Post
Topic
Board Economics
Merits 4 from 1 user
Re: ECB starts 24 month digital euro project.
by
Lucius
on 19/07/2021, 13:19:35 UTC
⭐ Merited by o_e_l_e_o (4)
Perhaps, as an EU citizen, you can provide your opinion on the following: Are the stakes that bit higher in the EU compared to the US? Should there be a complete collapse of our monetary system and USD becomes worthless, then obviously the fallout will be massive, but at the end of it, I would still expect the United States to exist with all 50 states. However, if the Euro collapses, can we say the same about the fate of the EU itself? Would the collapse of the Euro lead to the collapse of the EU?

This is the question of all questions when we talk about the common currency in the EU (EUR), compared to the US and the US dollar. The stakes, in this case, are incomparably higher than in the US in every sense, because you yourself well conclude that the eventual collapse of the US dollar will probably not affect the collapse of the US as it exists today, but the collapse of the euro would have terrible consequences for the EU.

You probably remember the Greek crisis that started around 2010 (depending on the source), which resulted in the largest attempt to save a country in the eurozone so far, and estimates say that it cost around 320 billion EUR, which puts Greece in the position of a certain debt slavery at least until 2060. Everyone may wonder if it was justified to save Greece or let it sink, but there was no doubt from Germany at the time - I think they would pay much more to save Greece (and thus the eurozone and the euro), just to save the idea of how the EU can actually function in the form in which it now stands. You can read a much better and more detailed explanation that can give you some answers to your question in this article.

While the EU may seem compact from afar, for those of us who live here it is far from it - there are several large states whose influence actually controls all important decisions, and the UK did not like it, as some other members do not like it - especially Hungary, which is trying to pursue some kind of sovereign policy within the EU, so it has been called a rogue member state for some time.

The UK had big problems with leaving the EU despite not being part of the eurozone (luckily for them), but any other country that would try to leave would face a big problem in that case - the exit ticket has a lot of zeros, for many states hard to reach amount. The most important task that EU bureaucrats are currently focused on is not to allow some new Brexit, because regardless of some new countries waiting to become members, another exit of an important member state would be the beginning of the end.