Saturday, May 14, 2011

Eurozone systemics: At the core of the problem

Food for thought:

Can anyone deny the effects of the expensive Euro periods since 2002 on the economies, firms/companies, exports, tourism, hence competitiveness and budgets (tax revenues) of many Eurozone members (PIIGS included)?

Even these days, when the Euro is worth 1.4+ USD!

Plus consider:

1) The Euro was not decided (1991 Maastricht Treaty) with
a) China's WTO membership and Yuan policy in mind (yet intro of Euro coins & motes happened almost concurrently with China WTO entry)
b) The evolution of GATT to WTO (which took place in 1994)

One other way to maje systemics & dynamics in the Eurozone more balanced is EU exit from the WTO (the EU has many bilateral trade agreements in place to partly/selectively take the place of WTO membership).

Of course the best way for Eurozone (& EU) systemics and dynamics to find an equilibrium is EU or Eurozone or Europlus political union, as long as it is announced soon and convincingly!

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Thanks.
BRs
Nick

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