Portugal to leave the Euro?

Holy Cow

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In an interview published today, the Portuguese foreign minister says that they must consider leaving the Euro if there is not a political consensus in the country on how to deal with the confidence crisis.

This is a very big story, which is naturally enough being ignored by RTE and the likes.

Minister says Portugal could be pushed out of euro | Reuters
 
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Tigris Celtica

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It was complete madness for Ireland to join the Euro when the UK didn't - But ah shure all the troglodyte Brit bashers loved it at the time.....:rolleyes:
 

Holy Cow

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This is a massive story. A senior minister in a government is talking about the possibility of leaving the currency will send shockwaves through the markets.
 
D

Deleted member 17573

This is a massive story. A senior minister in a government is talking about the possibility of leaving the currency will send shockwaves through the markets.
Read your link - he´s speaking to a domestic agenda - trying to frighten the people into believing that there is a danger of their having to leave the euro - at least it proves that the people of Portugal have enough sense to realise the value of being in the eurozone.
 

Tammie

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It was bound to happen sooner or later, it will send shivers throught the markets alright. Is it likely Ireland will follow?? No wonder the G8 were trying to reassure us with their waves on the telly last night though for a couple of moments I thought they were waving at the unfortunate demise of Mcnamara construction.
 

Limerick Lad

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This is a massive story. A senior minister in a government is talking about the possibility of leaving the currency will send shockwaves through the markets.
It's a senior government minister attempting a "John Gormley", trying to force opposition parties into a political consensus in order to neutralise any political fallout and damage to his political party's future electoral prospects in upcoming elections.
 

Holy Cow

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Read your link - he´s speaking to a domestic agenda - trying to frighten the people into believing that there is a danger of their having to leave the euro - at least it proves that the people of Portugal have enough sense to realise the value of being in the eurozone.
There is no such thing a domestic agenda since some people come up with some gadget called the internet.

Now, read the link, there is a very strong possibility of an election there very soon, just like here. How does that pan for the euro?
 

SideysGhost

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These things have a way of taking on a life of their own. Once the mere possibility - even if it is being used as a bogeymonstering threat by a professional liar, sorry politician - gets out into the open and people start talking about countries being forced out of the Euro as a live issue, then the dominoes will fall.

As I said earlier today, it depends on the size of the "contagion" everyone seems to believe exists. If it is cheaper to boot Ireland and Portugal out and use the "bailout" money that would have gone to those countries to instead repair the resulting damage to the French and German banks, then that is what will happen.
 

jackryan

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Does anyone know if a country leaves the euro does it affect the euro tracker mortages?
 

hiding behind a poster

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Does anyone know if a country leaves the euro does it affect the euro tracker mortages?
If a country left the Euro, the tracker rate would be the least of your worries. Having to pay back a debt in Euros when your own currency starts its life by losing value would finish you off quickly enough.
 

jackryan

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If a country left the Euro, the tracker rate would be the least of your worries. Having to pay back a debt in Euros when your own currency starts its life by losing value would finish you off quickly enough.
And buying all ure imports including oil which is on the rise?
 

Delarivier

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It's a senior government minister attempting a "John Gormley", trying to force opposition parties into a political consensus in order to neutralise any political fallout and damage to his political party's future electoral prospects in upcoming elections.
I had a quick look at the online front page of the Lisbon newspaper Diário de Noticías and he is calling for a ''deep change of government'' and a coalition. Does any of this sound familiar?
 

DeGaulle 2.0

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If a country left the Euro, the tracker rate would be the least of your worries. Having to pay back a debt in Euros when your own currency starts its life by losing value would finish you off quickly enough.
Just as a point of interest, Poland is not in the eurozone - its currency is the zloty - but over 62% of Polish mortgages are in Swiss Francs, Euros or Dollars. Another disaster waiting to happen.
 

jane5

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This idea of "the mortgages are in euros and will be paid back in euros" has been bandied about a lot, it is however, incorrect.

What happens when a country changes currency is this:
Everything is changed into the new currency. Everything. The value of the new currency is whatever it is initially assigned to be, safe to assume the Punt Nua would be a fraction of the euro initially.

So your 300,000 mortgage in euros is converted into, say 500,000 Punt Nuas at the outset. Then devaluing starts. Then inflation starts, and with that, usually wage rises. So even though you owe 500,000 Punt Nuas on your house, your wage rises from say, 30k a year to 50k, then 65, and you become more able to service the mortgage which was converted on the day of change to the new currency, when it was worth more than it is now.

So the mortgage crisis is averted, effectively people pay them off in full, early.

The downside would be people on fixed incomes, such as pensions, but the State pension could be adjusted accordingly, and overall, leaving the Euro is our best option also.

Default and burn the bondholders, leave the euro, devalue our new currency and drop the corpo tax rate to 10%. These are our best options.
 

bormotello

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unfortunately leaving euro is only it is only way to honour CP deal and reduce public spending
 

spotty

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This idea of "the mortgages are in euros and will be paid back in euros" has been bandied about a lot, it is however, incorrect.

What happens when a country changes currency is this:
Everything is changed into the new currency. Everything. The value of the new currency is whatever it is initially assigned to be, safe to assume the Punt Nua would be a fraction of the euro initially.

So your 300,000 mortgage in euros is converted into, say 500,000 Punt Nuas at the outset. Then devaluing starts. Then inflation starts, and with that, usually wage rises. So even though you owe 500,000 Punt Nuas on your house, your wage rises from say, 30k a year to 50k, then 65, and you become more able to service the mortgage which was converted on the day of change to the new currency, when it was worth more than it is now.

So the mortgage crisis is averted, effectively people pay them off in full, early.

The downside would be people on fixed incomes, such as pensions, but the State pension could be adjusted accordingly, and overall, leaving the Euro is our best option also.

Default and burn the bondholders, leave the euro, devalue our new currency and drop the corpo tax rate to 10%. These are our best options.
The problem is that our sovereign debt would remain in Euros. And Dollars.
 

Cato

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If a country left the Euro, the tracker rate would be the least of your worries. Having to pay back a debt in Euros when your own currency starts its life by losing value would finish you off quickly enough.
Could the government as part of the legislation covering the change in currency mandate that all debts and deposits held in Irish banks are converted to the Punt Nua at the time of the currency change?
 


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