EUR, what is it good for?

Holland has benefited enormously from the euro. We have an enormous trade surplus, because of our export to those eurozone countries because of the euro.

Or, that is at least the excuse trotted out by our current Finance minister Jan-Kees de Jager (yes, one of THEM) in defence of decisions to give away all of our sovereignty in order to 'save the euro'. Supposedly it is in our own interest that the euro lives.

But is it true? Dutch daily De Pers does a nice bit of myth-busting. Conclusion: Busted!
The statement is untrue. Holland has not benefited 'enormously' from the euro. The shared currency did not lead to a greater exports to eurozone countries and a subsequent 'enormous' trade surplus. Holland has a surplus because it is competitive and thrifty.
While it is true the trade balance surplus has increased under the euro, that growth of surplus started already way back in the 1980's, according to the Central Bureau of Statistics (CBS).

The net effect of the euro on European trade has estimates ranging between zero en 10%, with the ECB itself estimating the effect to be in the lower end of the scale. Near zero, therefore.

Increased trade does not necessarily lead to a trade surplus. According to Central Planning Bureau economist Arjen Lejour there's an equal chance the increased trade would have cause increased imports, lowering the surplus.

That the surplus increased has two causes: Firstly, Holland is competitive because of moderate wages coupled with a high productivity. Secondly, the Dutch save more then they spend.

Besides, since 2002 Dutch exports to other eurozone countries has decreased from 61% to 58% of total exports, indicating that the Netherlands has benefited mostly from growth in world trade.

So, no measurable benefits. But the current crisis is one that was spawned by the very currency were/are promised to benefit from. What is the euro good for, anyway? Can we leave now?

8 reacties:

Sue Jameson zei

It's a tired excuse now. Do they think all trade will stop if the Euro & Eurozone fail? It's not likely. In any event, if both fail, it enables the exporting countries to become even more competitive as they have control of their currencies.

Bernd zei

Lights would go out and wars would break out if and when the French and the Dutch would vote against the EU constitution. No one, no journalist dared to put forth the question "how so?". And here we are. 
There's no politician that can disprove the statement that the surplus might very well have existed with bilateral trade agreements only. And is peace truly the result of having the EU? By now we are worse of: we have lost control over billions of euros because they end up in the EU budget and through there end up as mobile phones for the Rumanian unemployed; we have a notoriously unstable currency. In the mean time we have to cut expenses ourselves at the same time we are forced to contribute to an irrelevant economy that is Greece (only notable export: olives and feta and both products are heavily subsidised by.... you've guest it: the EU). And keep this up Brussels, and we will see a European war once again within this century.
Show us, concretely, objectively and honestly, that without the EU we would be worse (sadly, worse than this) of

Kleinverzet zei

"And is peace truly the result of having the EU?"

That's a big, fat negative! European peace since the '45 was NATO's doing. It had nothing to do with the EUnion or the EEC, no matter how much Barosso and van Rompuy are insisting it was them all along.

For the rest: True, that.

Kleinverzet zei

Then again, the EUnion has a habit of appropriating achievements of others as their own.

DP111 zei

KV

Take a look at thisGlobal Warming Could Prompt Alien Attack: NASABy Elvira Veksler | August 19, 2011 11:52 AM EDT Scientists said Thursday that "extraterrestrial environmentalists" could become so angry about what we have done to the planet that they may see us a threat to the intergalactic ecosystem -- and take action by attacking Earth."Humanity may just now be entering the period in which its rapid civilizational expansion could be detected by an ETI because our expansion is changing the composition of Earth's atmosphere (e.g. via greenhouse gas emissions), which therefore changes the spectral signature of Earth," the study added.http://www.ibtimes.com/articles/200769/20110819/alien-attack-nasa-global-warming.htmSo if we do not believe in AGW and act on it now by increasing taxation to zillions, alien environmentalists will attack.The Leftists and Warmists are getting so desperate that they are prepared to invoke alien attacks.

NASA has now been re-tasked from its Muslim outreach to rescue AGW. Read alsohttp://sultanknish.blogspot.com/2011/08/friday-afternoon-roundup-when-liberal.html

Apologies for being OT.

DP111 zei

KV

Your blog seem to be removing spaces and paragraph breaks. 

DP111 zei

KV

Take a look at this

Global Warming Could Prompt Alien Attack: NASA

By Elvira Veksler | August 19, 2011 11:52 AM EDT

Scientists said Thursday that "extraterrestrial environmentalists" could become so angry about what we have done to the planet that they may see us a threat to the intergalactic ecosystem -- and take action by attacking Earth."Humanity may just now be entering the period in which its rapid civilizational expansion could be detected by an ETI because our expansion is changing the composition of Earth's atmosphere (e.g. via greenhouse gas emissions), which therefore changes the spectral signature of Earth," the study added.

http://www.ibtimes.com/articles/200769/20110819/alien-attack-nasa-global-warming.htm

if we do not believe in AGW and act on it now by increasing taxation to zillions, alien environmentalists will attack.The Leftists and Warmists are getting so desperate that they are prepared to invoke alien attacks.

NASA has now been re-tasked from its Muslim outreach to rescue AGW. Read also
http://sultanknish.blogspot.com/2011/08/friday-afternoon-roundup-when-liberal.html

Apologies for being OT.

Klein Verzet zei

No problem. Always like to get tips. Not always able to follow up or post about them. But a little help is always appreciated.

In this case I'm ahead of you. Read about that absurdity this morning. I just couldn't post it sooner, because of work and life and all that other trivial stuff that gets in the way of blogging. But I just blogged it.

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