Euro is a disaster for us, says Italy's PM
By Ambrose Evans-Pritchard

From today's 'Daily Telegraph':

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Italy's premier, Silvio Berlusconi, called the euro a 'disaster' yesterday, confirming fears in Brussels he would seek re-election by lashing out at monetary union over coming months.

Mr Berlusconi blamed Romano Prodi, his chief rival and former EU commission head, for negotiating poor terms for Italy's EMU entry while prime minister in the 1990s. 'Prodi's euro has screwed everybody*. Italians are facing real difficulties', he said at a rally of his Forza Italia movement.

Thomas Meyer, an economist at Deutsche Bank, said Mr Berlusconi was playing a dangerous game that could haunt him: 'Comments like these from a prime minister could well reinforce concerns about the long-term stability of European monetary union'.

Italy is struggling to hold its own in the eurozone system after an alarming rise in unit labour costs - amounting to a 40pc loss of competitiveness against Germany in the past decade - a problem compounded by reliance on low-tech products such as shoes and textiles that compete directly with the Chinese.


[* P.S. But not the people of the United Kingdom LOL]

Are you ever going to get it into your head that metrication and a single european currency are two entirely seperate things?

The only thing that links the two, is that the reason people like you oppose them is the same.

re (Andy): "Are you ever going to get it into your head that metrication and a single european currency are two entirely seperate things?"

REPLY: Both compulsory metrication and adoption of the single european currency are subject to European Union Directives or Treaties. Didn't you know?

<<
REPLY: Both compulsory metrication and adoption of the single european currency are subject to European Union Directives or Treaties. Didn't you know?
>>

That is where the similarity ends.

BTW, the rules governing Daylight Saving is also subject to a European Union Directive. DOes this put Daylight Saving in the same category as the Euro or metication?

Wu (US) may not metricate worth a damn, but we do DST, and we have our own rule too. (Which we just changed to have an extra month of DST). I was hoping we'd only add a week and be the same dates as Europe.

Italian Prime Minister Silvio Berlusconi's comments were designed to create international uncertainty in the Euro and force its value down. The Italians in the past use to try to devalue the lira to increase the sale of the their products but that tactic only created high inflation and high debt. Romano Prodi brought Italy into the euro as a means to end that practice.

Berlusconi's comments have done nothing to weaken the euro as international investors know very well that both Berlusconi and Schröder will be replaced in up-coming elections with pro-euro and pro-reform candidates that will reverse a slow growing Europe unable to presently cope with globalization.

The only people who are really hoping for a euro collapse are the British. Their war against the euro continues to backfire. While the economies of the eurozone have actually shown improvement this year, the economy of the UK has fallen into a severe recession and no relief is in sight. Despite record high interest rates, the UK is unable to draw needed investment away from the eurozone. International traders consider the dollar, euro and yen to be the only currencies of worth in the world today.

When the Chinese unpegged their currency from the dollar, they repegged it to a basket of three currencies, the dollar, euro and yen. The Iranians also support the euro as do a number of nations who are waiting for them to begin oil sales in euros beginning next spring. Each time the euro is tested and challenged, it bounces back stronger.

The Tony Bennett's of the UK keep praying to their gods for the euro's fall all in the false hope it will revive the UK empire and make the pound currency and imperial units the world standard and that everyone will look up to the UK and the USA with their pound/dollar and imperial units as the co-rulers of the world. Well, keep dreaming! Keep hoping, but don't be surprised if things don't work out the way the British media reports.

The euro was created for a great purpose and that purpose will be fulfilled. There are very powerful banking and finance interests behind the euro. Doesn't anyone think it odd that the euro came into existence 5 years ago when London and New York said it would never get off of the ground? Three years later despite the doomsayers in New York and London, it became a cash currency and replaced the national currencies. And now, despite stepping on some loose stones it is still standing strong. Why? Because it is supported by very powerful interests who will destroy any entity that will stand in its way.

Does anyone notice the perfect timing of the London bombings? They came at the exact moment the euro was at its low point, and since then the euro has not only recovered, but the nations of Germany and Italy are now registering decreasing unemployment and increasing growth and confidence? Pakistani citizens of the UK may have been the bombers, but who backed them and supported them?

