Connect with us

Business

EU celebrates 20 years of euro – but THREE countries might not necessarily be grateful | City & Business | Finance

Published

on

[ad_1]

euro

Euro news: The European Union is marking 20 years since the introduction of the euro (Image: GETTY)

The euro was first launched on January 1, 1999 by the European Central Bank and is used daily by an estimated 340 million Europeans. Still popular today, recent surveys suggest three-quarters of people in the eurozone remain in favour of the euro, which has around €1.2trillion banknotes in circulation, surpassing the US dollar. But the common currency has not been without its criticism over the last two decades, with the euro battling through a global financial crash in 2008 and subsequently, the European debt crisis. In 2011 the crisis peaked, when five of the bloc’s countries – Italy, Greece, Spain, Ireland and Portugal – failed to generate enough growth, risking an economic default.

In October of that year, the then-head of the Bank of England Sir Mervyn King referred to it as “the most serious financial crisis at least since the 1930s, if not ever”.

Questions have often been raised about if the euro is indeed a failure or success.

It has mainly been southern European nations falling under the spotlight when measuring the longevity and triumph of the single currency, with Italy, Spain and Greece all having their ups and downs with the euro.

Perhaps the most high-profile nation to have almost crashed out of the eurozone is Greece.

When the euro was first launched it was often referred to as the ‘euro experiment’

Phil Hoey, editor of Quotezone.co.uk

Athens has been pulled from the brink of financial disaster with three bailouts over the last decade by the troika of the European Commission, European Central Bank and the International Monetary Fund.

The trio loaned Greece a total of £259billion (€289billion) in three successive rescue programmes in 2010, 2012 and 2015.

In what was the biggest bailout in global financial history, Athens only last summer finished completing the emergency loan programme.

In Spain, an economic recession began in 2008 with the burst of the housing bubble at the same time as the global financial crash.

Spain was in or near recession from 2009 to end of 2013 after the economy plunged into a downward spiral in the nation’s worst economic crisis in 50 years.

The recovery since has outpaced the rest of Europe, driven by stronger exports and rising domestic demand.

In terms of Italy, the crisis-hit nation has spent much of 2018 at loggerheads with European Union (EU) finance chiefs over its controversial budget.

The crisis-hit nation passed the 2019 budget just before a year-end deadline, averting a major showdown with Brussels after being accused of breaching spending commitments.

Italy prime minister Giuseppe Conte with European Commission president Jean-Claude Juncker

Italy prime minister Giuseppe Conte with European Commission president Jean-Claude Juncker (Image: REUTERS)

Italy re-drafted the budget and cut the deficit next year to 2.04 percent of gross domestic product after Brussels rejected its original target of 2.4 percent.

As the euro reaches its 20-year mark, Phil Hoey, editor of financial website Quotezone.co.uk, explained how these trio of nations could find themselves better off decoupled from the economic powerhouses within the eurozone.

Speaking to Express.co.uk, Mr Hoey detailed how the difference in sizes of economy make it hard to initiate adjustments to economic policies within the bloc.

He said: “When the euro was first launched it was often referred to as the ‘euro experiment’, a term that implied that it might not work, and even if it did work it wasn’t likely to be perfect. And it is fair to say that the euro is far from perfect.

“Firstly, it is not just a ‘single currency’ – it is also a single interest rate.

“That means the euro requires countries to hand over control of two key aspects of their monetary policy: the power to set their own interest rates, and the power to influence their exchange rates.

“This type of shared monetary policy might not be such a big deal if every country in the eurozone had a similar economy requiring similar tweaks and adjustments, but they don’t. Far from it, in fact.

“For example, exports account for a much smaller percentage of GDP in Greece, Spain, Portugal and Italy than they do in the Netherlands, Belgium, Luxembourg or Germany, while productivity rates are skewed in the same sort of way.

Greece prime minister Alexis Tsipras

Greece news: Greek prime minister Alexis Tsipras (Image: GETTY)

“In theory that means Eurozone countries like Greece, Portugal, Italy and Spain might do better in the long run if their monetary policy was decoupled from that of the Eurozone’s economic powerhouses.”

But Mr Hoey maintained that the eurozone is unlikely to see any exits in the immediate future as the political upheaval would prove “deeply painful” for the nation leaving the single currency.

He said: “In the short term a ‘Grexit’, ‘Spexit’ or ‘Itexit’ could prove deeply painful for the country leaving the euro.

“It would mean the creation of a brand new, completely unproven currency that investors and even the country’s own citizens would be very wary of.

“In fact, it could be decades before a country is able to enjoy the benefits of their newfound economic independence.

“Given the fallout the process is likely to bring, then, the weakest eurozone countries might actually be inclined to move in the opposite direction in years to come – embracing ever-closer economic and fiscal union, instead of economic independence.”

Statistics from the European Central Bank (ECB) show Italy and Spain are the only two nations from the original group of 11 eurozone members which have seen their economies shrink since the currency was created.

