With the financial crisis in Europe deepening, with more national bailouts coming, many people, including heads of state like Britain’s GM David Cameron, have begun to wonder aloud whether the Euro has a future. What do you think?
I’ve never really thought the Euro was a good idea. Sure, it had its boom years right after it started, but you’ve got too many disparate economies under a single currency and too many rules and regulations to try and prop up an unstable behemoth on tiny toothpicks. It worked fine with the original Eurozone member states, all of which had fairly similar economic situations, but once countries like Greece started coming in, the whole thing cracked.
From my understanding, Greece absolutely never should have been allowed in, but rules were relaxed, Greece was doing some creative accounting to make it look more viable than it really was, they get the Euro, their currency suddenly is worth way more than before, the government goes on a crazy spending spree with money that never really existed and the underlying issues with the Euro are exposed— that in the long term, it’s just not viable to have so many disparate economies under a single coin.