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WHAT ARE THE BENEFITS OF THE EURO CURRENCY TO POLAND?


rychlik 41 | 373
19 Apr 2010  #1
The title says it all. Yesterday I had a conversation with my Polish friend, and she believes it would not be beneficial to Poland to adopt the Euro, as prices for everything would go up. Wasn't Kaczynski against the Euro, and Tusk is for it?

Please discuss.
mulsie 2 | 13
19 Apr 2010  #2
speaking from experience, there was widespread price inflation following the euro, particularly in spain, portugal and greece. its amazing now however that the prices of many things (but not all) across a lot of the euro zone are now fairly similar, even for vegetables grown locally etc. the traditional cheap countries such as the above and ireland have now become expensive while the traditional countries are now more affordable.... problem is incomes in the med countries haven't caught up.. are the citizens of the relatively poorer states victims of the euro then??????
jeden - | 226
19 Apr 2010  #3
recession
joepilsudski 26 | 1,391
19 Apr 2010  #4
are the citizens of the relatively poorer states victims of the euro then??????

Certainly.
OP rychlik 41 | 373
20 Apr 2010  #5
So why the hell does Poland want the Euro? To fit in??? Don't they have a choice?
convex 20 | 3,980
20 Apr 2010  #6
Don't they have a choice?

No. They didn't sign an opt-out agreement. The only choice is to leave the EU.
OP rychlik 41 | 373
20 Apr 2010  #7
convex

No. They didn't sign an opt-out agreement. The only choice is to leave the EU.

Are you serious? They can't sign one in the near future? How did Britain get away with this? I hear they still use the pound.
convex 20 | 3,980
20 Apr 2010  #8
No, they already agreed to adopt the euro.

The UK put an opt-out clause into the Maastricht treaty
OP rychlik 41 | 373
20 Apr 2010  #9
Can you give me better answers. Will this hurt Poland in the long run or what? I don't want my poor Poland to go down.
plk123 8 | 4,153
20 Apr 2010  #10
Will this hurt Poland in the long run or what?

abiliz
short term yes, just like`what they said above. long term, most likely not.. things tend to stabilize over time.. poland has become pretty expensive and the euro would only make it even more so and there is no going back from that.
Lonman 4 | 111
20 Apr 2010  #11
I have met more than a few "euro" people in my travels and I do ask the question are prices and life better with the euro.... most say 1) prices went up 2) euro buys less...

so simple answer for me is Poland is better off without the euro and control of its banking policy as long as possible. I bet the Germans would love to be rid of the euro at this point in time.

just my 2cents.
convex 20 | 3,980
20 Apr 2010  #12
so simple answer for me is Poland is better off without the euro and control of its banking policy as long as possible. I bet the Germans would love to be rid of the euro at this point in time.

Exactly, why have all the disadvantages of fiat money without any of the benefits?
Borrka 37 | 594
20 Apr 2010  #13
Looking for benefits of Euro ?
Just start any cross-border cooperation in the EU and you will understand it.
convex 20 | 3,980
20 Apr 2010  #14
The minuscule benefits to business don't outweigh the lack of monetary control for the state. The countries that haven't adopted the euro haven't seen any drop in trade.
MareGaea 29 | 2,753
20 Apr 2010  #16
When the Euro replaced the Guilder in NL, all prices and pays, except for the hospitality (hotels, pubs, restaurants and the like) branch and grocery branch were correctly exchanged. A Euro was 2,2 Guilder, so 220 Guilders became 100 Euro. In the before mentioned branches 1 Guilder became 1 Euro, with only a handful exceptions. Let's not blame the Euro for this, but the greedy shopkeepers, pubkeepers and the like. They took shamelessly advantage of the coming of the Euro to make a bigger buck. So far for increasing prices.

Trouble was that the government and the bosses and so on, exchanged it fairly. So the effect was that you kept earning the same, while prices went up. This is -again- not the fault of the Euro, but from ppl who took advantage of the situation. Nowadays it's pretty levelled again as those greedy bastards realised that they couldn't keep up with this scam and lowered the prices.

Big benefit of the Euro is international travel and trade. I personally think it's great that I don't have to count back, don't have to go to an exchange and ALWAYS losing money in the process of having my dough exchanged for some other currency.

I think in the long run it would be very good for PL if they would adopt the Euro. It will increase their position in the market and has loads of other benefits for country and ppl.

It's nonsense to state that the Euro will cause bancrupcies. The small ppl who go bancrupt with the coming of the Euro would've either go bancrupt anyway OR they are living of loads of illigal black money, which the coming of the Euor will render useless.

What I find funny that on this thread there are Americans present that advise against the Euro, saying that the small ppl will lose out on the Euro. What the heck? Americans don't know about the workings of this system, heck, they barely know how their own system works, so it would be appreciated if they didn't participate, or if they do, bring in some constructive ideas, comments, or sth and not negativism, scaring ppl to bits.

