Quote:
Originally Posted by Jesus H Christ
In short, the Net losses of the Italy, Spain, Portugal, etc is eating the profits of the EU as they refuse to correct/adopt measures from a centralized source.
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Not quite correct and you need to add Ireland, Greece etc.. they didn't meet the criteria for joining the euro in the first place... The European politicians wanted to expand the euro so fast that they ignored the key fundamentals that would make the currency work and then ignored what what happening in those countries..
The 'centralised source' as you put it, is basically Germany trying to drive through a replication of German Economic management. Hence their absolute rejection of the ECB injecting money into the economies. But what is right for Germany is not right for other countries with different economies. Now, the inflexibility of the Euro strait jacket is creating havoc in these countries - they need growth but will no way be able to achieve it.
The markets recognise this. Hence the rise of sovereign debt interest rates. UK sovereign debt interest rates are just above those of Germany when our GDP/Debt ratio is higher than Italy, Spain and a a few others. Why? because we can manage our own economy whereas the others can't.