Is the Euro in risk of colapsing? What actions will be needed to keep the current system going?

[InsanePotatoes]

I thought I'd share this with our members from Europe, mainly because this is affect them the most.

I'll start with this video.
http://www.youtube.com/watch?v=Fyq7WRr_GPg&feature=player_embedded#
Nigel Farage speaking at the European Parliament back on Nov 24th.
Farage argues that the Euro and European Union is going to collapse (due to the unsustainable debt held by countries like Ireland and Spain), and the attempted bailouts will destroy the economies of Europe and destroy democracy in the process.
They're beginning to understand that the game is up and yet in their desperation to preserve their dream, they want to remove any remaining traces of democracy from the system. And it's pretty clear that none of you have learned anything.
You are very very dangerous people, indeed. Your obsession with creating this Euro state means that you're happy to destroy democracy. You appear to be happy for millions and millions of people to be unemployed and to be poor. Untold millions must suffer so that your Euro dream can continue.

Next we have this graph showing the web of European debt:
http://graphics8.nytimes.com/images/2010/05/02/weekinreview/02marsh-image/02marsh-image-custom1-v3.gif

Both of these pieces of information help paint a gloomy picture for the Eurozone.
My question is:
Will the Euro debt crisis lead to the dissolution of the Euro currency and the European Union in general?
What price will have to be paid to keep the current system going?
At this point, is it worth trying to keep the system going, or should it be dismantled (by elections and the market)?

[TheGuySim]

People are saying there is definately a risk that it might happen, and our idiot of a Taoiseach, Brain Cowen, and the rest of the stupid politicians here in Ireland are culprits.

[whiterider]

I strongly suggest not paying too much attention to Nigel Farage. ;)

I think the Euro was a bad idea to begin with - as is seen now, the single currency removes any possibility of using several common measures to stabilise a weak or failing economy: a single currency will be beneficial only if it operates within a single economy. Of course, it may be argued that some (certainly not all) proponents of the Euro want a single economy, as seen by the support for the original draft of the Lisbon Treaty, which looked rather like the institution of the EU as a federal government.

However, despite this, I'm not convinced that the Euro will be dissolved, and I am utterly convinced that the EU will not be. The EU can operate well independently of its member states' economies: the Eurozone can't, however no-one wants to leave the Euro. Economically weak countries don't want to leave the Euro because it is providing them with a measure of stability - off the back of strong economies such as Germany, struggling countries such as Ireland and Greece are assured that their currencies will not tank. Stronger economies don't want to leave the Euro as there's nothing in it for them, except for seriously damaged international relations, which would no doubt impact trade thereby resulting in the weakening of their economies.

What I believe will happen is that we will see, well, more Spains. There will be serious economic inequality within the Eurozone, with weak countries struggling for many decades to recover, and strong countries pretty much sitting pretty. There will also no doubt be lots of protests, lots of emigration, and lots of political strife: we can only hope that no country in fact goes bankrupt.

[pinketamine]

I don't get why Euro will destroy democracy. I don't like the Euro, but I don't find the relation between the euro and the destruction of democracy... why is this man saying this? Which are the supposed reasons for it?

[InsanePotatoes]

The area where propping up the Euro hurts the democratic process was with cases (as Farage mentioned) where the European Parliament (or one of those groups in the EU) demanded that the Irish government hold off the general elections until after the budget was passed.
I understand that having a general election during the budget making process can cause political turbulence (like incumbents voting on politically popular items to increase chances of their reelection) or confusion (where some members get voted out, so then the budget gets delayed and some details are changed by the new members). At least that's what would happen here in the US. Haha.
But in the long run, it might be better to keep the democratic process going, at least as virtue, over short-term political and financial decision making. Otherwise you're eroding the right to vote in favor of "political safety".

I dunno. But the Euro is a fiat currency, and all fiat currencies are doomed to fail sooner or later. Of course the failure of fiat currency is proceeded by grinding inflation, which virtually robs people of their money and savings.
It really is "taxation without representation". And especially so if you're one of those who believe that all forms of taxation are theft.

[whiterider]

Removal of sovereignty is a problem with the EU though - not the Eurozone. Farage talks about the Euro threatening democracy because it's highly unpopular in the UK, so whenever a government considers our joining the Eurozone he goes "The people don't want it! Undemocratic!" (quite right). Both the Eurozone and the EU may be seen as undemocratic in specific situations - but it's the EU which directly controls governments, not the Euro.

[pinketamine]

That is what I meant, the EU can be undemocratic sometimes... but the Euro is just a currency, how can a currency be undemocratic?
I don't like the EU much, to be honest. Bigger countries (Germany, France and the UK mainly) try to "impose" their views to others, and that is not right.