For poor countries, there is too much benefit staying in and receiving bailouts. For "middle" countries there is too much economic benefit from staying in it. For richer countries like Germany there are benefits but one has to wonder how much longer they are willing to pay the bill. My guess, (only a guess of course), is no poor or "middle" country would ever leave the Euro except for being kicked out. Only Germany would I ever envision voluntarily leaving it. The Euro is a wonderful idea, but without further strengthening of ties, forming effectively one nation, will it be successful long term however. Its simply too appealing to politicians to overspend.
Like was mentioned, it's too convenient a bailout situation for some countries. I've been amazed it's even worked this long, however. How can countries such as Germany and Greece, for instance, run on the same currency standard and function? It would be like the US and Mexico using the dollar at par. Either their GDP will have to increase dramatically or ours would have to decrease dramatically, or even out, in which case it would be devastating. It's beyond logic. Guy
So sorry to disappoint you but Latvia may join the euro area. Not this year but on 1 Jan 2014 maybe. It's not a done deal yet though. Christian
I have always been interested by the Euro. I have heard about Latvia joining but I keep hearing things like Greece and Italy might pull out.
As far as Italy is concerned, that is primarily a political issue. If the Italians, now that Monti's coalition has come to an early end, vote for a political "constellation" that gives Mr Berlusconi a relevant job, he may well talk about leaving again. Oh well. Christian
I think Italy has larger problem with the Northern League than worrying about leaving the Euro right now. Italy is a weird country. It really is effectively two distinct nations and cultures, tied together only by language. I would say northern and southern Italy are a lot more different than Scotland and England, and those two seem to be moving further and further apart. Of course, anyone who has spoken to a Scot for long understands Scotland and England do not really share a common language though. *No offense meant to any fine Scottish folk here.