Shaun Richards, an independent economist, echoed sentiments of scepticism for the euro and detailed how Greece and Italy in particular are now worse off compared to before they joined the single currency.

He told Express.co.uk: “The euro is now 20 years old and here is a factor that often gets ignored which is that in overall terms it is pretty much where it began.

“The trade weighted exchange rate is at 98.7 as opposed to the 100 at its start.

“This has been great for the exporters and manufacturers of Germany but much less so for the weaker economies of the euro area.

“For example Greece did well for a while but then fell into a great depression from which it will not recover for many years.

“Also if we look at Italy we see an economy where economic output per person is now lower than it was back in 1999.

“It was not supposed to be like this as the euro was supposed to provide economic convergence and reform.”

Spain prime minister Pedro Sánchez

Spain news: Spanish prime minister Pedro Sánchez (Image: GETTY)

James Hickman, CCO of FairFX said it is too most likely too late for countries to turn their backs on the euro now. 

He said: “In hindsight I’m sure some countries regret the adoption of the euro, but I believe it’s a case of being too late to turn back now.

“The current 19 member countries using the euro are probably better off remaining with the euro, as changing currencies now could have huge economic repercussions including rocketing interest rates and currency devaluation.

“In the early years, countries such as Italy, Spain and Greece might have been better coming out of the euro.

“Having their own currency could have allowed these countries to better reflect their own economic circumstances.”

Speaking of Italy, Spain and Greece, he explained one of the biggest challenges would have been struggling with an artificially strong currency.

Mr Hickman said: “Being part of the eurozone has been a challenge as economically these countries have had to struggle with an artificially strong currency, making it difficult for these countries to grow exports.

Typically when a country isn’t doing well economically, the currency of that country reflects it by weakening, making it cheaper for other countries to buy their goods.

However, this hasn’t been the case and Greece in particular has suffered and had to receive numerous bailouts.”

But it is not all doom and gloom for the single currency.

Economists argue that the problems within less economical prosperous European nations have been magnified, but not caused by, the euro.

Speaking to Euronews, economist Duncan Weldon argued growth in the eurozone has been positive over the last few years and claimed the currency is “out of the danger zone” for the short term after a “very, very tough five or six years”.

He said: “Since 2015, there has been a real recovery in European growth, growth for the last couple of years has been decent.

“In the short term, the euro is out of the danger zone.

“The important thing to remember is that even in countries that have had really tough economic times — Greece, Italy, etc — public support for the euro remains very strong.”

[ad_2]

Source link

قالب وردپرس

Business

Independent Consultant Beginner – 6 Should Have Pieces Of It Technology And Software

Published

on

Prima Wireless Earbuds Reviewhttps://primawirelessearbuds.net/.

Many travel sites offer E-tracking. Getting keep you updated by the cheapest travel methods. You will get an alert by email if the flight in order to or previously booked has dropped in price.

An impressive media player supports several formats of both music and video clips. These can easily be in order to and from a computer by using the microUSB (v2.0).

Knowing Things That is happening in Your kid’s School – Always take contact with the teachers of the child’s degree. Try to introduce yourself and give your quantity or e-mail to construct a good communication with that company.

There are several precautions that runners should take irrespective they tend to run the particular night. It is a good idea to cover a route during the previous day running it at dusk. This will enable the runner to get an associated with any potholes or other hazards that may be more difficult to see throughout the night.

Give some thought to ones ear monitoring. You must be able to be handled by your music and Prima Wireless Earbuds Cost regarding your bands when playing live. You should determine generally if the onstage monitors will do great enough. If you’re not convinced of this then consider using headphones. This is definitely inexpensive products and solutions consider Shure EC range in ear monitoring buds.

Before packing, make a subscriber base. You can start your list anytime an individual decide to travel. By having a detailed listing of what you need, realize that some take the stress out of packing. Even if you won’t have enough time to pack until covered minute, using a list should keep you prearranged.

Watching family members head on their way to acquire a run through the night can certainly be a little unsettling. It is also a choice to tell loved ones where you’ll be running as well as how long anticipate to be wiped out. Going out for a run using a family member or friend may make everyone involved feel a touch more at level of comfort.

To handle metal detector Prima Wireless Earbuds Cost is fairly simple. All you need do is turn it on, as well as move slowly over find out what where you need to search. In most instances you will sweep the coil to and fro over the bottom in front of your when you pass across a target object then the metal detector will make an audible signal. A lot more advanced metal detectors available which convey a display that pinpoints the kind of metal that you have got detected and how deep on your lawn it is regarded as.

Continue Reading

Business

What Make Sure You Really Know Right Anyone Decide To Travel

Published

on

When traveling with children advised plan your route in advance. Do a little research and see as relevant and fun places to stop such as parks, museums or other attractions. Once you take breaks every non-chemical hours so everyone maybe even including the children probably get out and stretch their legs.

