"Finland's departure could strengthen the euro" - ReportsMonday, 07 November 2011
Finland, Greece, Portugal and Ireland could withdraw from the euro single currency. As this happens, it could do good for those countries and strengthen the euro, according to the Goldman Sachs Investment Officer, Jim O'Neill in an interview, write Finnish news paper, Taloussanomat.
That the euro countries have had difficulties among is very different hampers under O'Neill collaboration on the single currency.
“If we look backward, it is pretty clear that the initial states for the single currency may have been only Germany, France and the Benelux countries that were economically ideal for membership of the monetary union.”
O ' Neill notes that these countries have always had some form of monetary cooperation. In contrast, the other original members of the Monetary Union - Spain, Italy, Portugal, Ireland and Finland – for him became dubious members.
In this respect, Finland and Ireland could be willing to leave the euro zone. O'Neill was motivated by the fact that both countries are close to countries that do not belong to the euro area. For example, the case of Ireland there is Britain which is Ireland’s biggest trading partner and then Finland has Sweden.
“Had those countries joined the Euro, the single currency would have been strengthened,” says O'Neill.
This is not the first time Finland has intimated that it wants to pull out of the Euro single currency. This report could have been the continued means to look at how the Euro will behave if a member such as Finland withdraws from the single currency. The issue with Finland is that it is quite richer and its economy is doing better those Portuguese and Irish economies.
By Scancomark.se Team
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