Topic: Europe have one big problem the euro currency - page 2. (Read 547 times)

Europe has always seemed to me one of the most stable continents in terms of economy, I am very surprised by the way in which they have kept the value of their official currency balanced despite the fact that a large part of the countries that make up this area use it, since it must be difficult to maintain financial control with so many territories under a single organization, which is the ECB (European Central Bank). The system  have worked so far and they have been able to preserve the solidity of the euro to a certain extent, something that has not been possible to achieve even in small countries, and this can be seen if we make a comparison with Latin America specifically, in which it can be observed how the lack of order led to the instability of the official currencies of each nation, to the point of falling into quite remarkable inflation, therefore I believe that the euro will not fall as easily as you expect, it is true that it is not as demanded as the dollar but that  not makes it less, it is still as powerful as the assets of the greatest powers.

I find it funny to see a topic like this being opened now, it would made a lot more sense one year ago!

The Euro was indeed down, it was loosing against the yuan and the usd and even went below the parity with the later, but it's back at 1.10 and in regards to the yuan the author claims is in higher demand it has gone above the 5 years median after dropping to 6.80, it currently sits at at 7.88.
So maybe the author was in a lockdown and just got released?


Neither was the mark, the frank the lira or any other one but we're still doing great.
We might not have tesla and apple but we have every machine that actually makes it, everyone is talking about the China-US chip war but forgets without ASML there are no chips for either of them.  

Very short-sighted and you can already witness this approach is kicking the rich countries hard in the ass. Mass immigration always means drifting into a low-trust society, and for some strange reasons, the "poor immigrants" after some time are no longer satisfied in cleaning toilets and wiping asses in elderly care homes and want more than that. Not to mention that a large part of what meant to be a cheap labour (aka waves of "Syrian" refugees from Iraq and Afganistan) is not even interested in working at all or in learning the language. They prefer handouts.
Every single country that accepted mass immigration failed to assimilate them, so now they have no choice but to declare themselves post-national and multicultural and launch hard censorship to prevent people from calling things as they are. We can see the results of that in crime-stats, racial tensions and identity politics or in events like the recent riots in France.
It's almost like the money should not be the most important thing in the world and GDP is not a great metric for happiness.


If you became a slave of a wealthy gentleman who would provide you safety, good food and expensive cloths - would it be bad for you?
It's a question of priorities.
To me a country is to a nation what home is to family. I'd much rather be poorer but sovereign. There are always some ways to acquire wealth, but once your country/nation is decomposed, there's simply no going back.

As others have mentioned, the European economy is very large, as there are several big high-income countries that have EUR as their currency. There's also a perceived importance which Europe and EUR get, probably largely thanks to the history of colonialism, and a perceived value in other countries is important to determine the foreign demand, which in turn significantly affects the success of a currency. EUR is doing fine, successfully managing to reduce the inflation that was hit in 2022, and I don't think we're in for a relapse. If anything, I think EUR will actually get stronger because there are countries that may still adopt it at some point.

Time to impose the harshest sanctions against the inhumane EU regime ! What kind of sadism is this - to give free education, to teach to create, to create, to generate profit ! And then also try to raise the standard of living in the country of the person who survived these terrible inhuman tortures with free excellent education and care about his future !!!! How long will the world tolerate such horrible abuse !?

Long live freedom from happiness, knowledge, skills, desire to want and be able to live well ! 

The euro isn't backed by commodities, tech, natural resources, manufacturing or exports. This leads to questions of how to sustain their relatively high standard of living.

Americans have silicon valley, oil and natural resources. Tesla, apple, google, microsoft, twitter, facebook, etc. The highest statistic for newly minted millionaires and billionaires in the world.

While europe has no lack of desire to compete. Their road is an uncertain one.

Indeed, the volume of trade within Eurozone countries is remarkably high, in year 2022 the total trading volume recorded was more than 4 trillion Euros, which is very impressive and reflects fundamental strength of Euro. In my opinion the main factors driving the depreciation of Euro are as follows:

1- Heavy dependence of European countries on Russian oil and Gas has become a concern, particularly due to ongoing Ukraine war which added uncertainties to economic outlook of Eurozone, and impacted value of Euro.

2- Another significant factor is slow down in economic activity in China, that has also adversely affected Eurozone, as China being its largest trading partner.

https://cepr.org/voxeu/columns/euro-weakness-2022#:~:text=Three%20key%20factors%20have%20been,(Fed)%20and%20the%20ECB.

