# Euro Currency



## enibhraoin (26 Feb 2004)

Hi

I'm doing my dissertation on the euro currency and I would like your opinions on the success of the currency. Do you think Ireland's economy would be any different if we had stayed out of the final stage of EMU?

Any comments and opinions would be greatly appreciated.

Thank You


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## N0elC (26 Feb 2004)

*Euro*

Interest rates would have probably been a *lot* higher to choke off housing inflation and to prevent the economy from overheating in the late 90s.

The little old Punt, though, would probably have reverted to being viewed as a Sterling block currency too, once it was out of the Eurozone.

Inward foreign investment would also probably be a lot lower than it actually was, due to a perceived foreign exchange risk from international investors.


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## enibhraoin (26 Feb 2004)

*euro*

Do you think that the housing problem in the Uk at the moment has anything to do with their non-membership and do you think they should join?

I think that there may be a risk of developing a 2-speed Europe where non-member countries will be forced into a peripheral economy of their own, what is your opinion


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## Tommy (27 Feb 2004)

*Re: euro*



> housing problem



Can you pls explain what do you mean by this? High prices? (pretty much on a par with here). Lack of availibility?


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## enibhraoin (27 Feb 2004)

*Re: euro*

Yes I mean the increase in house prices and lack of availability, do these factors, in your opinion, have something to do with the UK's non-membership?


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## Tommy (27 Feb 2004)

*Re: euro*

I doubt it. Don't we have the same problems here, and we are in the Eurozone? 

I would imagine that factors such as demographics, ability to capitalise on demand from the US,(reasonably) stable govt finances and loose bank lending policies (that each are common to both countries) are more prominent factors.


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## Statler (27 Feb 2004)

*Re: euro*



> Yes I mean the increase in house prices and lack of availability, do these factors, in your opinion, have something to do with the UK's non-membership?



I don't see how non-membership has increased property prices in the UK, if anything the lower interest rates in Eurozone would have fuelled this further. As far as availability goes, I do not believe currency will have an impact. Issues such as the supply of available land, planning process etc. are the relevant factors.


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## enibhraoin (27 Feb 2004)

Ok well what do you think of the euro in general reeconomy wise? And to Tommy, I was told me by my supervisor to add comments in different strings as it would provide for a wider response!!!!


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## siddo (27 Feb 2004)

'And to Tommy, I was told me by my supervisor to add comments in different strings as it would provide for a wider response!!!!'

AAM has turned into a bunch of lab rat's


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## OpusnBill (28 Feb 2004)

*Euro*

Ah Siddo,

That's a bit harsh!   It's fair enough for anyone to ask for an opinion.  Whatever they do with it is their own look-out; anyway its good to get a bit of discussion on this issue.

As for me, the Euro issue is murky in that I think the benefits will have to manifest themselves before we look a little kinder on the issue.  Ok, the economic arguments are there in theory but have they shown themselves to the populace generally (apart from going on holliers??)

We still seem to be dealing with Euro equates to Price increases and Rip-off... I would imagine that non Euro eonomies like the UK, Sweden, and Denmark are viewing this impression with interest!!

Just my two cents worth,

OpusnBill


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## Tommy (28 Feb 2004)

*Re: Euro*



> ...Euro equates to Price increases and Rip-off... I would imagine that non Euro eonomies like the UK, Sweden, and Denmark are viewing this impression with interest



Faraway hills look green... Anyone who has been in the UK recently will know that  is as big an issue over there as "ripoff Ireland" is here.


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## Statler (28 Feb 2004)

*Re: Euro*

I am not sure if all the hype surrounding the Euro and its alleged benefits have been realised, though it has helped to put trade within the Eurozone on a more level footing - more comparability and less volatility. 
As far as the Irish economy goes, I think the low interest rate environment that has accompanied the Euro has acted as a stimulus to the economy, leading to higher levels of borrowing (both business and personal), levels of investment etc. than would otherwise have been the case.
It has made things simpler and possibly made a certain portion of the indigenous business community more open to the possibilities of international trade, but these effects have not had a large impact. 
Businesses are generally of a size that do not engage in international trade, trade with the UK only, or are large enough to trade with a wide range of countries both inside and out of the Eurozone (sufficiently sophisticated to deal with fx exposures comfortably) - none of these have particularly benefited. Perhaps SMEs on mainland Europe would have seen greater benefits.


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## mairead (3 Mar 2004)

*euro*

Britain can keep a lid on house prices in the UK because they have control of interest rates unlike the Ireland there is not much they can do about inflation, borrowing and house prices.

I feel that when the new EU countries, from the 1st May, start arriving in Ireland this will  however keep wages down therefore people who have large debt will feel the squeeze

EU enlargement 'will cause greater unemployment' and lower wages 

An EU study has reportedly found that the enlargement of the union later this year will lead to greater unemployment and lower wages. The study by the European Advisory Body said labour migration from the 10 new EU states coupled with the movement of manufacturing industries to eastern European and Baltic nations would lead to a loss of blue-collar jobs in the existing EU countries. The study also said that greater "wage flexibility" would be necessary in an enlarged EU and some sectors would have to be allowed to opt out of minimum wage agreements. 

www.unison.ie/breakingnews/index.php3?
ca=27&si=51815


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## heinbloed (4 Mar 2004)

*euro-unemployment*

Hi mairead!
I state :"enlargement... will lead to greater unemployment and lower wages "
Where did you say ? Think logical !


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