A letter from our Chairman, Edward Spalton, to the Derby Telegraph
We would be suffering a similar fate to the people of Greece if our politicians had taken us into the euro as many of them wished. We were and still are lumbered with massive government and private indebtedness but have been able to dodge many of the ill-effects because we still have our own currency.
The so-called “bail-outs” are essentially transfers of unrepayable debt, owed originally to German and French banks but now transferred to the public sector. Whatever the result of yesterday’s referendum, the outlook for Greece is bleak.
They already have real austerity. In the Greek NHS, infant mortality has increased massively – up 40%. With the return of the drachma, there would be a prospect of fairly rapid eventual recovery but probably even more hardship in the short term. So it’s a hard choice.
The euro is a political project to create political union. To avoid more countries threatening to leave like Greece, the countries of the Eurozone will have to form themselves into a single, economic, monetary government – in effect becoming one country with a permanent majority of votes within the EU. Such a treaty will take around four years to conclude under EU rules, so could not come into force before 2020. It will make permanent and formal the UK’s existing status as a second-rate member, paying a first-class subscription.
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