No, EU is an enemy. These shit EU countries, including Germany, France, Netherlands, Switzerland and other ones offer free education to people from poor nations, give them possibility to increase their qualification and then return in their country to improve living there and establish an EU standard in their countries. Can you imagine how evil it is? Can you imagine that these evil Europeans are working hard and pay 42% of their income in taxes to benefit not only local but people from 3rd countries too.

I already booked the trip in Spain and wanna visit Portugal too. I wanted to go in Russia or in Belarus in August but it's only for elites and super wealthy people, so I decided to visit my poor Barcelona to spend a week in poverty (I call it a rest). Ahh, I don't know what to do, this shit work-life balance that we have in Europe is so hellish too, ohh my.

C'mon, C'moooon guys, wake up to reality. Hard-working EU countries are doing well, quality of life is very high, work-life balance is very good, free healthcare and quality of service is good, not super good but really good compared to the other countries. My only wish is that please don't worry about Europe, let's not talk about Europe, let us be left alone in poverty, please don't remind us that we are poor, it hurts our feelings.

Stompix was sunbathing for 3 days on the Dalmatian coast in this ravaged Europe with the beaches full, the clubs and bistros, the airports full, the roads full of people enjoying a holiday. Everyone sees doom and gloom I see spending and people moving around more than ever.

Spain has just broken the 2019 pre-COVID record on arrivals and people talk about how shitty Europe is, but everybody wants a piece of it.
https://www.travelwires.com/may-2023-witnessed-spain-achieving-a-new-record-with-8-2-million-tourist-arrivals
I wonder why millions of people are drowning and getting killed by human traffickers to end up in this region. Must be the bad life we're having compared to Africa.


One euro was worth 69 rubles at the start of 2020, it's now worth 99.
I want more of this trouble when the thing I have actually increased in value!


That's a bad way to look at a currency, it takes just the value of one unit compared to the other.
By that logic, the Turkish lira is better than the yen and the Pakistani rupee than the South Korean won.

Anyhow, another topic on how the euro and the EU will die for the thousands time, but this time it's for sure.

Well, that's a very ugly way of putting it.
In fact, the EU is the world's largest economic player. It's not just cars and reliable household appliances. It is also technology, aviation, the military-industrial complex, high semiconductor technology, agro-technology, medical equipment and technology. And all of this has a value, and in Euros - in Euros the cost, work, taxes,....
The Euro is also an ideal tool to support the weaker countries in this union. Imagine - how would Europe support Hungary, for example, if Hungary kept its Forints, Germany kept its Marks and France kept its Francs? 
So I'll be brief, sorry, but you are very wrong....

Absolutely, I'm not sure why the OP is focussing on the 3rd largest currency? so yea
raise the point of backing it up with something but that means central banks wont
be able to print their way out of/into trouble so easily so while we in general can complain
I'm not sure backing it up with some commodity or asset is going to be popular with
decision makers.


There is quite a demand for € inside the eurozone though!

Every FIAT currency is in trouble, not only Euro. It is because FIAT has no hard supply cap like bitcoin. Every FIAT currency in history died because of this reason. People tried to use gold backed currencies but we failed because we cheat. Bitcoin is honest. The supply is limited and there will never ever be more than 21 million bitcoins in existence. If people dump their FIAT for BTC maybe the central banks will take notice and stop printing useless papers but that's wishful thinking. We know they can't stop printing because it is their job to do so.

There is no demand by other currencies for euro so much.
Yes europe printed a lot money economy is boosted and debt burden on people are highest.
That's all true but all this euro currency not backed by real things like USA oil and Even russian oil power to protect currency value.
If currency is large like euro then at least some high demand service or value should be backing up the currency without talking Even about commodities.
So it's Simple the euro needs to be backed on something real not just with bonds loans and debt anyone who knows about finances knows it's dangerous for euro currency value.

Oh yeah since hundreds and god knows how many years Euro is Euro with decent valuation so far. Have you seen other nations with values so low that if they are supposed to carry 100 EURO worth a cash then they will need entire backpack to do so. I am not targeting any country in negative ways but for the sake of comparison leave the Euro out of discussion. This really doesn’t seem right to even say that this currency will go down with the time just because they don’t have oil or other raw materials to make money. They make money, they make lot of money. As stated in the first post itself tourism is the biggest stake while IT is another followed by many other streams.

