Daniel Halliday
Aug 19 · Last update 2 mo. ago.

Is there a problem with the euro as a currency?

As the German economy approaches the possibility of their next recession, their golden decade thought to be coming to a close, and with the UK’s economic contraction due to brexit, and the US and global stock markets falling, many are wondering if we could be on the cusp of another global recession. But with the scars of austerity measures still fresh on a tense European continent, would another global recession in the current climate destabilise the continent further? In the run up to financial uncertainty, should we be looking back and reconsidering previous criticism of the euro currency? Is it time to re-evaluate the European project or the euro currency before Europe sinks into the new recession? What are the problems with the Euro or what else is at play here?
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Yes, the EU and euro are structured to only benefit certain countries
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Yes, the EU and euro are structured to only benefit certain countries

The model for the European Union has been founded on a sort of regional globalisation, with German manufacturing moving to Eastern Europe, countries such as Romania and Poland, where a skilled technical labour force that can produce for a much lower price/wage. Much of Germany’s automobile parts supply is now actually built in Eastern Europe, as these supply chains ultimately then sell German cars to China and the United States and generate health industry and a strong economy for all in this supply chain, and help secure a huge trade surplus. Countries like France, Spain, Italy and Greece cannot do this as they are large consumption economies, and due to the fact that they cannot devalue their currency and protect the economy, the only option for such countries is a permanent contraction of their economy, leading to austerity. The threat of further recession without addressing this unsound economic model may put parts of Europe in permanent austerity while others continue to benefit. The EU through the use of the euro is functioning as a politically and economically rigged system to benefit the few, be they a few countries economically, or the few of a politically elite class.


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Daniel Halliday
Aug 19