More bad news for the EU: Italy may retuen to lira

[StudioAlex]

TOKYO (Reuters) - The euro fell sharply against the dollar on Friday after reports that an Italian minister said Italy should consider quitting the euro and returning to the lira.
The euro fell as low as $1.2220 from $1.2290. Against the yen, the euro tumbled down to near 132.25 yen from 132.60 yen. The dollar also jumped against the yen.

The report said the minister blamed European Central Bank chief Jean-Claude Trichet for the euro "disaster."

The rejection of a new European Union constitution by French and Dutch voters in the past week has raised worries about the future of the euro zone's monetary union.

This would be a wise move. Regulation of currency production is vital to a country's ability to maintain its economy. I'd be mortified if the US handed that responsibility off to another party. If this happens, it could be the nail in the coffin for the EU.

[fiXXXer]

TOKYO (Reuters) - The euro fell sharply against the dollar on Friday after reports that an Italian minister said Italy should consider quitting the euro and returning to the lira.
The euro fell as low as $1.2220 from $1.2290. Against the yen, the euro tumbled down to near 132.25 yen from 132.60 yen. The dollar also jumped against the yen.

The report said the minister blamed European Central Bank chief Jean-Claude Trichet for the euro "disaster."

The rejection of a new European Union constitution by French and Dutch voters in the past week has raised worries about the future of the euro zone's monetary union.

This would be a wise move. Regulation of currency production is vital to a country's ability to maintain its economy. I'd be mortified if the US handed that responsibility off to another party. If this happens, it could be the nail in the coffin for the EU.

Yes, I can finally take that trip to Italy that I put on hold. Ever since they adopted the Euro, the prices of traveling their skyrocketed. Paying like 8 Euro's for a bottle of water. I hate the frickin Euro. Same goes for Spain.

[duke]

I'll tell you though, there is something to be said for not having to exchange money.

One currency at an equal exchnage rate makes traveling over there much easier. Yeah, more expensive, but not astronomically so. It seems to help keep prices a little lower in countries that would be more expensive and vice versa. If you're going to moer than one spot it really does even out. Italians are not known for their financial prowess. If they weren't holding some of the most attractive tourist destinations in the world, they would be even more of a joke than they are now.

[Jafo]

I'll tell you though, there is something to be said for not having to exchange money.


Bah, then get AMEX travellers checks. :)

[StudioAlex]

It would also be more convenient if they spoke one language. The peril in not having the ability to control your currency leaves you at risk to deflation and inflation. The amount of money generated by the government is dependent upon the growth of the economy, so as to keep the currency stable in value.

Take a country like Poland which is growing at a faster rate than the more affluent France. Both countries have different needs and it betrays their own interests to have a third party decide on the value of their currency.

[Jafo]

Take a country like Poland which is growing at a faster rate than the more affluent France. Both countries have different needs and it betrays their own interests to have a third party decide on the value of their currency.

I think you hit the nail on the head there.

[duke]

I'm not disagreeing, just saying I like it for traveling.