Man, definitely I know that Europe and European union are two different things, sometimes I just use EU or Europe in both cases.
What was the point of Germany? To conquer Europe. Honestly, who is in charge of EU? Germany. With or without a war, the aim is achieved. Germany or France are by no means good guys, especially Germany.
Does Germany benefit from EU and Euro? Logically, we can say that poor nations push down Euro while Germany pushes it up, i.e. at the moment being in EU is expensive for Germany but at the same time, there are tremendous benefits and the major benefit is control on so many nations. EU on another hand is the united states of Germany. If language was not a barrier, I guess it would be called the USG or VSD (die Vereinigten Staaten von Deutschland).
I won't talk about trades, EU market, one currency and so on, because everyone mentions them when they talk about the benefits that Germany gets but there is another bigger benefit: What do you think, who does manual labor? German people? No, people from poor EU countries like Hungary, Romania, Czech and recently from Spain and Italy, they do jobs that no one wants to do. That keeps things cheap inside the country because no German person will work in warehouses on €12.82 per hour. Another benefit they get is that some German people, who own apartments, just rent it and live on that income. The situation for people who have houses in this country is like: Foreigners come in your country to work, you give them house, they leave half of their salary in rent, do all the shitty jobs and you live off of that. I don't say that this is something to be proud of, just saying how the reality looks but this situation exists in every rich nation but it really is a very smart move from the country: Create good economy and then let foreigners work for you while you get all the money and have fun.

So, democracy doesn't exist. No one is a kind. But let's be honest, if every EU country was united under Germany or France or UK like the states of the USA, would it be bad for them? Germany managed to become N4 economy in the world after WW2. This means that country and people are capable of things. I don't really want to disrespect anyone but just imagine, if we move every German people in Romania, will this country be still poor? Or will it turn into a rich, capable and powerful country?

I know I went tooooo far, pardon me, idk why did I went that far but don't really want to remove such a big text
Btw I think that Eurozone is one of the worst performing regions because of the influence of the USA. It's not like that EU is on it's own, the influence of the USA is there.

You are absolutely right, while European union is one of the top economies of the world but it ranks third after USA and China. European union is indeed a significant economic power house of the world, its combined GDP places it among top global economies. Euro is official currency of Euro zone and it is widely used not only among member countries of European union but also in international trade  and finance, and it ranks second after US Dollar.

I think the debit crisis started in 2009 had a significant impact on Euro's value against other major currencies and  caused overall economic instability in Europe.

Europe =/= EU. And not all EU countries are in the Eurozone. The EU started of as a free trade agreement between sovereign countries but is evolving into some strange, totalitarian monstrosity where, little by little, more competences are taking away from each country and ceded to the EU. It's like creating a super-state (United states of Europe) but without asking people for opinion. I don't think they even pretend to care about democracy anymore, plus there are full of double standards.
Because of overregulation and implementing weird laws (that benefit the strongest countries, mainly Germany), the Eurozone was one of the worst performing regions in terms of economical growth in the last decade.

@stompix How did you miss this thread, someone says bad about Europe.

I really wonder where you are. By the way, is the UK doing better after BRexit? And how can you really say that Europe does provide nothing? By the way, I want to remind you that EU countries remain top in food security index, European countries tremendously improved medical field and invented a lot of medicines, German engineering still remains the top. Europeans conquered the world, improved the quality of life absolutely everywhere and still Europe does very well, people here are hard workers and have a high quality of life. Have you really ever been in Europe? How can you say that we produce nothing and bring no value to the world, how can you really say that. It drives me crazy when people like you come in EU countries for asylum.
Google EU countries, google what each of them produce.

They will know the impact of tourism to their economy when it will be gone.
However, there will always be tourists. I don't think they can totally eradicate the presence of it.
Unless, the government will not entertain visitors and block their entry to their country.
Which for me, is hard to do. We have seen this scenario during the pandemic days only.
And now, we are returning back to where we were. So mass tourism will always be here but maybe they can put some restrictions on it.

How will the Euro support the European economy when it is the prosperity of the economy that determines the value of their currency? If their economy collapses due to inflation, their currency will weaken a lot, and that is what is happening with the EU. How will the euro help them get rid of their dependence on the US? I really don't know what you are talking about because currency is a representation of the economic strength of a country, a bloc.