12/12/2011

Another Country To Bail On The Euro?

It seems yet another EU country is reconsidering its reliance upon the euro. This time around, it's France.

Not that France's economy was all that great before they switched from the franc to the euro. The issues with the euro has merely made it worse.

The French have growing reservations about the euro: 36% want to withdraw from the eurozone and go back to the franc, the old national currency; 4% have no opinion, which means that they don’t warmly support the single European currency; 44% say it is a handicap in the present context of a world economic crisis; 45% say it doesn’t serve the national interests of France; and a staggering 62% say it is damaging the average French family’s standards of living and purchasing power.

With the economies of Portugal, Ireland, Italy, Greece, and Spain teetering on the edge due to steep sovereign debt with little means of paying it off. These nations are depending upon the rest of the EU and the IMF to bail them out even though some of them haven't managed to trim their government spending to sustainable levels. A bailout will only delay the inevitable, not prevent it.