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What A Great Time To Join The Euro!

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Estonia Unworried By Contagion, Spots Or Rashes

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Miss Estonia 2009. Winner or Loser?

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It is truly crazy that Estonia is entering the Euro on Jan 1st, isn't it?

It's like deciding to move to London during the Black Death.

The sad part is that they have nothing to gain. The Kroon has been pegged to the Euro for years with all the internal devaluation pain that entailed. It's just a case of change the pictures on the banknotes and hand over sovereignty. Oh, and while you're about it, here's a couple of liability countries for you to fund.

Even if the Euro doesn't quite come up to doom scenario expectations, it will devalue. So all the pain Estonians have suffered supporting the currency peg will have been in vain.

There is a huge object lesson for the EU here. Like Ireland, small countries like Estonia and Latvia have a tradition of populations (taxpayers) melting away . . . either through emigration or working in neighbouring states (Estonians to Finland is like Irish to NI or UK) . . . or worse, but most common, migrating to the black economy. That's what happens when you raise taxes to silly levels.

The EU/IMF regimes imposed on Estonia and Latvia encouraged 40% (source) of their populations not to pay to tax. It's hard to tell who's actually unemployed, really unemployed or who just doesn't work there anymore or who works in the black economy. Thousands de-registered from healthcare and benefits because the shadow economy was more worthwile. Irish taxpayers could easily vote with their feet in the same way. (They have previous.)

But anyway, I'm sure you will all wish Estonia well in its 'New Year, Joining The Euro' celebrations and, should you pitch up, the austerity street parties of 20% unemployed will be pleased to welcome you to its bright new future in the Eurozone.

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Yep it's crazy joining the Euro.

40% not paying tax, when they find out what they are having to fund that figure is sure to go up.

:o

I see you picked up on that. That figure kinda sticks out, doesn't it?

(And non taxpayers are even higher in other Baltic countries, 42% in Latvia.)

Does anyone seriously think the Irish are going to hang around to pay 24% VAT or whatever rate is can-kicked into future budgets?

The Euro FinMinisters need a serious reality check.

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:o

I see you picked up on that. That figure kinda sticks out, doesn't it?

(And non taxpayers are even higher in other Baltic countries, 42% in Latvia.)

Does anyone seriously think the Irish are going to hang around to pay 24% VAT or whatever rate is can-kicked into future budgets?

The Euro FinMinisters need a serious reality check.

Yep it's an incredible figure 40% of people involved in the economy avoid taxes.

I assume that tax collection isn't an important criteria to joining the, just ensure you don't exceed 3% deficit spending or if you do hire in some dodgy accountants to move it off balance sheet.

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Yep it's crazy joining the Euro.

Except that it's in the rules if you join the EU, you have to go Euro at some time.

Too late for Estonia to back out at this late stage, but interesting to see this article.

Czechs Whisper Euro Opt-Out

It’s been a bad week for the euro and euro zone. But it might get worse, at least in the realm of public relations, if the Czechs officially turn their nose at Europe’s common currency.

The 12 countries that have joined the European Union since 2004 are all obliged by international treaty to eventually adopt the euro, but with the euro struggling and euro zone countries faltering, Czechs have started a whisper campaign to get a permanent exemption from the rule.

This week, Czech President Vaclav Klaus along with unnamed ministers the cabinet have been cited in local media as saying they’d like to negotiate an opt-out from having to adopt the euro.

WSJ’s New Europe blog Friday asked the press offices of the Czech president, the cabinet and the finance ministry if an opt out was being discussed. In each case, the officials didn’t address the question. Typically, when something is not true, spokespeople have no problem saying ‘no’.

But this silence is ominous.

The Czech Republic would have qualified for euro adoption in the pre-crisis period up to late 2007, but local politicians followed the lead of euro-skeptic President Klaus and said it was not an issue of the day.

Yet despite all the hype of benefits of euro zone membership, the Czechs are convinced their own currency and monetary policy was, is and will remain central to navigating through the modern era of turbulent financial markets, panicky investors and rising cost of debt.

I don't think the EU will have any problem with Czechs opting out at all.

I would suggest all remaining members of the EU slated to join the Euro (11?) will follow suit - even be encouraged to go away. How many tiers can you have.

Failed experiment.

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The EU are rarely keen on handing out opt-outs, particularly if you are effectively opting out of bailing out the PIIGS.

You are correct. (I'm not sure exactly how Sweden managed it.)

However, the EU could change its mind when you consider the other basket cases scheduled to join. Coloured green on the map.

Apart from Sweden (green though opted out), they all look kinda peripheral, doncha think? The Roma gypsies aren't going to be bailing out anyone in years to come.

Never gonna happen.

This map of the Greater Euro reminds me of the Prussian or Napoleonic Empires, just before it all went wobbly.

474px-Euro_accession.svg.png

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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