"Dysfunctional EU"

[Jimgym]

An interesting read from todays Telegraph. George Soros giving his thoughts on the current state of the EU, makes for unpleasant reading!



The European Union's "dysfunctional" institutions and austerity diktats have plunged it into an existential crisis that will require the bloc to reinvent itself to survive, George Soros has warned.
The billionaire investor said the EU had "lost its momentum" as he urged policymakers to abandon hopes of "ever closer union" driven by a top-down approach from Brussels.
He warned that a split among EU countries that began at the start of the financial crisis in 2008 had been exacerbated by "outdated treaties".This had transformed the eurozone into a series of creditor and debtor nations overseen by inept institutions that had stirred up resentment in the bloc.
"The European Union is now in an existential crisis," Mr Soros told an audience in Brussels. "Most Europeans of my generation were supporters of further integration. Subsequent generations came to regard the EU as an enemy that deprives them of a secure and promising future."
http://www.telegraph.co.uk/business/201 ... rge-soros/

[cyprusgrump]

That's just Mr Soros' opinion. The EU, whose currency over recent years has proved remarkably resilient and robust, and whose economies are largely doing very well indeed, might beg to differ.

The EU has lost it's momentum? Where did he get that from? Aside from the UK leaving the EU, the bond between the 27 remaining states has never been stronger. Long may it remain so.

Well, 'largely' is doing a huge amount of work in that sentence!

I'm sure the millions of unemployed in the Southern European states and the countries that have seen their economies stagnate because of the €uro would have something to say about that...

Still, keep listening to the echo chamber...

[Poppy]

Thanks for posting this interesting article. It certainly makes sense what he is saying.Certainly the point he makes about creditor and debitor nations makes sense and I don't know where you have been Lloyd but there is not unity in the EU, many of them are resisting some EU policies and only the other day was it not Poland who were refusing to accept their quota of immigrants? All the countries are worried about the loss of the UK contributions,the germans and french saying they cannot increase their contributions to fill the gap and the weaker countries worried that they will not receive the amounts they require.
This guy is not a billionnaire for nothing and I respect his opinions.

[Jimgym]

George Soros, the guy who destabilises economies just for fun, aye right.

Perhaps you'd care to comment on some of the issues and points he raises?

[Ramone]

I tend to agree with George Soros on this one.
HIC
" whose economies are largely doing very well indeed "
Spain, Portugal, Italy, Greece, to mention a few are not " doing very well indeed".

[kingfisher]

I believe the US and UK used quantitative easing (money printing/deflation) to good effect for a period after the 2008 crash.
To the best of my knowledge the ECB has been doing just that continuously for the past several years, and plans to continue doing so indefinitely.
At 80 billion euros per month, this works out at nearly 3 billion a day, or 6 euros a day for every man woman and child in the Eurozone.
And with almost zero interest rates, this means we're all getting poorer by over 2000 euros per annum.
I don't call that doing very well indeed.
And all "backed" by mainly junk bonds, much from the southern European states..Perhaps Soros might know a bit more than us!

[cyprusgrump]

Didn't stop you nit-picking that word of course - as per your usual fashion

It isn't nit-picking to point out how ridiculously far you have stretched the truth to make your point...

[Jimgym]

Strong and Stable, really!
http://www.independent.co.uk/news/busin ... 66286.html

Yet others disagree. From todays Business section the Telegraph. IG: May looks like a blockbuster month for the UK economy
Coming off the back of yesterday’s impressively resilient manufacturing PMI reading, Joshua Mahony, of IG, says all eye were on the construction reading this morning to see whether Brexit uncertainty is hitting investment in the sector.

He added: "With the UK construction PMI reading hitting the highest level since 2015, it is clear that the economy is moving into a period of strength, throwing doubt into the common belief that we are shifting into a period of weakness for the UK.

"Monday’s services PMI reading is certainly the big one which will really have by far the biggest impact on growth expectations, yet if the manufacturing and construction readings are anything to go by, May looks like a blockbuster month for the UK economy."

[smudger]

Excellent article Jimgym, thanks for posting.

