What Would Happen if the Euro Crashed?
Posted by Allison on 10 May 2012, 13:04
It is hard to imagine the world without the Euro in it. It may not have been around for very long when compared to other currencies, but it is certainly a staple ingredient in the world of financial currencies.
If you have been keeping up with the financial markets you will know there are perhaps more challenges now than ever that are facing the Euro. The exchange rate it has with various other currencies is under threat, and has recently been at its lowest point for quite some time. Is this the beginning of the end of the single currency? Is it reasonable to assume that no version of events would still have the currency in place several years from now?
Of course there have been threats before that the Euro would not last. Even when it was first launched there were those who did not believe it would still be here in the long term. But now events in the world as a whole have taken turns we would not have believed before. The stability of Greece – both its government and its society as a whole – is questionable. A new President in France has a whole new take on things and relations with Germany look very uncertain indeed. Where will things go from here? Could we see the back of the Euro – and if so, would this be the worst thing that could happen?
In reality we must watch to see how things play out. But governments that have reached voting time across Europe have already seen that unsettled and unhappy voters are ousting them from power. Which parties will gain a foothold as a result, and will this have an effect on the power of the Euro to maintain any kind of strength in Europe?
The truth is that few of us would be able to determine how things will eventually pan out in this respect. Most of us have little power to do anything about the events that will occur; we must simply watch and wait and see what the actions of the politicians lead to in future.