View Single Post
Old 04-30-2011, 05:03 AM   #19
Currency Trader
Join Date: Sep 2009
Posts: 172
Currency Trader is on a distinguished road

Phoenix said:

Im not sure if the greek example is a good one...what greek industry is there, apart from tourism, are there any other significant greek industries that aren't already heavily subsidised by the greek government to keep afloat...?

Which industries do you have in-mind that is heavily subsidized?
Not sure if their transport, shipping, chemicals, metal products or mining businesses are heavily subsidized.


Phoenix said:

As for your other 3 examples, the Bulgaria's, Romania's and Slovenia's of the 'Union', I don't believe that they've been in the club for long enough to feel the full power of the Union in undermining local industry and living standards...
Slovenia has been in the union since 2004 while Bulgaria and Romania since 2007 – The power of the union to “undermine” locals industry and living standards, as you refer to, may vary depending on how the country handles its integration and how prepared they have been. Some countries may experience immediate shocks to their system, while others are gradually adapting EU standards of competitiveness. Slovenia is said to be one of these countries that have made a smooth transition.

Countries in the union whose industries are being undermined from sources inside the union, are likely less sufficient and competitive. As each of these countries become more open it puts more pressure on domestic enterprises to cope with competition. The EU union may not be any different from the issue of “globalized economy” that developed during the 90’s. Inefficient countries will have to rethink their economies and state structures.

Currency Trader is offline   Reply With Quote