Euro - the new European currency - why the Euro is a distaster waiting to happen the Euro symbol
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EURO, the new European currency.
Why it is a disaster waiting to happen...
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It may be politically incorrect to include this in a travel website, but it needs to be said. 12 European countries have given up their sovereignty to the ECB (European Central Bank) in Germany. Public opinion shows that the majority of the population in the member states are against it, yet politicians have been eager to complete the handover of power. In our opinion:

1. A common currency will not work, while there are such huge differences in the national economies of the member countries, not to mention the cultural differences. The governments will be powerless, being deprived of their ability to determine their own economic policy.

2. With the loss of power to determine the ecomonic destiny of the country goes the power to determine social policy, education ... in conclusion there goes independence. Politicians say membership is necessary to secure influence. Fact is, the eurocrats intend to run the show by majority vote, which effectively means the large countries will dominate. The smaller countries will have no real influence.

3. Each member country has no means of keeping inflation at bay. They can not change the interest rates. They are powerless. What if we get runaway inflation? It will not only mean "eurosion", but possible econonic disaster. The planned inclusion of another 10 economically weak former east European countries in the Euro zone does not make the situation more promising!

Background: On January 1, 1999 the new European currency the "Euro" came into effect and rates to local currencies were fixed. The Euro was firstly intended to be used for international payments, andexists as a cash currency from 2002. Over the first 2 years the value of the Euro has eroded by 25% against the dollar. Since we Europeans pay our energy and many commodities in dollars, inflation is on the rise. Therefore the Euro is a distaster waiting to happen. Imagine the cost of clearing up the mess and reinstall the proper currencies of the 12 countries below are scrapped. Some countries hesitate, UK and Denmark - Please tell your local politician.

UPDATE:
During 2002 we saw confusion in the Euro zone countries. The local people do not understand the new currency, - as a tourist you may find it advantageus, but most people you meet are not tourists, and you will find that they still think in their old currencies. International payments are expensive, even within the Euro zone, and you can not use a Euro cheque across borders as in the past. Bank notes are risky, watch out for fake 50 Euro notes. Coins are identical on one side, with a different national symbol for each country on the other - the result is a slightly different weight, and they do not work everywhere . We have had a true international currency for years, it is the plastic card.

1 equals:
Belgium = 40.3399 BEF
Germany = 1.95583 DEM
Spain = 166.386 ESP
France = 6.55957 FRF
Ireland = 0.787564 IEP
Italy = 1936.27 ITL
Luxembourg = 40.3399 LUF
Holland = 2.20371 NLG
Austria = 13.7603 ATS
Portugal = 200.482 PTE
Finland = 5.94573 FIM
Greece = 51.9470 GRD

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