6 ms·

I hope whatever they do they don’t adopt the euro as their currency.

by znpy 19d ago

pavlov 19d ago
Joining the euro is a hard requirement for new countries entering the union. The only negotiable is the length of the transition period.
- rgblambda 18d ago
  As the Polish government have made very clear, the length of the transition period can be indefinite. And it isn't really a negotiable. It's up to the country when it wants to join the Euro. They just have to promise that they'll do it at some unspecified point in the future.
jochem9 19d ago
New joiners are required to eventually adopt. Only members that were so before the Euro are exempt.
amunozo 19d ago
Have you seen how bad is the Icelandic crown, their prices and their borrowing rates? Adopting the euro is one of the main arguments in favor of joining the EU.
- DataDive 19d ago
  Ok, but why is it the Icelandic crown "bad"? What is the economic cause of it? I do not know much about Iceland, only that, like New Zealand (and Canada), it is sometimes painted as some sort of progressive heaven that the US should aspire to. Then, as you learn more, it turns out life isn't that great there.
  - amunozo 19d ago
    No idea, I think that being such as small economy its currency fluctuates a lot, more than it is bad per se. That is why joining the Euro would give them a lot of stability, according to campaigners in favor of joining the EU.
  - eloisant 18d ago
    https://en.wikipedia.org/wiki/Icelandic_kr%C3%B3na#2008_financial_crisis https://en.wikipedia.org/wiki/Icelandic_kr%C3%B3na#2008_fina...
jonkoops 19d ago
The Euro is actually one of the reasons they want to join; even their prime minister stated it explicitly. It would be a more stable currency than their own.
Beretta_Vexee 19d ago
This is one of the main reasons for the discussions. The Icelandic króna is a very small currency that fluctuates significantly. It is a small economy, and the difference in currency complicates access to European financial services. Switching to the euro would enable them to eliminate exchange rate risk with their main trading partners. There are countries outside the EU that have switched to the euro for this reason, such as Montenegro and Kosovo.
- DataDive 19d ago
  Why wouldn't the price also fluctuate if it is in Euros? Doesn't the price fluctuation reflect an economic reality? Related: couldn't a country adopt euros voluntarily without joining the EU? Like Ecuador adopted US dollars.
  - eloisant 18d ago
    The euro is very stable because it's a used by some big countries (in population and economy). So prices can fluctuate but less because there is little currency-related fluctuation. Also yes, a country can adopt the euro unilaterally, that's the case for Kosovo and Montenegro. But that's a tough situation because they're not represented at the CBE, they don't get a say in how much money gets created, banks can't get financing from the CBE...
    - rdm_blackhole 18d ago
      I think your analysis is not complete. Yes the Euro is/was stable but not because there are many big countries using it. The Euro is/was stable because behind it there was stable and relatively well managed democracy named Germany. Unfortunately Germany is not doing so well at the moment and that could deteriorate even faster in the future with the right wing populist gaining grounds who are openly campaigning on leaving the EU and the euro. As you can imagine, without Germany, there is no euro. The Euro also spreads the risk to other countries which means that one state's failure can propagate to others. Look at what happened with Greece and the panic that it caused at the time and that was for a small country witha small GDP. Now look at France who is indebted to its eyeballs and on the verge of electing either a far-right or far-left president who both are EU-skeptics and will try to work around the EU if not completely undermine it. What happens then? As always in a chain, you are only as strong as your weakest link and unfortunately for the Eurozone, France and Germany are both doing badly at the same time and it doesnt seem that there is any light at the end of the tunnel for both of them currently. Italy is doing slightly better but its economy is smaller and it is still heavily indebted and it will not be able to carry the Euro itself if either France or Germany decide or are forced somehow to exit the Euro.
hectormalot 19d ago
Can I ask why you have this sentiment? I think the Euro has been a great achievement. It seems quite stable compared to its predecessor currencies and it’s convenient for trade across the union.
- andrepd 19d ago
  Countries have wildly different needs regarding monetary policy. Those interests are sometimes in conflict. When push comes to shove, unsurprisingly the powerful dictate the rules: see the 2010s Eurozone crises.
  - jonkoops 18d ago
    They all want a stable currency, though, and the Euro is certainly that. To the point that even non-EU states have started to adopt it over their own.
eloisant 18d ago
Look what happened to their currency in 2008, at the time they really wished they were using the euro.
- znpy 18d ago
  > Look what happened to their currency in 2008, at the time they really wished they were using the euro. Alright, after looking at that, look at what happened to Greece (who adopter Euro as their currency).