People like Tony can spout their rhetoric against the euro and the EU but they will only manage to give more reason to the backers of the euro to increase their actions against those whom they perceive as their enemies. The failure of the EU Constitution was actually a victory, not for your side but for those who want to unify the national governments under a more stricter set of rules. And when that day comes, it will be the Tony Bennett's who will be the first to be silenced.

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Wu (US) may not metricate worth a damn, but we do DST, and we have our own rule too. (Which we just changed to have an extra month of DST). I was hoping we'd only add a week and be the same dates as Europe.
>>

It would certainly make life a lot easier if the US and the EU were able to harmonise daylight saving. The interesting thing about the change within the EU is that all clocks change at the same moment across the EU, even though the EU spans three time zones.

<<It would certainly make life a lot easier if the US and the EU were able to harmonise daylight saving. The interesting thing about the change within the EU is that all clocks change at the same moment across the EU, even though the EU spans three time zones.>>

True, although Russia (and CIS countries)uses EU dates and US time of day (2 am local). That would be the better route for us. Assuming Canada followed, we'd have to cover all time zones from Atlantic to Hawaii with one algorithm.

From my own work point of view, it would be easier if everyone at least used the same weekend. (I am at present on contract at a vendor of world-wide financial information and when the clocks go back or go forward, we have to adjust many of our computer programs).

PROFESSIONAL INVESTOR: Don't Be an Investment Eurosceptic ; SLOWLY BUT SURELY, EUROPEAN GOVERNMENTS ARE MOVING IN A NEW DIRECTION
2005-07-30
Independent, The; London (UK)

While Americans continue to enjoy the benefits of a thriving economy, anaemic growth on the Continent has resulted in Germany's unemployment rate rocketing to its highest level since the early 1930s. Italy is in outright recession. Add to this the collapse of the European Union constitution and squabbles over the EU budget, and the picture is of a continent in both economic and political crisis.

However, behind the gloomy economic headlines lies a vibrant corporate culture in which thriving, world-class companies are improving productivity and focusing more than ever on creating value for their shareholders.

To improve competitiveness and boost profitability in a harsh, globalised world, many European companies are restructuring their operations and examining ways to grow more profitably. For example, it is estimated that 100 German engineering companies are currently discussing with members of the IG Metall union measures for improving productivity through new working practices.

This new, value-enhancing corporate environment is further illustrated by companies such as Germany's Deutsche Bank, which is benefiting from a global cost-cutting programme. This has included the fairly radical decision to sell its UK asset management business, prompting a rise of more than 10 per cent in the share price this month.

The success of restructuring is also clear at Sweden's Ericsson. It has been undergoing a restructuring plan that has brought down costs , with unprofitable divisions sold or shut down, and a new joint venture with Sony for mobile handsets. The result of this has been a 500 per cent rise in the share price from its low.

The higher profits produced by Europe's corporate restructuring are increasingly finding their way back to shareholders through higher dividends and share buybacks. A look at Europe's stock markets over the last year shows how this theme has helped to boost returns for UK investors. Over the 12 months to 30 June, European equities, as represented by the MSCI Europe (excluding UK Index), returned 19.1 per cent in sterling terms.

Europe's recent outperformance is not a short-term cyclical event, but clearly it is important to realise that Europe is not immune to global head winds such as a high oil price and geopolitical events. Even so, the corporate reform that lies behind Europe's recent outperformance will continue to support stock market returns.

It's not only companies that are changing. Slowly but surely, European governments are also moving in a new direction with the gradual implementation of business-friendly legislation across the continent. There have already been corporate tax reductions in Austria and Greece, while Germany and Portugal are discussing tax reforms.

What is equally as exciting for UK investors is that Europe offers a larger universe of companies from which to select stocks, which gives investors massive scope to find interesting, often overlooked, stocks that can deliver outstanding returns irrespective of market direction.

They include companies such as OPAP, the Greek gaming company, which trades on a very attractive dividend yield of more than 5 per cent. It is enjoying strong growth in sports betting in Greece, with new games still being introduced to an eager market.

