Re: Meanwhile in the Eurozone ...
Originally Posted by
Solasch
->
Schengen area and eurozone are different entities. This map may help you.
Morning Solly, I won't pretend to be an expert in the workings of the Euro, but even I know the basics.
The reason I mentioned the Shengen Areas is because it is noted that the last time the eurozone was working at it's best was back in 2017, when it was recovering from the debt crisis that itself was a real threat to the euro.
Cut to present day, under the Shengen agreement, 26 member states agreed to allow free movement of people, goods, services and capital finance within their borders. so one would imagine that If the euro was to collapse it would affect every one of those countries, with devasting effects, along with many outside private businesses suffering.
I wonder how the EU would resolve a collapse?
Would they revert to their own currencies? would they run it alongside the ruinous euro?
One would presume there wouldn't be a problem in using both the euro and local currency in the economic zones, such as Germany or Italy trading in both German Deutsche marks and Italian Lira, but imagine how this would affect private businesses who rely on European transport or tourism.
What about the Shengen countries such as Greece?Italy? and perhaps even Ireland? If they and the other EU countries were forced to run two currencies, wouldn't this affect vital things such as bank accounts, wages, pensions and other assets? Personally, I think it would cause havoc in the Shengen countries.
I don't know whether I am barking up the wrong tree when I mention Shengen areas in the event of a Euro collapse, but even I can say that the workings of the Shengen areas would play a vital part if it happened, and believe the economic casualties would be enormous.
Am I wrong?