Quote:
Originally Posted by Dudesky
I thought they all have the Euro which is valued on the whole of the European states and valued accordingly, right?
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Yes, but it's not a central currency system like you find in other nation states. In other nation states with central banks and a common currency, the value of the currently is in the control of the institutions of that nation as opposed to an external body. In the case of the Euro, the national parliaments and national financial institutions have no direct control over the value of the Euro. So for instance, the Spanish, Greeks and Irish, cannot devalue their own currency to reduce their external debts in a response to declining revenues which make them unable to pay their debts at the current rates.
I don't think the problem is the variety of cultures. The US has a huge variety of cultures within its 50 states, yet it wouldn't face the problems of Spain or Greece because it is in control of its own currency and its value. Some countries like the UK and Denmark are part of the EU, but retained their own currencies. This serves their national interests much better I think.