Market meltdown teaches Europe that size really does matter

[Paul Gilbert]

LONDON — In the centre of Scotland this week, separatist leader Alex Salmond discovered that size has become a problem. He has pegged his political future to the idea of an “arc of prosperity” uniting small countries from Iceland to Ireland through Scotland to Scandinavia.

That sounded good two months ago, when those Celtic tigers and Icelandic miracles were the talk of the economic world and small countries were boasting about their big banks and independent currencies.

Suddenly, the “arc of prosperity” is being called an “arc of insolvency” as small countries have become the biggest victims of the financial crisis.

In the past few weeks, Iceland has gone bankrupt and is now being bailed out by the International Monetary Fund. Ireland is suffering Europe's first real recession and has slashed its government and raised taxes to keep its beleaguered banks afloat. Scandinavian countries are talking seriously for the first time of ditching their currencies, which have plummeted, in favour of joining the big, stable euro.

Full Article: http://www.theglobeandmail.com/servl...rnational/home

[Popsai]

I came in this thread thinking we were going to talk about penises.

You have failed me.

[Pan]

Scandinavian countries are talking seriously for the first time of ditching their currencies, which have plummeted, in favour of joining the big, stable euro.

Not really true. At least Sweden voted about it. The results were 55,9 % not in favor and 42,0 % in favor. I would probably say that was some serious shit.

[power_gamer_6]

Not really true. At least Sweden voted about it. The results were 55,9 % not in favor and 42,0 % in favor. I would probably say that was some serious shit.

If you read the article, you'll come across this:

Last week, Swedish Prime Minister Fredrik Reinfeldt walked into a European Union meeting and declared that he was seriously considering dumping the krona and joining the euro.
“When it's good weather, it's not such a big deal to have a currency of your own,” he told reporters. “But when it's a little bit unsafe out there, it's best to be inside a currency like the euro.”
He added: “We'll see what the Danes say and then we'll have a discussion in Sweden.”

And the article was dated October 21st, 2008, so this discussion has yet to happen.