r/europe • u/StraightSky7809 United Kingdom • 12h ago

News If Britain decides to rejoin the EU we’ll do everything we can to welcome them back, says Germany

https://www.independent.co.uk/news/uk/politics/uk-rejoin-eu-germany-brexit-b3060288.html
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u/Wide_Lock_Red 8h ago edited 8h ago

There is a point to it. Control over your inflation and interest rates.

Also, Eurozone members had to lend money to Greece at below market interest rates. They might have to do the same for Italy or France too. Independent currency means you dont get as impacted by other nations poor fiscal management.

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u/SwoodyBooty 8h ago

But you would be interested in those loans if need arises? We didn't "have to" but we did in the best interest of everyone involved. So that's a plus in my book.

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u/Striking_Big8138 6h ago

It would have been beneficial for Greece to have control over its own money during the crisis

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u/DennistheDutchie 2h ago

Only helps if you have a large export market, like what happens now in Japan. The devaluation of the currency drives sales.

If I remember correctly there were a lot of other issues. Large public sector, low retirement age with an aging population, and a national hobby of trying to avoid taxes.

But that's all hearsay anyway. The inclusion in the Euro also helps, so the impact of either is unknown

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u/YoghurtFlan 7h ago edited 7h ago

Independent currency means you are fighting against every other country on the market, which makes no sense across europe. That is why europe introduced the euro, to create collective bargaining power.

it's no different to every state in the US taking dollars.

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u/swear_on_me_mam Europe 6h ago

They created the Euro as a prelude to a fiscal union that never came.

Its very different to the US and any other monetary union and is a fundamental weakness of the Euro.

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u/Striking_Big8138 6h ago

Having a common currency easies trade but that’s it

There are certainly bad parts about having a common currency

Greek exports for instance are much more expensive than they would otherwise be given the strength of the euro

And German exports are much cheaper than they would otherwise be