Two Tier Europe re ECB

[wildgoose]

In the coming months we will be threatened constantly about a two tier europe. Worth noting that a two tier europe already exists. The executive board of the European Central bank has six members. the big four in the Eurozone (France, Germany, Italy & Spain) are permanent members with the other two spots availible to the remaining members (although iceland will be excluded if it joins the euro as its non-EU).

The two tier is those in both the euro and Schengen and the rest of the EU.

[eurosceptic]

But how are those who have not signed up to both euro and schengen disadvantaged? Those who have retained their national currencies have done so for solid economic reasons. Flights & ferries between schengen and non-schengen countries involve waiting for 1 or 2 minutes at passport control which is irrelavant as it will take much longer for your bags to come through. Actually UK & Ourselves benefit from being outside schengen as we dont have to have ID cards!

[meriwether]

Eurosceptic wrote:

So how much pain are you willing to take for the european cause. Interest rates are set to suit germany at the minute, so they are going up to cool the german economy while irish mortgage holders like myself get shafted. How many defaulted irish mortgages is acceptable pain to you? Are you prepared to default on your own mortgage and go into negative equity to ease german inflation?

What about german mortgage holders?
They're getting shafted too also, aren't they?

I have a question.
What do you think a domestically set Interest rate would be currently if we had our Central Bank?

[blucey]

Eurosceptic wrote:

So how much pain are you willing to take for the european cause. Interest rates are set to suit germany at the minute, so they are going up to cool the german economy while irish mortgage holders like myself get shafted. How many defaulted irish mortgages is acceptable pain to you? Are you prepared to default on your own mortgage and go into negative equity to ease german inflation?

What about german mortgage holders?
They're getting shafted too also, aren't they?

I have a question.
What do you think a domestically set Interest rate would be currently if we had our Central Bank?

Meri the Little Irelanders wouldnt care. It would be "our" interest rate. We would be poor but proud....

[meriwether]

Eurosceptic wrote:

So how much pain are you willing to take for the european cause. Interest rates are set to suit germany at the minute, so they are going up to cool the german economy while irish mortgage holders like myself get shafted. How many defaulted irish mortgages is acceptable pain to you? Are you prepared to default on your own mortgage and go into negative equity to ease german inflation?

What about german mortgage holders?
They're getting shafted too also, aren't they?

I have a question.
What do you think a domestically set Interest rate would be currently if we had our Central Bank?

Meri the Little Irelanders wouldnt care. It would be "our" interest rate. We would be poor but proud....

Indeed.
The No to Lsbon crowd were at pains to point out at all times that they were 'Pro-EU' but that this was a bad treaty.

Seems a lot of them aren't that Pro-EU after all.

[Ard-Taoiseach]

In the coming months we will be threatened constantly about a two tier europe. Worth noting that a two tier europe already exists. The executive board of the European Central bank has six members. the big four in the Eurozone (France, Germany, Italy & Spain) are permanent members with the other two spots availible to the remaining members (although iceland will be excluded if it joins the euro as its non-EU).

France, Germany, Italy and Spain represent over 60% of eurozone GDP so they should be given permanent representation at the ECB. Their economic weight is such that their interests should be adequately represented at ECB meetings. We have enough representation ourselves considering we account for about 2% of eurozone GDP.

[hiker]

The two tier is those in both the euro and Schengen and the rest of the EU.

I agree with you although less on the Shengan thing.

I think with the current financial crisis, the Eurozone is acting in concert, whilst the rest of the EU are strugling to find their way.
Spain and Ireland are hurting now but its good medicine, I think, in the long run.

Without having any stats to back it up, I think the ECB may take the oppertunity of the financial crisis to attempt to align all the economies in the Eurozone. If all the economies are together at the same point in the economic cycle, it will be far more beneficial for the Eurozone.
I know this is not part of their mandate(inflation is ) but I would say trichet would be gagging to align all the states at roughly the same point in the economic cyle. My impression is that Ireland and Spain are most out of line but he is prepared to take the heat from them in order to get all the economies into the same position.