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?
Lv 5
? asked in Business & FinanceInvesting · 9 years ago

effect of termination of the EU on the Australian economy?

the ASX is getting knocked around pretty hard at the moment because it's likely Greece will leave the EU.

I understand how international instability is bad for confidence, but it seems to me that in the long run a dissolution of the EU will be better for Australia. There will less pressure for European countries to trade with each other increasing Australian exports.

is this a naive position? are there stronger factors (then fear) that I'm not considering?

1 Answer

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  • John W
    Lv 7
    9 years ago
    Favorite Answer

    Yep, very naive. Greece's problem is with the Eurozone, with having defer it's currency sovereignty to the 17 nation Eurozone. What needs to be resolved is how individual countries can handle their debt with a unified currency without incurring inflation uniformly across all members of the Eurozone. It has nothing to do with Australian export. It's unlikely to lead to a dissolution of the EU and it won't lead to re-establishing trade barriers within European countries. The EU doesn't pressure European nations to trade with each other, trade barriers have simply been removed. You're connecting the dots from different sheets of paper.

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