Balearics will gain from Britain staying out of euro

Britons either coming to the Balearics on holiday this year or planning to purchase a property in the region could find themselves thanking Britain's reluctance to throw herself in to the single currency. With European economists becoming increasingly concerned about deficits in Germany and Portugal growing dangerously close to the European Union limit and the euro failing to impress world financiers with its poor and erratic performance to date, leading economists have said that the Pound could rise further against the euro - good news for British consumers going overseas this year. While the euro falls to a near six-month low and a warning on the German economy expected to weaken the euro further, while the euro zone clings on to its wallets, Britain will literally cash in on the benefit of its “wait and see” policy to the single currency. Obviously, the Balearics will gain from a stronger pound, the local economy was bolstered by confident British consumers in the region last year and the local government has already made it clear that it's looking to the British holiday market to perform well again this year. With the Balearic economy so dependent on tourism, it is therefore linked to European economies and the healthy British economy managed to keep the Balearics out of trouble last year. The property market is already seeing the return of British clients, while the majority are looking for property in the middle price range, they are buying, as opposed to the reported 40 per cent drop in the number of Germans buying houses in Majorca. The strengthening of the Pound will also be good news for British pensioners living in Majorca who have seen the true value of their pension shrunk by the runaway cost of living in the Balearics. A strong pound will help to ease the financial pressure.