Doesnt sound like capitalism.
the northern european countries can exit and become strong currencys on their own like the swiss franc but in the long run it would hurt them because the Euro is stronger than the US dollar when the world markets are good. Germany believed in a european union similar to the United States where close neighbors are united to prevent future economic and military uncertainty.. when the union fails its terrible times for the parts who have to pay the bills like with the US states who bail out the poor states but when the union is strong its good for the longer term of the union.
yep! the french and the germans have only got themselves to blame their were entrance rules whereby nations had to meet certain economic criteria before joining the euro greece didnt meet them, but they let them in anyway, as the french and germans were so obsessed with their little United States Of Europe project. actually, the french even cooked their own books to meet eurozone entry requirements.
