Tomjames Posted June 9, 2016 Share Posted June 9, 2016 Do you reckon France going under would have no effect on us if we're not in the EU.. 2nd point..Interesting...can you provide a link for this "act"? I think you should answer the first question because you made the original assertion. Does being in the EU or out have the same or less effect on the UK ,should Italy & France go bust? Link to comment Share on other sites More sharing options...
JFKvsNixon Posted June 9, 2016 Share Posted June 9, 2016 How come? We don't have to be involved in bail outs outside the EU. If France went down, the markets would loose all confidence in sovereign debt and avoid it like the plague, what borrowing we'd need to have would be impossibly expensive to service. That's ignoring all the other economic issues such as how the loss of trade would cost Europe and the Worlds economy. Link to comment Share on other sites More sharing options...
Tomjames Posted June 9, 2016 Share Posted June 9, 2016 If France went down, the markets would loose all confidence in sovereign debt and avoid it like the plague, what borrowing we'd need to have would be impossibly expensive to service. That's ignoring all the other economic issues such as how the loss of trade would cost Europe and the Worlds economy. Why would there be a loss of trade? All going bankrupt means is you can't service your debts. Who pays for this? Link to comment Share on other sites More sharing options...
unbeliever Posted June 9, 2016 Share Posted June 9, 2016 Why would there be a loss of trade? All going bankrupt means is you can't service your debts. Who pays for this? Traditionally there would be a devaluation of currency, a writing off of debt, and a lot of austerity in France. But that's not what happened in Greece. The EU is both a state and not a state. Some will think the rest of the EU should foot the bill, others will not. This is one of the many problems with the half-integrated Eurozone. Link to comment Share on other sites More sharing options...
L00b Posted June 9, 2016 Share Posted June 9, 2016 How come? We don't have to be involved in bail outs outside the EU.We don't have to be involved in bail outs inside the EU either. I suggest you read up about the ESM, the EFSM and the EFSF The EU also passed an act where it can request any amount from the UK. Essentially it's an open cheque book. Link please? Link to comment Share on other sites More sharing options...
JFKvsNixon Posted June 9, 2016 Share Posted June 9, 2016 Why would there be a loss of trade? All going bankrupt means is you can't service your debts. Who pays for this? I'm assuming that a bankrupt France would import an awful lot less, so this would hurt the worlds economy. This would be a minor problem compared to a complete lose of confidence in sovereign debt that that a French bankruptcy would bring. We currently spend a lot more money than we take in via taxes. If we had difficulty borrowing the money to cover that spending, which would happen in the event of a French bankruptcy, it would make any previous economic crisis this country's faced seem trivial. Link to comment Share on other sites More sharing options...
Tomjames Posted June 9, 2016 Share Posted June 9, 2016 We don't have to be involved in bail outs inside the EU either. I suggest you read up about the ESM, the EFSM and the EFSF Link please? Alright L00b, more reading. Get to the bottom of this ---------- Post added 09-06-2016 at 13:08 ---------- Link please? Trying to find it. Can't remember off hand. Link to comment Share on other sites More sharing options...
truman Posted June 9, 2016 Share Posted June 9, 2016 Link please? I already asked.. Link to comment Share on other sites More sharing options...
L00b Posted June 9, 2016 Share Posted June 9, 2016 I already asked..Alright, alright, I'll wait my turn... ...Brits and their bloody orderly queues! Link to comment Share on other sites More sharing options...
truman Posted June 9, 2016 Share Posted June 9, 2016 Alright, alright, I'll wait my turn... ...Brits and their bloody orderly queues! Look,when I get it I'll share it with you..deal? Link to comment Share on other sites More sharing options...
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