Will the Euro Survive the Weekend?!?!

Ok...it probably will. But French President Nicolas Sarkozy seems concerned with the long-term prospects of the EU and his own country. From the Financial Times :

"As Moody’s, the US rating agency, warned that France could see its credit outlook cut as a result of the growing sovereign debt emergency, Mr Sarkozy alluded to his country’s vulnerability were the eurozone to fall apart. “France on its own cannot cope.”
Prime minister François Fillon echoed the need for a rapid breakthrough on Sunday: “If we don’t succeed, Europe will be at great risk.”
The European Commission also pushed back against Berlin’s warning that a solution to the eurozone crisis might not be reached this weekend, with a spokesman saying non-EU finance ministers at the G20 had made clear last weekend that “we are expected to provide a comprehensive answer as soon as possible”

Do you think the Euro can pull out of its nose dive? And if so, will this lead to increased political strength of the political arm of the monetary union?

 

I defer to DeOrc on this... I simply don't know enough about it to comment otherwise.

 

Well they still have it at the moment LOL and if it does go the way of the Dodo the only way that will impact me is I wont be collecting any more 2 euro coins LOL

 

Just a quick update there is a important vote on a refinacing package on wed night that could make or break the euro

 

I didn't realize the Euro was in such trouble, but it honestly doesn't surprise me. I remember discussing the formation of the EU and the Euro back when I was in French class all those years ago and the teacher was of the opinion that the EU couldn't survive. I remember expressing concern that all of the countries were giving up their own currency--the UK was smart, I think, to keep their own currency. I hope that whatever is best for Europe's economy results from Wednesday's vote, but it wouldn't make me cry if the Euro failed.

 

This evening the UK parliament is having a vote on a possible UK referendum about leaving the EU The problem is that 50% of our trade is with EU countries​

What you have to understand is that there is a difference between the Euro and the EU itself not all member states use the Euro and if a country leaves the monetary union it doesn't mean they have to leave the EU itself​

The Euro has only been running since 1999 but the EU has been going for a lot longer than that it's origins go back to the EEC in 1957​

If it fails then the repercussions will be felt world wide including in the US as you have a very large exposure to the European markets and a failure there would be even worse for US Banks than if Greece defaulted​

 

"What you have to understand is that there is a difference between the Euro and the EU"

Absolutely - the euro may be in a degree of danger (although there's so much political capital invested in it that it's likely to survive whatever it takes), but the EU itself is broader than the eurozone and is under no threat whatsoever. At some point the rules on member states being required to move towards euro membership are probably going to have to be relaxed, though - as things stand, all EU countries other than the UK and Denmark are affected by that rule, although admittedly no-one seems to have told Sweden that!

 

Update the vote was defeated so no referendum in the UK on membership of the EU at the moment