As far as the UK is concerned. They are being put under considerable pressure to adopt the Euro as well. Not only from the EU, but also by captains of industry as well, who see millions and millions of dollars/pounds/euros go down the drain due to the exhorbitant exchange rates.

The minuscule benefits to business don't outweigh the lack of monetary control for the state. The countries that haven't adopted the euro haven't seen any drop in trade.

monetary control of the state? Let me tell you: millions and millions are getting lost every week/month due to exchange rates. The countries who haven't adopted the Euro are doing less than the ones that did. I wouldn't want to take Greece as an example, they fcuk up everything anyway, Euro or no Euro. And why is there so much pressure from within in those non-Euro countries to adopt it?

>^..^<

M-G (Euro would be a blessing for PL)
skysoulmate 14 | 1,296
20 Apr 2010  #17
US or EU?

...or Canada, Australia, New Zealand... ;)
convex 20 | 3,980
20 Apr 2010  #18
What I find funny that on this thread there are Americans present that advise against the Euro, saying that the small ppl will lose out on the Euro. What the heck? Americans don't know about the workings of this system, heck, they barely know how their own system works, so it would be appreciated if they didn't participate, or if they do, bring in some constructive ideas, comments, or sth and not negativism, scaring ppl to bits.

Yea, no clue about the monetary system. Anyway, individuals see a short term benefit because they don't have to exchange money, fair enough. The long term loss comes from lack of control of the money supply. When you lose control of the money supply, you lose control of being able to devalue your currency as a stop gap for bankruptcy and economic slowdown. Seems like your ideas just lightly scratch the surface.

monetary control of the state? Let me tell you: millions and millions are getting lost every week/month due to exchange rates. Yes the countries who haven't adopted the Euro are doing less than the ones that did. I wouldn't want to take Greece as an example, they fcuk up everything anyway, Euro or no Euro. And why is there so much pressure from within in those non-Euro countries to adopt it?

Denmark, Sweden, the UK, Norway, Switzerland....problems with trade?

How are things going in Slovakia since they adopted the Euro? Ask the Hungarians, they're seeing the benefits...

There is pressure to adopt in CEE, because there was no opt-out clause.

How are millions and millions being lost? You ever heard of hedging? Forward contracts? You know what the spread is on currency transactions that aren't done at a little hut? How do you think Poland would have fared over the last couple of years had they not devalued their currency? Countries in the Eurozone can't devalue their currency, so they go into massive debt and have to declare bankruptcy and completely destroy their credit rating, as opposed to increasing the money supply and living with the inflation.

In the UK, the captains of industry are quite happy with the pound....because they can influence it. Notice darling pumping money into the economy? Quantitative easing is not possible when you lose control of monetary policy.

Just for shits and giggles, here is the current spread for GBPUSD

Bid Offer
1.5395 1.5400

you can work out the percent. transaction fees are lower than the spread.
MareGaea 29 | 2,753
20 Apr 2010  #19
hedging?

Well, there we have one of the causes of the current crisis :)

In the UK, the captains of industry are quite happy with the pound....

imsfx.co.uk/daily_report/march-2010/buying-euros-09-03-2010.htm

How are things going in Slovakia since they adopted the Euro?

That's only a little over a year ago. How was PL doing one year after the revolution?

While for an individual conversion fees may not be that high, they can add up pretty quickly if you do a lot of trade abroad and since Britain has to do a lot of trade abroad, money is being lost on quite a big scale: 3 per cent per transaction. May not seem much, but 3 per cent of, say, a million is 30.000. A lot of money, I would say if you regularly perform transactions of that magnitude abroad.

>^..^<

M-G (tiens)
convex 20 | 3,980
20 Apr 2010  #20
Well, there we have one of the causes of the current crisis :)

Explain how hedging to reduce exposure is a cause of the current crisis. How you hedge on the other hand... But the same can be said for investing. So is investing also a major cause of the current crisis?

That's only a little over a year ago. How was PL doing one year after the revolution?

There was a revolution? SK was part of the ERM for a while, and once it tightened up, growth petered off. Anyway, how has/will the euro benefit Slovakia vs the Czechs and their continued use of the crown?

While for an individual conversion fees may not be that high, they can add up pretty quickly if you do a lot of trade abroad and since Britain has to do a lot of trade abroad, money is being lost on quite a big scale: 3 per cent per transaction. May not seem much, but 3 per cent of, say, a million is 30.000. A lot of money, I would say if you regularly perform transactions of that magnitude abroad.

Individuals don't make up the majority of international trade. 99% of money that changes hands are non cash transactions, in which the transaction fee is way, way, way lower than 3%. My bank is very very close to the spot rate on non cash transactions.

