Good news rarely stays at the top of the media agenda for long. Waking up to this morning's news of Ireland's accelerating financial crisis after the joy of yesterday announcent of Royal nuptials, was a stark reminder of this.
Ireland is apparently on the verge of bankcrupcy, as was Greece until it was bailed out by the European Union. And we are told that Portugal and Spain are also facing the prospect of financial collapse. These four weak links in the Euro chain have been nicknamed the PIGS. The big worry is that the PIGS could really mess with the stability of the Euro, and even jeopardise the currency's future.
Your grandfather was very excited by the introduction of the Euro at the start of 2002. Less than 60 years after this continent was torn apart by terrible conflict, former enemies were now sharing the same banknotes. I am a passonate supporter of the European Union. It may have its imperfections, but it is a miracle of mankind for nations to collaborate so closely on important issues of common interest. I am not discouraged by the seeminly endless political bickering between member states. Jaw, jaw is far better than war, war -- to coin a phrase of Winston Churchill's.
But I am worried that the current financial problems facing four of the 16 countries using the Euro could fatally undermine the currency's future. I was told the other day that the Germans never destroyed their old Marks, and that the banknotes are held in secure storage in case the government were to urgently decide to leave the Euro. If Germany were to quit, this would surely result in the currency's demise.
As of now, Britain is still not in the Euro and continues to use the good old Pound. I wonder whether this currency will still be around by the time you are old enough to read this blog. It's my hope that our politicians will have the courage to stregnthen the Euro and ensure its future stability; and that Britain will show its confidence in the project by joining the Euro in the not-to-distant future.
But until the current financial hurricane passes, all we can expect is for the European Union, the International Monetary Fund and others to help to keep ailing Euro economies above water. When the economy bucks up and the sun comes out again, let's hope that as optimism grows, so does peoples appetite for the Euro.
One financial postscript from yesterday's news of William and Kate's impending wedding, is that some economists are predicting that the event will bring in more than a billion dollars to the British economy. At least we have a wedding to look forward to.
Grandpa Jonathan
Prague, Czech Rebublic
