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| Europe |
| Gladiators of the eurozone fight for life |
| 2004-10-18 |
| Fairly long for a Peshawar piece, but a good overview of the fragility and poor economic performance of the eurozone (the eurozone comprises those states which have adopted the euro - not to be confused with the EU, though it is a subset of the larger union.) For rent: amphitheatre, 160ft high, with seating capacity for 50,000. In need of refurbishment. Central location in eternal city, suitable for games, circuses and gladiatorial contests. They have not put a price on it yet, but if you fancy taking on the ultimate wreck as a second home, you might be able to rent the Colosseum in Rome. No, really. The giant arena, built by the emperor Vespasian in ad72, could soon be available as part of a programme by Silvio Berlusconi's government to meet its urgent need for cash. Here is what Daniele Molgora, a junior economics minister, said in an interview last week: "Selling the Colosseum? No. The national patrimony must be protected. But we have the most beautiful artistic possessions in the world and to think of leasing them to private individuals, under the control of local cultural authorities, would mean to raise income for the country." Mr Molgora risks being dispatched by some Russell Crowe lookalike, judging by the reaction of the Italian media and opposition parties. Just imagine the cries of indignation if some trunk-wearing Brit moved into a ruin in Pompeii, or Starbucks opened a branch in the Roman Forum. We should thank our lucky stars that, despite Labour's curious attempt to turn us into a Euro-economy - through its taxes, regulations, flirtation with the euro and now its desire to ratify the European Constitution - we are not yet in the position of Italy. Unlike in Britain, where growth, though slowing, is likely to be 3.5 per cent this year, the Italian economy is crawling along, as are those of France and Germany. Italy has the lowest birth rate of any advanced nation, and debts three times those of Britain. This year, according to the IMF, the Italian economy will grow at a paltry 1.4 per cent, followed by two per cent in 2005. Even those numbers could be overestimates. Since the IMF made its forecasts last month, the price of oil has shot above $50 a barrel, raising costs for the world economy generally. |
| Posted by:Bulldog |
| #19 China's fixed exchange rate is a problem for them. not us. They are destroying their own currency. |
| Posted by: Kalle (kafir forever) 2004-10-19 12:27:46 AM |
| #18 Ooh, Shipman! You're neck must be white. |
| Posted by: Mrs. Davis 2004-10-18 8:13:44 PM |
| #17 SPoD, Okay.... I'll bite. What's a Swamp Cooler, over than something to smuggle into Gainesville? |
| Posted by: Shipman 2004-10-18 8:10:02 PM |
| #16 I don't think a .5 Dollar against the EURO would be a bad thing it makes US exports more attractive. It makes China's fixed value the Yuan tied to the dollar a thing China will have to fix. I don't see it as a bad thing but I amnot so hot with economics I admit. Shoot I must be sub poor I don't have air conditioning. I have a floor furnace and a swamp cooler. |
| Posted by: Sock Puppet of Doom 2004-10-18 7:11:10 PM |
| #15 And they don't photograph too good anymore. |
| Posted by: Famous Roosevelt Gravy Train Graber 2004-10-18 6:50:49 PM |
| #14 Yeah, but the US poor got sh*t for nuance, and what good is a TV or a house, or 2 rooms without nuance? |
| Posted by: Shipman 2004-10-18 6:49:03 PM |
| #13 The following are what the US Census Bureau defines as poor, the old bureaucratic process of drawing a line on a statistical chart. Now there are classical or traditional poor in America, but their numbers drop so low, they begin to lose their political value to sell guilt and accumulate power. - Forty percent of all poor households own their own home. The average home owned by persons classified as poor by the Census Bureau is a three bedroom house with one and a half-baths, a garage, and a porch or patio. - Seventy-six percent of poor households have air conditioning. By contrast, 30 years ago, only 36 percent of the entire US population enjoyed air conditioning. - Only 6 percent of poor households are overcroweded. More than two-thirds have more than two rooms per person. - The average poor American has more living space than the average person [not classified as poor] in Paris, London, Vienna, Athens and other European cities. - Nearly three-quarters of poor households own a car; 30 percent own two or more cars. - Ninety-seven percent of poor households have a color television. Over half own two or more color televisions. - Seventy-eight percent have a VCR or DVD player; 62 percent have cable or satellite TV reception. - Seventy-three percent own a microwave oven, more than half have stereos, and a third have an automatic dishwasher. And the Euros expect to compete with a society whose poor do better than their average citizen? |
