Interesting times indeed Flu. I’ve been expecting the Euro to drop against the $ for sometime. I still have some unfinished projects in a certain EU part that were ceased due to the $ devaluation. Soon, things might be looking better.
Anywho, the issues spread beyond Greece and Portugal, it is a group named PIGS: Portugal, Ireland, Greece, and Spain. Also, Italy is not far behid…it could be PIIGS soon :).
The news in the EURO blog community is that the EU won’t bail out these countries and won’t reject them from the union….so, what would happen? Common answer: they will loose sovereignty. Initially, it’s just fiscal, but we know how that goes. In essense, the EU heads + IMF will stand by to bail them out, then they will take over the management of budget/approvals. IMF+EU will enforce, as it is now into works, a spartan plan of budget cuts combined with tax hikes (along with already mentioned extended age for retirement)….Problem solved 🙂
Of course, the greeks were already on the street before the final plans were even announced.
