Posted on 06/04/2005 10:17:12 AM PDT by knighthawk
Rome: Italy should consider dumping Europe’s single currency, the euro, and reintroducing the lira as a means of helping the country’s struggling economy, Welfare Minister Roberto Maroni said yesterday.
In an interview with the Rome-based daily La Repubblica, Maroni said his Northern League party would collect signatures aimed at calling a referendum on the matter. “I have no nostalgia for the lira. But our citizens are crying out for help,” Maroni said. “Over the past three years ... the euro has proved to be inadequate in the face of the slowdown of economic growth, the loss of competitiveness and the crisis of employment”.
Maroni said national governments should be given back the exchange rate leverage, which would allow them to devaluate in the face of growing competition from countries like China.
The minister, whose party is an outspoken critic of the European Union, described the euro as “the legitimate son of a European model that is failing”.
Discontent with the euro has grown in Italy amid perceptions that it has raised consumer prices and driven the economy into recession due to strong competition from China, particularly in the traditionally strong textile industry.
The minister called for a referendum to see if Italians want to temporarily bring back the lira.
“I say not to discard this hypothesis because it isn’t at all far-fetched,” Maroni said.
“Wouldn’t it be better perhaps to return, temporarily, at least to a system of double circulation” of the euro and the lira, Maroni said.
When the euro came into circulation, many merchants steeply raised their prices, by dropping off the zeros from the old prices in lira. The changeover rate from lira to euro was a little under 2,000 lire for every euro. With the adoption of the euro, Italian consumers found themselves paying much more for goods and services ranging from fruit and vegetables to plumbing repairs and dining out.
With elections due next spring and the nation in recession, Italy’s politicians are becoming increasingly sensitive to public anger over economic difficulties and likely to be worried about any anti-European backlash in the wake of “no” votes from France and the Netherlands over the new European Union constitution.
Maroni is a leader of the Northern League, a party whose base is largely built on owners of small and medium-sized businesses in northern Italy. The euro-skeptic party is one of Premier Silvio Berlusconi’s main coalition partners.
“I have no nostalgia for the lira. But from the citizens a cry for help is reaching our ears,” Maroni said. ´The euro is the legitimate child of the European model which, with worry, we’re watching fail,” he was quoted as saying.
BRUSSELS: The European Union’s executive Comission said yesterday that the euro is “forever,” dismissing a call from an Italian minister for reintroduction of the lira.
“Like the coins and the banknotes, the euro is forever”, said commission spokeswoman Amelia Torres, commenting a proposal on the appearance of future euro coins. She was speaking after the euro fell strongly against the dollar yesterday following Maroni’s remarks, which she dismissed as a “flight of fancy”.
In Madrid, EU monetary affairs commissioner Joaquin Almunia also rallied to the defence of the euro saying yesterday: “I think that no one will be able to call into question an achievement that cost us so much to reach and which has brough us so many advantages.”
If people want on or off this list, please let me know.
"forever...." does anyone know if it's possible to smell "schadenfreude"...
I was in Italy under the lire and then the Euro. I vote Euro. The only thing wrong with the lire was that the decimal point was four spaces too far to the right.
Looks like Italy is getting ready to take a dump and "euronate."
The French want to continue their "European Social" culture - in essence, they rebelled because they want the rest of Europe to pay for their lifestyle. The NON on the Constitution was IMHO their method of getting the rest of EU to kiss their axx to retify Inessence, they want to live off the rest of the EU countries.
The Italians, IMHO, resented the attention given to the French and want a little axx kissing of their own. The Dutch, who contribute more per capita than anyone to the EU, got tired of paying the bills. Developing .....
The problem is that is a country has a weak economy, the currency should reflect this weakness. It is a weak currency that makes the nations exports more valuable, and encourages citizens from stronger currencies to spend their money where they can get more value for their money. Under the lira, Italian products and services would be more attractive to outsiders.
A unified currency will always be a curse to weaker economic nations because recovery depends on encouraging spending within the nation.
Scratch valuable and replace it with attractive.
don't care much, I'm selfish and whatever makes my life simpler.
The Euro's value (in Italy) in the first week was $.86, and the lira was still operative. Every year since, the Euro's value has increased--early this year, it was approaching $1.40. That dents tourism--Italy's #1 business.
That would raise my ire if it happened here.
With elections due next spring and the nation in recession, Italy’s politicians are becoming increasingly sensitive to public anger over economic difficulties ...
It takes an election to wake them up?
EU monetary affairs commissioner Joaquin Almunia also rallied to the defence of the euro saying yesterday: “I think that no one will be able to call into question an achievement that cost us so much to reach and which has brough us so many advantages.”
Joaquin's not paying too much attention as he drives his tank over the masses.
you don't know my interest. I said I was selfish. When I go to Europe, I wind up in 3-5 countires per trip. I have many friends there and spend little on hotel. We shop in the local markets and eat at their homes or small cafes. It is more convenient for me to have one currency then to suffer some devaluation. Didn't notice it last spring.
No, I understand. I'm just as selfish--certainly like the convenience, too; but we rarely leave Italy, and I've seen what the Euro has done to the smaller towns (the best ones far as I'm concerned). And--where Italy's concerned--it's gotten worse every year for tourist and host (this year worst of all).
My family is in a small town in Sicily. The town seems bad off no matter what happens to the currency.
I've heard. They're working on more tourism now, too. And by rights they should get it; so much is virtually undiscovered and magnificent. Of course tourism pretty much kills that aspect. Vicious circle. I'm told that Sicily has two other tourist-promoting problems: their Italian's tougher for us to understand (and our Italian's impossible for them to understand); and their schools are less demanding about forcing English as one of several second languages.
That would raise my ire if it happened here
We have family and friends in Italy. They are not happy with the euro. Prices are out of control.
Parts of the island are beautiful, but there's a lot of dusty little towns. People do not seem open to outsiders. We were with my two cousins who knew everyone in town, but I can't see a tourist industry blooming there. Perhaps more coastal resorts especially in the north east.
Very much like southeastern Italy's dusty towns (south of Bari)--the southwest coast seems much wealthier. And the northeast cities in Sicily are most easily reached from the mainland. Let me ask you, though--did you feel SAFE in the towns you visited? Part of that standoffishness with strangers heartening. They still protect their own; and although there's supposed to be graft & conspiracy (a la Godfather) & disdain of Rome, other "crime" is minimal, and they use far fewer "outsiders" (like Muslims!) than the boot in their arbors & orchards.
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