tag:blogger.com,1999:blog-36227136.post1901764316341711519..comments2024-01-16T08:40:53.682+00:00Comments on <a href="http://www.openeurope.org.uk">Open Europe</a>: Why did Latvia join the euro?OEhttp://www.blogger.com/profile/00556463374230498875noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-36227136.post-7380412288013195222014-01-20T20:05:06.947+00:002014-01-20T20:05:06.947+00:00Latvia has joined a currency that suffers from the...Latvia has joined a currency that suffers from the "tragedy of the commons". The euro will fail. Latvia should have kept its currency and declared itself a free trade nation.Patrick Barronnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-68207383875564217062014-01-20T15:23:41.752+00:002014-01-20T15:23:41.752+00:00When it Open Europe going to announce, in the inte...When it Open Europe going to announce, in the interest of ethical reporting and full disclosure, that it is an agent (albeit informal) of the EUSSR?<br /><br />It seems decidedly dishonest for Open Europe to continue to pretend that it is anything else.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-30641234761077732342014-01-20T12:23:12.381+00:002014-01-20T12:23:12.381+00:00There was never any doubt that they would have to ...There was never any doubt that they would have to join the euro it was part of their accession deal.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-40444452068446179092014-01-20T12:17:13.023+00:002014-01-20T12:17:13.023+00:00Why did Latvia join the Euro?
True Answer:
Becau...Why did Latvia join the Euro?<br /><br />True Answer:<br /><br />Because the EU bribed Latvian politicians to do so.<br /><br />christhaihttps://www.blogger.com/profile/05295016591612384314noreply@blogger.comtag:blogger.com,1999:blog-36227136.post-2431870305745586962014-01-20T09:52:59.806+00:002014-01-20T09:52:59.806+00:00So it is just a big game to protect themselves fro...So it is just a big game to protect themselves from Russian influence and exposure. And for the EU it is political and not benefit-based.<br /><br />I thought that the EU was there to prevent conflict and war in Europe?<br /><br />Yet another basket case joins the EU and Euro with begging bowl out ready for their free hand out paid for countries such as ours who are heavily in debt.<br /><br />How does all of this add up either financially or socially?<br /><br />Free trade. No sovereignty.<br /><br />SC Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-14353679816782319472014-01-20T09:15:51.340+00:002014-01-20T09:15:51.340+00:00From the Swedish point of view there is a problem ...From the Swedish point of view there is a problem here that has not been mentioned. Sweden's banks are heavily dominant in Latvia. I can see the time coming when the next housing bubble exposes Swedish banks to yet another crisis like the ones in 1992 and 2008. Sweden does not have regional banks like Germany, Switzerland and Austria, it has a small number of banks that dominate the banking sector. In addition the taxation system in Sweden subsidises its banks by guarantees made to all banks from taxation. <br /><br />I don't care how much profits they are making, it won't protect them from heavy investments in a country in which they dominate the mortgage market. Even the EU Commissars criticise Sweden for that (by Commissars I mean those in the hierarchy of commissioners who have the most power, like Barroso.)Jim Kemenyhttps://www.blogger.com/profile/04470835621505721323noreply@blogger.comtag:blogger.com,1999:blog-36227136.post-21461525689728531082014-01-17T23:12:27.848+00:002014-01-17T23:12:27.848+00:00If Latvia could keep its economic house in order t...If Latvia could keep its economic house in order there seen the cases of Danemark, Sweden little would have to be feared from staying outside the EZ.<br />It could like Danemark de facto peg its currency to the Euro. Which basically has the same effect but gives room when things have to be done like a devaluation or stimulus of the economy. Especially seen the fact that the Euro is (and for good reason btw) relative to other major currencies pretty strong seen the economic mess most of its members are in. Strong currency but in a non-growing market not something to join.<br /><br />Basically as far as export goes (which is by far the most relevant sector of its economy (as it pays for all the stuff Latvia itself doesnot produce, which is nearly everything) it is increasingly putting its eggs in the Euro basket. With the EZ being the world's biggest underperformer. It had in all honesty always been it largest trading-partner but spreading risk like the UK is doing now would have been a much wiser strategy. Normal economic/risk management simply demands seen the Zombie-growth status of the EZ a move away from there. In that respect this all doesnot make much sense.<br /><br />Accepting Latvia basically as OE indicates against the will of its people is imho a huge strategic miss by the EU. At the moment it is a relatively small PR success.<br />However longer term it is a huge new risk that the EZ is putting on its back. Seen the structure of the Euro (and the EU) any exit is in potential a huge risk as there are simply no rules for it.<br />Every exit is likely a dirty one, as it looks now and with high uncertainty. A zone with 300+ million people should hardly feel problems caused by an economic midget like Latvia. But we have seen that even a country of that size (Cyprus) can put the whole thing under considerable pressure and Latvia's voters might actually do so. Nutshell bring in a new potential problem with no mechanism to solve it when it happens is simply a huge risk. <br /><br />It would have been much better if membership would have been deferred. Simply wait till it becomes clear how things will develop. EU leaders might be firm in their defence, but every 4 year roughly other people decide and those people at the moment are in large numbers pretty Euro-sceptic. It would have had an call option which of course wouldnot have been used if the EZ would start to fall apart. Seen that basically nothing is solved in the EZ the (potential) volatility is still there. Which makes such an option very valuable and now they have thrown it all away. A road via a peg first would have been much less risky and kept most of the optionvalue intact. Especially seen the fact that very likley stockmarkets will take a big hit this year and very likley the whole Euro-thingy as a consequence thereof will come under pressure again.<br /><br />For the UK pretty good news. The more potential rubbish the EZ put on its back the likelier some of those will materialise and the easier a reneg/reform will be after that.Riknoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-3157870621125100792014-01-17T19:05:14.079+00:002014-01-17T19:05:14.079+00:00See my article about this subject: 'Latvia: Fr...See my article about this subject: 'Latvia: From Soviet Union to European Union'<br /><br />www.ussr2eu.eu-rope.comJon Danzighttp://www.eu-rope.comnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-81436987325870803112014-01-17T17:52:13.768+00:002014-01-17T17:52:13.768+00:00Speaking of solidarity, it'd be nice to see a ...Speaking of solidarity, it'd be nice to see a photo of the then Greece minister of finance grinning upon their adoption of the euro... As a EU voter I wouldn't give a single cent to any member country in crisis.<br /><br />Their biggest mistake was their decision to join the EU, but now that they're in, it hardly matters any more. Since their old currency was pegged to the euro they were already practically on the euro.<br /><br />Your analysis forgets that they could have unilaterally adopted the euro to gain those supposed benefits (except the seniorage) without exposing themselves to sociopaths from Brussels and FaM.<br /><br />I am certain that for a market minded country "advantages" of EU and eurozone membership are negative.Anonymousnoreply@blogger.com