Euro Area

[gaelic cowboy]

This argument doesn't fly. The reason why the currency is in (perceived) trouble isn't because member states collect different amounts of taxes, but because some countries vastly outspent their taxation's income and accumulated a pile of debt. In theory they could have been disciplined a long time ago per existing EU criteria, but this has largely been an empty threat precisely because of the sovereignty-fetishists.

The EU doesn't need a permanent transfer union. Just because some American states can't be bothered to become financially self-sufficient doesn't mean we should accept the same from certain countries. At this moment helping out the PIGS countries may be necessary but it must never take permanent form. Their current problems will have to be solved one way or another, and in the future countries will have to be disciplined at the first sign of slacking off on their budgets.

Explain Ireland so???? we never broke the GDP debt ratio till the banks went under.

PVC is right

[Tellos Athenaios]

Explain Ireland so???? we never broke the GDP debt ratio till the banks went under.

Of course not. And everyone, from time to time will do it. The challenge is here not to let this be done out of lazy habit, because you can get away with it (once, or twice or thrice...).

Ireland is a classic example of what happens when a small country guarantees an entire tanking sector, one which represents an economic value that is simply far larger than what the country ordinarily deals with on its balance sheet. So the punch hits home much harder. That can't really be helped, you can't simply conjure such funds when you simply don't have it.