| Posted by: Don 2004-10-18 5:36:11 PM |
| #12 Lex: I don't know about that. Higher oil prices will mean more Euros have to be traded for dollars to buy the oil. That will push the Euro down, while it will tend to lift the dollar. American purchases will push the dollar back down, so maybe the dollar's a wash, but the Euro will drop. It won't do the Yen a lot of good, either. |
| Posted by: jackal 2004-10-18 3:36:32 PM |
| #11 "get used to it chaps, you'll be hearing it alot." I thought the Anti-Christ wasn't due for another several years. Maybe you are the false prophet that 's a bit early, for the gathering. |
| Posted by: Poison Reverse 2004-10-18 1:54:46 PM |
| #10 http://europa.eu.int/abc/symbols/anthem/index_en.htm |
| Posted by: AthiestSocialist!! 2004-10-18 1:14:07 PM |
| #9 Here is a link to the european anthem; get used to it chaps, you'll be hearing it alot. |
| Posted by: AthiestSocialist!! 2004-10-18 1:13:45 PM |
| #8 As energy prices rise watch the downward pressure on the EURO. You mean, downward pressure on the currency in which oil's priced. To the extent we're dependent on oil imports, oil's rise will cause the dollar to fall. |
| Posted by: lex 2004-10-18 11:55:51 AM |
| #7 It is actually worse than this article implies. Wolfgang Munchau writing in the Financial Times (registration required) had this to say: "National accounts should provide a true and fair statement of a country's financial position. This is not the case in the eurozone. The officially recorded deficits are those that governments have failed to hide from public view. As an economic statistic, they are close to meaningless. Yet the stability pact, the main instrument of policy co-ordination in the eurozone, relies almost exclusively on that statistic to enforce the rule that reported deficits must not exceed 3 per cent of gross domestic product. As long as the quality of national accounts remains in doubt, it would make a lot more sense to focus on a country's level of outstanding debt and future public-sector obligations, especially pension liabilities. By that measure, of course, several countries of the eurozone would be technically bankrupt and no government is likely to admit that." |
| Posted by: tipper 2004-10-18 10:42:33 AM |
| #6 The EUniks will start to panic when several Asian countries largely overtake them in terms of standard of living. Give it another 15-20 years. It's amazing what compound productivity growth does over a few decades, compared to massive unemployment, short work weeks, and a bankrupt Welfare State. As for the Norwegian oil fields, remember that Norway is not part of the EU... |
| Posted by: Kalle (kafir forever) 2004-10-18 10:33:18 AM |
| #5 The German Bundesbank was worried that the inflation-prone, olive-producing countries whose currencies had developed plenty of noughts over the years Is the olive cause or effect? Phil's right, if the Chineese would decouple the dollar would fall to it's rational level. |
| Posted by: Shipman 2004-10-18 8:14:09 AM |
| #4 SPoD the USD is still wildly overvalued. Its going to .5 Euros. It will be a major destabilizing event, although the instability will be mostly outside the USA. |
| Posted by: phil_b 2004-10-18 8:09:17 AM |
| #3 Mergers are not considered a sign of strength in declining industries or markets. |
| Posted by: Mrs. Davis 2004-10-18 7:41:49 AM |
| #2 When the going gets tough, they will most probably lay claim to the North Sea oil and gas fields for the common good, which will put the UK and Norway in an interesting position. |
| Posted by: Bulldog 2004-10-18 7:18:41 AM |
| #1 I am not planning on buying or holding any EUROs. one USD = 0.554078 GBP one USD = 0.80141 EUR As energy prices rise watch the downward pressure on the EURO. It won't be pretty. Even with the projected high cost of oil US growth will more then double that of the average EU nation this year. I can't think of many German, French or Italians who live in a oil and gas fields in their own country. How many barrels of Oil are in the German stragic oil reserve? The French one? How about Italy? I live right in the middle of 3 of them. Production may be going down but we still have Oil close. When and if times get tough we will be in better shape than they ever will be. |
| Posted by: Sock Puppet of Doom 2004-10-18 6:35:35 AM |