I hope whatever they do they don’t adopt the euro as their currency.

by znpy 19d ago

I hope whatever they do they don’t adopt the euro as their currency.

Joining the euro is a hard requirement for new countries entering the union. The only negotiable is the length of the transition period.

rgblambda 18d ago
As the Polish government have made very clear, the length of the transition period can be indefinite. And it isn't really a negotiable. It's up to the country when it wants to join the Euro. They just have to promise that they'll do it at some unspecified point in the future.

jochem9 19d ago

New joiners are required to eventually adopt. Only members that were so before the Euro are exempt.

amunozo 19d ago

Have you seen how bad is the Icelandic crown, their prices and their borrowing rates? Adopting the euro is one of the main arguments in favor of joining the EU.

DataDive 19d ago
Ok, but why is it the Icelandic crown "bad"? What is the economic cause of it? I do not know much about Iceland, only that, like New Zealand (and Canada), it is sometimes painted as some sort of progressive heaven that the US should aspire to. Then, as you learn more, it turns out life isn't that great there.
- amunozo 19d ago
  No idea, I think that being such as small economy its currency fluctuates a lot, more than it is bad per se. That is why joining the Euro would give them a lot of stability, according to campaigners in favor of joining the EU.
- eloisant 18d ago
  https://en.wikipedia.org/wiki/Icelandic_kr%C3%B3na#2008_financial_crisis https://en.wikipedia.org/wiki/Icelandic_kr%C3%B3na#2008_fina...

jonkoops 19d ago

The Euro is actually one of the reasons they want to join; even their prime minister stated it explicitly. It would be a more stable currency than their own.

Beretta_Vexee 19d ago

This is one of the main reasons for the discussions. The Icelandic króna is a very small currency that fluctuates significantly. It is a small economy, and the difference in currency complicates access to European financial services. Switching to the euro would enable them to eliminate exchange rate risk with their main trading partners. There are countries outside the EU that have switched to the euro for this reason, such as Montenegro and Kosovo.

DataDive 19d ago
Why wouldn't the price also fluctuate if it is in Euros? Doesn't the price fluctuation reflect an economic reality? Related: couldn't a country adopt euros voluntarily without joining the EU? Like Ecuador adopted US dollars.
- eloisant 18d ago
  The euro is very stable because it's a used by some big countries (in population and economy). So prices can fluctuate but less because there is little currency-related fluctuation. Also yes, a country can adopt the euro unilaterally, that's the case for Kosovo and Montenegro. But that's a tough situation because they're not represented at the CBE, they don't get a say in how much money gets created, banks can't get financing from the CBE...
  - rdm_blackhole 18d ago
    I think your analysis is not complete. Yes the Euro is/was stable but not because there are many big countries using it. The Euro is/was stable because behind it there was stable and relatively well managed democracy named Germany. Unfortunately Germany is not doing so well at the moment and that could deteriorate even faster in the future with the right wing populist gaining grounds who are openly campaigning on leaving the EU and the euro. As you can imagine, without Germany, there is no euro. The Euro also spreads the risk to other countries which means that one state's failure can propagate to others. Look at what happened with Greece and the panic that it caused at the time and that was for a small country witha small GDP. Now look at France who is indebted to its eyeballs and on the verge of electing either a far-right or far-left president who both are EU-skeptics and will try to work around the EU if not completely undermine it. What happens then? As always in a chain, you are only as strong as your weakest link and unfortunately for the Eurozone, France and Germany are both doing badly at the same time and it doesnt seem that there is any light at the end of the tunnel for both of them currently. Italy is doing slightly better but its economy is smaller and it is still heavily indebted and it will not be able to carry the Euro itself if either France or Germany decide or are forced somehow to exit the Euro.

hectormalot 19d ago

Can I ask why you have this sentiment? I think the Euro has been a great achievement. It seems quite stable compared to its predecessor currencies and it’s convenient for trade across the union.

andrepd 19d ago
Countries have wildly different needs regarding monetary policy. Those interests are sometimes in conflict. When push comes to shove, unsurprisingly the powerful dictate the rules: see the 2010s Eurozone crises.
- jonkoops 18d ago
  They all want a stable currency, though, and the Euro is certainly that. To the point that even non-EU states have started to adopt it over their own.

eloisant 18d ago

Look what happened to their currency in 2008, at the time they really wished they were using the euro.

znpy 18d ago
> Look what happened to their currency in 2008, at the time they really wished they were using the euro. Alright, after looking at that, look at what happened to Greece (who adopter Euro as their currency).