You're talking about a little itty bitty benefit to people (who will of course moan because prices will go up) vs. loss of control of the money supply. That doesn't seem like a good trade.
southern 76 | 7,103
20 Apr 2010  #21
The benefits of the euro is that you get close to Germans(your dream).
jeden - | 226
20 Apr 2010  #22
southern

An Germans pay for your economic problems ;)

where is EURO there is recession, the only benefit of having euro ( for Poland) is that The UE don`t want to "print" money opposit to stupid Bernanke policy in USA
convex 20 | 3,980
20 Apr 2010  #23
where is EURO there is recession, the only benefit of having euro ( for Poland) is that The UE don`t want to "print" money opposit to stupid Bernanke policy in USA

Ofcourse...but they are.
Lonman 4 | 111
21 Apr 2010  #24
time means
let me check the rates then I will tell ya. :) But you did pick up on my American hint.
cdnpp 1 | 4
21 Apr 2010  #25
I believe one of the main benefits is lower borrowing costs because you're seen as less risky if you're part of the eurozone. But I'm not sure that's the case anymore given Greece's problems..
Soros2010
7 May 2010  #26
Prices will artificially go up for everything, however the salaries will not go up also.

So the Euro adoption will kind of destroy Polish economy.

Advantages:... none that I can think of.

Disadvantages: too many to list here.
And the globalists will fill up their agenda and check at countries destroyed Poland too
hague1cmaeron 14 | 1,377
7 May 2010  #27
Can you give me better answers. Will this hurt Poland in the long run or what? I don't want my poor Poland to go down.

Calm down it will take Poland at least until 2014-2015 before they join the Euro, when all this instability will blow over.
MareGaea 29 | 2,753
7 May 2010  #28
How did Britain get away with this?

Because Britain wants to be part of Europe and yet they don't. But it's getting better, I think. At least not as rabiate anti-European as Thatcher and her pet-dog Major, that is.

One shouldn't blame the Euro for what's currently happening in Greece. Greece's previous government(s) lied to the EU and made a mess of their own economics. The current government is left with the ruins of that. But it's only a Greek thing, the Euro cannot be held responsible for that. Although we suffer the consequences of Greek mismanagement and I dearly wished the EU had thought more carefully and deeply before letting the Greek in.

As I said before, when Churchill and Stalin divided Europe, Churchill got Greece on the premises that Stalin would get Poland. Given the current situation, I'd rather let Stalin have Greece and Churchill have Poland. As I don't think Poland would've messed things up so badly as the Greek did.

>^..^<

M-G (likes Greek food though)
Ziemowit 12 | 3,358
7 May 2010  #29
One shouldn't blame the Euro for what's currently happening in Greece. Greece's previous government(s) lied to the EU and made a mess of their own economics.

Why shoudn't we? In accountancy and the financial world in general there are lots of instruments to measure someone's credibility and their accuracy in reporting. If the highly-paid EU officials don't want to apply these instruments, take everything as plain truth, and let countries lie to them, why shouldn't we ask them: what are you paid for? what is your role? what is your responsibility as a central banker of the common currency?
MareGaea 29 | 2,753
7 May 2010  #30
You got a point there. One could indeed ask himself, why are these officials there when they don't do their job? But then again, name me one (Euro-) country that likes some smartcrack nosing in their financial household. And you cannot blame the Euro as such for Greece lying to the commission. Greece shouldn't have lied in the first place and secondly, if we cannot trust our fellow EU countries anymore, then what the heck are we doing? I would say that Greece gets 3 years to make stuff in order again. If they cannot make that and still need more money, I'd say, out with them. They're bringing everybody else down. All the others who did their homework nicely and didn't have any problems at all, but are being dragged down now by some lying country.

Recently I read that ppl with "dangerous" jobs, like hairdressers, tv-presenters and musicians that play on wind-instruments (I definitively kid you not!!) are allowed to retire at 50 (women) and 55 (men) and then receive more money than they did while they were working...Ridiculous!! I'd say, cut down severely on that and let them work until 65, like in most EU countries and cut the moneys they get from the government in half. Even if you have never worked one single day in your life, your retirement pay from the government will be about 1500 Euros, that is more than the average salary in the Netherlands (not talking about educated jobs). Knowing that, it kinda makes me sick to see those old bags demonstrate to keep their high income for free. Some of them are not even 60. My dad had to work until he was 65 and then had to beg to get some state pension beside his regular pension for years. And then we are supposed to finance their crap? Fcuking lying and cheating bastards!

Didn't mean to rant and rave, but I just hate to see good countries go down because of one lying bytch like Greece, abusing the system for so long and then lying to us and then play Santa Claus with our money and then when the shyte hits the fan, we can come to the rescue? I understand why the EU does it, though: if they don't, the consequences will be even more severe. Some nice fellow EU country we have in Greece.

>^..^<

M-G (likes Greek food though)


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