For Poland, introducing euro is, strategically, a very important step. The discussion (so far only theoretical) is conducted in two areas. First, a political debate is devoted to the direction of our integration. There is, however, a second debate – a strictly economic one.
Following the Greek tragedy, there is a search for ways to prevent crises of similar magnitude from happening. Different state representatives are coming up with different solutions on how best handle such situations. What the eurozone needs are more voices advocating for the benefits of competition.
The euro indeed plays a major role in the Greek drama, but the ultimate cause of the Greek economic turmoil lies somewhere else. The real problem is that the architects of the euro used it as a turbo that was meant to speed up the integration engine of the eurozone, while encouraging other European countries to do so as well.
We are witnessing the EU’s declining normative influence in three levels: inner circle of membership, middle circle of prospective members and outer circle of neighbourhood, and is expressed in the primacy of hard core economics, the weaker promotion of democracy, the inefficient political conditionality and the gradual realisation that illiberalism is becoming a threatening part of several national competitive politics.
I don’t believe that we need central banking, monetary policy or our national monetary unit. Without this, we can’t avoid two essential problems – politicization of the monetary politics and also its competitiveness. But by saying this I do not wish to imply that in this particular case of devaluation of the lari the central banking system was the major problem. Quite the opposite.
Competitiveness of Europe is lagging, pension systems keep ignoring the demographic trend, relative price of energy for industrial consumers is growing, there are popular jokes about labor markets in France or Italy, starting a business and tax compliance is still extremely demanding tasks in many of the member countries.
Giving up on reforms could send a very bad signal to the other problem countries (Portugal, Spain, Italy, France) where they are also key to growth.
An online tool created by Institute of Economic and Social Studies shows complete breakdown of member states’ costs and guarantees for the rescue of the Eurozone.
Six years in Spain mean six years of falling real estate prices. If you invested in the average Spanish house in 2008, today you have 35% loss on your investment.