EURO BLUES

The European Union appears to be resigned to the fact that Greece will exit the euro and return to the drachma. Six months ago the European Union was warning of disaster if Greece decided to leave the single currency but now it is just a forgone conclusion and European Union leaders appear to be resigned to a Greece/euro debacle. I have always said that Greece should never have been allowed to joined the single currency in the first place. It is rather ironic that it is going to be the first country to leave. But who will follow Greece? Well I think some southern European states will wait and see. If Greece doesn´t go into financial meltdown then others may decide to follow. If Spain was to leave the euro (I know it would have been unthinkable just a year ago!) and return to a devalued peseta it would certainly help the tourist industry and perhaps even kick start the struggling property market. In the days of the peseta devaluations were common. Tough times call for tough decisions. The majority of people in southern Europe blame the euro for most of their ills. Prices have risen, they claim, and some even blame the single currency for the present recession. Also, Europeans are becoming increasingly opposed to all the austerity measures which have been introduced. After years of recession there appears to be no light at the end of the tunnel. Whatever Greece does other European states will be watching carefully. We live in interesting times.