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If you turned the question around, and asked if it would be to Denmark's
advantage to lock into the Euro at too strong a rate, the answer would
clearly be negative. And that is the danger of entering against a weak
Euro - - your exports will forever be too expensive, you will never get
any capital investment from the rest of Europe, etc.
That said, my impression is that the no vote is less a verdict on the
Euro itself, and more of a general expression of dissatisfaction with the
evolution of a 'European government' without popular participation.
I have always expected a weak Euro, given the economic conditions in
the largest economies of Europe. As long as unemployment stays as high
as it is, I doubt the Euro will be able to make much of a move.
Regards
DanG
BobR wrote:
Question,
isn't it to the Danish advantage to have a low euro at the time they join
the common currency club should they vote to do so? Its been said
nothing happens by accident in politics. Is this low euro a sweetner
by its neighbors to come on board at an attractive price with the reward
an instant currency gain on a post vote rebound? Thursday is the
day of their vote. Will be rather interesting to see what the euro
and equity markets do following this vote. Perhaps this is too simplistic
reasoning. br
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