euroland under pressure? i dont think so, but some rifts seem to have surfaced lately.
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Italian minister of labor suggesting withdrawal from euro
- Thread starter Copernicus
- Start date
Underlining concerns about prospects for political and economic stability in Europe, the euro fell steeply but briefly after euro-sceptic Italian Welfare Minister Roberto Maroni said Italy should leave the euro zone and reintroduce the lira.
IN SEARCH OF LOST LIRA
The euro briefly lost about two thirds of a U.S. cent on Friday after a newspaper article in which Italian Minister Maroni said Italy should hold a referendum to decide whether to return to the lira, at least temporarily.
Maroni is a front-line minister but is a member of the euro-sceptical Northern League party and his views are not believed to be shared by Prime Minister Silvio Berlusconi or Economy Minister Domenico Siniscalco.
Maroni also said that European Central Bank President Jean-Claude Trichet was one of the people chiefly responsible for the "disaster of the euro".
The idea that European economic and monetary union could fail reared its head for the first time for years this week, after weekly magazine Stern said a possible failure of the project was discussed at a meeting attended by German Finance Minister Hans Eichel, Bundesbank President Axel Weber and investment bank economists.
The report prompted the German central bank to issue a statement ruling out any failure.
European Monetary Affairs Commissioner Joaquin Almunia and European Central Bank officials Guy Quaden and Otmar Issing also rushed on Friday to crush any talk of EMU break-up.
Luxembourg Prime Minister Jean-Claude Juncker, who holds the EU presidency, said on Friday he would resign if Luxembourg voted against the EU constitution on July 10. He also said the euro was still overvalued compared to the dollar.
Key-word: "euro-sceptical"
So this guy belongs to a "nationalistic" political party. In my opinion, Italy's PM should have ask for this guys resignation asap, but I guess Berlusconi has his hands full dealing with his own problems.
Basically, what (some) Eurozone politicians are asking for, is the ability to inflate their way out of the path of fiscal restraint.
Maybe someone from Italy can comment further.
If politicians should act conforming to the will of their electors, Maroni just had the courage to say just what a lot of people is thinking (Marosi said that a referendum only, a people vote, should decide on the issue).
How many?
Difficult to say. One of the more respected newspaper in Italy says today in its frontpage that 60% are against the idea to come back to the old lira.
So, maybe 40% are favourable, not so few.
Only weeks ago you could read France people was for sure, 60%, going to vote pro Europe. It seems they changed fast their minds...
How many?
Difficult to say. One of the more respected newspaper in Italy says today in its frontpage that 60% are against the idea to come back to the old lira.
So, maybe 40% are favourable, not so few.
Only weeks ago you could read France people was for sure, 60%, going to vote pro Europe. It seems they changed fast their minds...
While I do think the Euro is too blame in part for some EU countries problems, I think its also being used as a scape goat for major government incompetence. Added that it was introduced just as the .com bubble bursts and the USD starts to fall just fuel the problems.
A lot of people are just using the recent NO votes too promote their wider anti-eu statements but I dont think much will change in the long run. Theres too many weasels getting fat off the land.
A lot of people are just using the recent NO votes too promote their wider anti-eu statements but I dont think much will change in the long run. Theres too many weasels getting fat off the land.
Hmmmm. Here in Ireland (a Euro member) unemployment is only 4.2% - the lowest in the EU and lower than the UK which is outside the common currency. Next is Luxembourg at 4.6% again lower than Britain. So the problem in the French, German and Italy isnt the Euro.
It is lack of structural reform, lack of competition, militant trade unions and high taxes - including 58% top rate of income tax in Germany and 55% corporate tax rate.
I think the Northern League (the smallest of 4 parties in the Italian Government and whose leader Umberto Bossi once described the EU as "the Soviet Union of the West" is planning a petition to try to force a referendum on leaving the Euro.
Under Italy's direct democracy law (brought in in 1970), you must first get a petition with 500,000 signatures. Next you go to the Constitution Court for permission to have the referendum. But the Court has blocked 63 out of 127 petitions in the past, and has ruled that referendums blocking the ratification of treaties are inadmissible. Now the Euro is part of the Maastricht Treaty 1992 (it includes the British and Danish opt-outs from the currency), so it is possible the court would block a referendum on the grounds that is relates to provisions of an international treaty.
In any case, there are rules on the holding of a referendum designed to frustrate petitioners. For example, the petition cannot be deposited with the Constitutional Court in the year leading up to an Italian election, or during the six months after the election. Also, the referendum must be held in April. Effectively, since the next election is in Spring 2006, this means the earliest a referendum could be held is April 2007, and who knows what the economic outlook will be by then.
BTW , on the poll showing 60% of Italians wanting to stay in the Euro, I don't think 40% said they want to leave it. I have read that 27% want to pull out.
Which newspaper said the 60% thing? Id appreciate a link.
It is lack of structural reform, lack of competition, militant trade unions and high taxes - including 58% top rate of income tax in Germany and 55% corporate tax rate.
I think the Northern League (the smallest of 4 parties in the Italian Government and whose leader Umberto Bossi once described the EU as "the Soviet Union of the West" is planning a petition to try to force a referendum on leaving the Euro.
Under Italy's direct democracy law (brought in in 1970), you must first get a petition with 500,000 signatures. Next you go to the Constitution Court for permission to have the referendum. But the Court has blocked 63 out of 127 petitions in the past, and has ruled that referendums blocking the ratification of treaties are inadmissible. Now the Euro is part of the Maastricht Treaty 1992 (it includes the British and Danish opt-outs from the currency), so it is possible the court would block a referendum on the grounds that is relates to provisions of an international treaty.
In any case, there are rules on the holding of a referendum designed to frustrate petitioners. For example, the petition cannot be deposited with the Constitutional Court in the year leading up to an Italian election, or during the six months after the election. Also, the referendum must be held in April. Effectively, since the next election is in Spring 2006, this means the earliest a referendum could be held is April 2007, and who knows what the economic outlook will be by then.
BTW , on the poll showing 60% of Italians wanting to stay in the Euro, I don't think 40% said they want to leave it. I have read that 27% want to pull out.
Which newspaper said the 60% thing? Id appreciate a link.
bring back the lira
bring back italian government bond futures
bring back italian government bond futures
"So the problem in the French, German and Italy isnt the Euro"
I do not want to argue regarding French and German, but for a lot of people, a lot, in Italy, the reason was the lire/euro rate of 1936, accepted by the leftist/communist Prodi for political reasons, regardless it was enough fair or not (many are thinking ratio should have been 1500 at least).
"Which newspaper said the 60% thing? Id appreciate a link"
www.ilgiornale.it
I do not want to argue regarding French and German, but for a lot of people, a lot, in Italy, the reason was the lire/euro rate of 1936, accepted by the leftist/communist Prodi for political reasons, regardless it was enough fair or not (many are thinking ratio should have been 1500 at least).
"Which newspaper said the 60% thing? Id appreciate a link"
www.ilgiornale.it