20% chance of Euro survival over 10 years

[Schadenfroh]

So says a UK think tank...
http://www.reuters.com/article/idUSTRE6BU0QI20101231

The euro currency area has only a one-in-five chance of surviving in its current form over the next 10 years because of competitive imbalances between its members, a leading British think tank said on Friday.

"The euro might break up at this point, though European politicians are normally able to respond to a crisis," said CEBR Chief Executive Douglas McWilliams in a list of 10 forecasts for 2011.

I think its chances are much better than that, but if Germany backs out, then it is likely over. I doubt France could hold the currency together on their own. If both France and Germany withdraw from the currency union and start printing their own currencies, bye bye Euro.

 

[Hayabusa Rider]

I don't know what the chances of the euro failing are, but I can see a Unites States of Europe forming over the next few decades. Nations will not want to cede sovereignty, but if financial catastrophe strikes Europe (which appears to be in worse shape than us right now) it could happen.

 

[sMiLeYz]

I've saying to anybody that would listen, the Euro was a horrible idea to begin with. Theres no device that allows individual members to devalue their currency when things go bad, like with Greece, Spain, and Portugal.

Spain, who have been running budget surpluses before the financial crisis finds itself in situation where basically they have to cut wages by at least 20%. If they had their own currency, they could allow self-correcting devaluation to fix their wage prices.

 

[theeedude]

Euro will only survive if Eurozone becomes a single state with some sort of a common fiscal policy.