None so blind as those who cannot see

[outasite]

What I really do not understand, Happy in Cyprus is why you continue to make comment about the UK leaving your beloved EU. You live in Cyprus, your business is in Cyprus, and yet you continually deride the vote to leave. You continually deride the people who voted to leave and you continually praise the EU to the high heavens. You are evidently an avid supporter of the EU, which of course is totally your right, but I just wonder why you don't stop telling the forum that the UK will become a 3rd world basket case once it leaves.
If you are so absolutely very sure about that, then why on earth do you not renounce your UK citizenship and become a Cypriot citizen thereby allowing you to enjoy all the benefits of continued EU membership and none of the perceived problems that you seem to think will fall upon UK citizens when the UK finally leaves.

[Jimgym]

I believe the US and UK used quantitative easing (money printing/deflation) to good effect for a period after the 2008 crash.
To the best of my knowledge the ECB has been doing just that continuously for the past several years, and plans to continue doing so indefinitely.
At 80 billion euros per month, this works out at nearly 3 billion a day, or 6 euros a day for every man woman and child in the Eurozone.
And with almost zero interest rates, this means we're all getting poorer by over 2000 euros per annum.
I don't call that doing very well indeed.
And all "backed" by mainly junk bonds, much from the southern European states..Perhaps Soros might know a bit more than us!

Wow, seriously? That is really, really scary. I thought the EU had stopped their quantitative easing a long time ago. That is a mind blowing amount of money.

[kingfisher]

Good morning Jimgym, please see Economist, link below.

http://www.economist.com/news/finance-a ... ets-uneasy

[Poppy]

I have to say HIC that I am amazed that you say you are not going to vote in next weeks election!! Is that possibly because whoever gets in you can say well I didn't vote for them and therefore continue being always right?
For someone who takes such an immense interest in politics and then declines to vote is incomprehensible.

[cyprusgrump]

I have to say HIC that I am amazed that you say you are not going to vote in next weeks election!! Is that possibly because whoever gets in you can say well I didn't vote for them and therefore continue being always right?
For someone who takes such an immense interest in politics and then declines to vote is incomprehensible.

Ah, but you forget that in HiC's world it is perfectly normal to hold two contradictory positions simultaneously.

'All because of Brexit' and 'Brexit hasn't happened yet' being just one example...

Cognitive Dissonance.

[Firefly]

Outasite

Good post, and good points.

Poppy

Re: HIC, money where mouth is comes to mind.

Jackie

[Jim B]

What I really do not understand, Happy in Cyprus is why you continue to make comment about the UK leaving your beloved EU. You live in Cyprus, your business is in Cyprus, and yet you continually deride the vote to leave. You continually deride the people who voted to leave and you continually praise the EU to the high heavens. You are evidently an avid supporter of the EU, which of course is totally your right, but I just wonder why you don't stop telling the forum that the UK will become a 3rd world basket case once it leaves.
If you are so absolutely very sure about that, then why on earth do you not renounce your UK citizenship and become a Cypriot citizen thereby allowing you to enjoy all the benefits of continued EU membership and none of the perceived problems that you seem to think will fall upon UK citizens when the UK finally leaves.

British Citizens can hold dual nationality and don't have to renounce their British Citizenship. If you get a Lawyer involved and you qualify you can fast track a Cypriot Passport for €6500.

[jeba]

If you are so absolutely very sure about that, then why on earth do you not renounce your UK citizenship and become a Cypriot citizen thereby allowing you to enjoy all the benefits of continued EU membership and none of the perceived problems that you seem to think will fall upon UK citizens when the UK finally leaves.

AFAIK you don´t have to renounce your first EU-citizenship in order to get another one.

[outasite]

Jim B and jeba,
I personally am not interested in getting dual citizenship with Cyprus.I have dual English and Irish citizenship. My question to HiC was why he doesn't renounce his UK citizenship as he evidently has no time for the UK since the Union voted leave, and in his post about voting he has no assets, no property and no business assets, and no plans to ever return. So I really do not understand why he keeps posting about the UK leaving the EU. I cannot think he is worried for the UK.

[Poppy]

But you did vote in the BREXIT vote did you not HIC? You don't care which Government gets in but you are concerned about BREXIT and how it impacts on you and your family?Sorry but it just does not make sense to me. I know that you have considered obtaining Cypriot citizenship but are you not concerned that Cyprus will be badly hit by the assumed reduction of financial help from the EU once the UK have exited.

[cyprusgrump]

Didn't vote in the referendum; neither do I vote in UK elections. Clearly we can't now change this daft decison. Son in UK voted for Brexit, so he will have to take whatever comes his way; serves him right

Wow!