And yet their internal mechanics have improved with as of yet these people offering us much more than the mere Fm wavelengths. With their radio kit specially the newer model launched, you will get FM, AM, Internet radio, weather forecast and also TV recording.

Sony PSP – This will be the more advanced of the two in relation to Pure Pod Vibes (purepodvibes.org) specs. The PSP has a very high quality screen and can do proper sounds so may even watch free movies online on it’s. But you’ll have get the UMD movie disks and may cost replacing or additional a regular DVD. The PSP doesn’t have a a display and if you’d like to play linked games you’ll in order to be get a cable and each player need to have a copy of the sport.

Once that alarm sounds you in order to spend one hour writing down everything you just remember musing about it. You can then go back to sleep, but make particular command yourself to continue exact same way dream. Since REM state is one of the most state for dreaming, technique stretches against eachother and helps to make this more effective for lucid dreamers.

Departure time is extremely important. Leaving early am is a proficient plan. Your offspring will be tired and possibly sleep vehicle for the first part of the trip in any case.

Entertainment electronics cut in again. Modern airlines provide small TV in the back of the seat even for economy class, or Pure Pod Vibes superb hanging away from the ceiling, which are usually difficult towards your kids to ascertain if they’re not sitting within corridor outside. If you don’t have that type of luxury, a camcorder with headphones will have the desired effect. Modern camcorders have a little flat screen, so its possible to use because a mobile TV/VCR combine. For older children, a laptop with a DVD-player are able the job as so. But keep in mind to charge the batteries up to now!

Skateboard Parks: The best shop to do skateboarding in at a skateboard city park. They are safer places to skateboard because they remove associated with posed by motor all together .. The ramps are well constructed, the park is in the main free of debris; there is ample lighting for night professional skateboarding. Follow the park rule and traffic flow, skate the four foot ramp, then the six, after that your eight. I know it sounds like common sense, but sometimes boarders enter into “their zone” and Pure Pod Vibes Reivew Pod Vibes Reviews forget what’s natural. That takes us back to the ‘Keep your focus strategy. You always have to be know.

Continue Reading

Business

Majority of Canadian workers willing to take less pay for a workplace pension plan: survey

Published

on

By

A majority (70 per cent) of Canadians say they’re willing to forgo a higher salary in exchange for a workplace pension plan, according to a new survey for the Healthcare of Ontario Pension Plan by Abacus Data.

The survey, which polled more than 2,000 Canadian adults in April, signals an opportunity for employers to build back the post-coronavirus pandemic working landscape better by expanding access to good retirement plans — whether they’re defined benefit, defined contribution or group registered retirement savings plans, says Steven McCormick, senior vice-president of plan operations at the HOOPP.

According to the survey, a secure retirement remains of greater concern for Canadians than concerns about their health, debt load and job security. McCormick says this has been a consistent worry the HOOPP has seen in survey results over the past couple of years. Nearly half (48 per cent) of respondents said they’re very concerned about having enough money in retirement, while 31 per cent were highly concerned about their personal debt load and 26 per cent cited their job security. Close to half of respondents expressed high concerns for their physical (43 per cent) and mental (40 per cent) health.

In addition, the pandemic has harmed the finances of more than half (52 per cent) of Canadians’ surveyed and it’s had a particularly disproportionate affect on the finances of younger adults. Adults aged 44 and younger said they’re twice as likely (25 per cent) to have had their finances greatly harmed, compared to those over the age of 60 (12 per cent).

Generally, younger adults tend to work in roles that may have been impacted most by the pandemic, says McCormick, whether in service industries that were shut down or frontline health care that have been busy but don’t always come with access to a pension plan. “Affordability is an issue, so I think their worries increased during this time.”

And while almost half (46 per cent) of Canadians surveyed said they’ve saved more money than they would have since the onset of the pandemic, among these respondents, over half (52 per cent) didn’t put any of their savings toward their retirement. Overall, most (63 per cent) Canadians surveyed haven’t set aside or saved anything for retirement in the past year, a five-point increase since 2019.

McCormick says this may be due to uncertainty or hesitancy about whether people’s immediate needs outweigh longer-term needs. And with 55 per cent of respondents noting they were very concerned about the cost of day-to-day living, he adds that rising prices have fuelled insecurity and worries so people are creating their own emergency funds right now.

While there’s a segment of the population who’ve saved more and, for them, the pandemic has created wealth, he doesn’t see this as a common narrative in the survey data. “If you don’t have access to a workplace pension or the opportunity to have things like automatic enrolment, the uncertainty of the time may have you holding onto money,” says McCormick. “In Ontario, we’re more optimistic about the pandemic than we were maybe a month ago, but there are still people worrying about whether there’ll be a fourth wave.”

In addition, more than two-thirds (67 per cent) of respondents said a retirement crisis is looming and 65 per cent said saving for retirement is prohibitively expensive. It’s a common and shared dream for many people in looking forward to a secure retirement, says McCormick, noting for many, making that dream a reality remains elusive.

Continue Reading

Chat

Trending