Tuesday
Sep192006
Update on Exit Euro
Tuesday, September 19, 2006 at 07:23PM 
Just before the weekend Sebastian Dullien from Eurozone Watch (see blogroll) wrote about the possibility of exiting the Euro taking Italy as an example. See my response for all the initial links. As it were this discussion created quite a stir in the blogosphere with Felix Salmon from Economonitor as well as Edward Hugh from AFOE doing backlink posts with lively and sometimes harsh commentary sections to follow. Sebastian Dullien even wrote a second post to pick up the threads. Meanwhile another sharp occasional commenter on the Eurozone Pantom from Golden Age also joins in reminding us of an old piece by Morgan Stanley's Joaquim Fels about the same issue.
Reader Comments (3)
Certainly this has major implications for the accession countries in central and eastern Europe. They may be able to grow themselves out of much of their current relative poverty for the time being, but they certainly seem to be vulnerable to Italian-style problems if they got locked into the Euro.
Indeed this is definitely a long term issue for the new European Countries and it just goes to show that being a member of the Eurozone and EU is not the same thing ... not by a long shot. It will be interesting to see what happens when/if some of the new countries dare to take the step let alone are allowed to do so.
Pantom ...
You are welcome and I did not know the Joaquim Fels piece actually so I also found something new I guess. As for Morgan Stanley ... I hardly think they would care about a backline from me but you never know.