Another attractive company is Aker Yards, a Norwegian shipbuilder, which remains attractively valued despite a rapid increase in its profits. Cruise companies had reduced their investment spending due to economic uncertainty a few years ago, but with demand for cruise holidays remaining strong, orders for new ships have recently picked up. Aker Yards is a major beneficiary.

Broad support for the European stock market comes from valuations, which still do not look stretched despite the recent sharp rise in share prices. In fact, prices today are no more expensive compared to earnings than they were in the summer of 2003.

In summary, Europe offers the UK investor the opportunity to invest in a region that has been undergoing positive change and yet whose valuation remains attractive. These factors typically lead to a healthy return.

Ajay Gambhir manages the JP Morgan Fleming Europe Dynamic (ex UK) Fund.

Sean O'Grady is away.

<<From my own work point of view, it would be easier if everyone at least used the same weekend.>>

You've got a long way to go - with some countries still at "half hour" times when everyone else is on the hour!
Good idea though.

<<<Both compulsory metrication and adoption of the single european currency are subject to European Union Directives or Treaties>>>

Indeed they are, but as Martin said, that is where the similarity ends.

The main difference of course is that metrication would be as much an issue in the UK now, if we had nothing to do with the EU. The fact that some of the legislation concerning metrication comes under EU directives is irrelevant. Why not focus your arguments on the issue of metrication itself and leave the EU argument out of it, because if it wasn't EU laws it would be UK laws.

You'd better have a word with Martin.

He reckons driver of vans, etc should not have a sign up in their cabin saying how tall their vehicle is in feet and inches.

'EU directive', apparently

It is not an EU directive - is is a UK-specific requirement and applies to UK-registered vehicles that are over 3m in hieght and foreign vehicles that aer over 4m in hieght.

Foreign vehicles are allowed the extra metre because pan-European agreements state that a minimum clearance of 4m can be expected on any European road (unless there are signs to the contrary). THus the host country can only make extra demands on vehicles that aer over 4m in hieght.

You mentioned another point about signs within the vehicle not adhering to rules and regs over supplementary indications like in supermarkets to do with th eEU.

I assume you think that those would be illegal after 2010 too?

<<Foreign vehicles are allowed the extra metre because pan-European agreements state that a minimum clearance of 4m can be expected on any European road (unless there are signs to the contrary). THus the host country can only make extra demands on vehicles that aer over 4m in hieght.
>>

But assuming there are signs to the contrary (and you seem to have plenty in the UK), wouldn't it be nice to know if your truck is going to fit? That law represents some bizarre reasoning.

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But assuming there are signs to the contrary (and you seem to have plenty in the UK), wouldn't it be nice to know if your truck is going to fit? That law represents some bizarre reasoning.
>>

I know that the law is a little biazarre, but under various intenrational agreements, the UK cannot force foreign vehicles to have such signs in their cabs if the vehicle meets certain certain agreed specfications (such as a height not exceeding 4m). Of course three is nothing stopping foreign drivers from voluntarily placing such a sign in their cabs, particualrly if they are not familiar with feet and inches.

Road safety would of course be improved if certain vandals desisted from painting out metric heights on these signs - I don no tthink that these vandals realise that if a fatality arose as a result of of foreign driver mis-understanding an Imperial measurement where the metric measurement had been painted out, the British ambassador to that driver's country might have some explaining to do if the driver concerned was charged.

martin - come down to earth mate!

Most signs are imperial only so after decades and decades of foreign drivers where is this long list of fatalities?

Just one instance will do.

Maybe ask Pip.

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Road safety would of course be improved if certain vandals desisted from painting out metric heights on these signs - I don no tthink that these vandals realise that if a fatality arose as a result of of foreign driver mis-understanding an Imperial measurement where the metric measurement had been painted out, the British ambassador to that driver's country might have some explaining to do if the driver concerned was charged.
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Martin, I don't understand your point. There is no EU directive or international treaty which requires Britain to put metric on such road signs. So Britain has done nothing wrong in your example.

Let me put it like this. Let's say that in the US, near the Mexican border, the majority of the population speaks better Spanish than English. So the city decides to install road signs in Spanish. The state insists that they be changed to English in compliance with state law. Then an accident occurs due to a driver that doesn't understand English well. Is the state to blame?