(05-30-2010, 03:31 PM)kandrathe Wrote: Can you share a common currency without having common practices in how other countries run their finances? What penalties should exist for a nation like Greece who breaks the rules, and juggles the books to hide their cheating or mismanagement?
I think you can. You just have to be very strict about abiding the rules, and indeed make sure there are real penalties for those that screw up.
That said, modern day banking and investing is a big part of the problem here. Take Ireland that went from one of the poorest countries in europe to the one with the highest average wages. (but to be fair those subsidies started before the euro existed ), and Spain that screwed up their real estate market.
Greece is another case....maybe more comparable to Italy.....if they just start being serious about actually collecting tax, and remove the mafiosi from politics they should be able to start doing fine. (where Italy is of course a much stronger economy).
The common currency should not mean every country is as rich as the other.....that is why the rules (60% debt and 3 % deficit) are in % (no surprise there
).........I think Greece will suffer for their mistakes.....pitty that it is often the normal citizens that suffer the most while the big bakers (Golmand Sachs buddies) keep being rich.10 years under strict EU control is not a very proud thing.
When this is over (and it will be) the EU will come out stronger.