Monday, August 20, 2012

If a member of the Euro trades mostly outside the Eurozone ...


1) If a member of the Euro (whichever these members are) trades mostly outside the Eurozone, does it make sense for it to be in it?

2) If a member of the EU and its single market (whichever these are) trades nostly outside the EU, does it make sense for it to be in the EU?

3) Membership of the EU single (or even common EEC) market "means" a state has focus inside the EU mkt (short though of a Fortress EU mentality)

4) The rationale of the single/internet EU market of 500,000,000 is for it to be (oh well) internal/single. And for members to trade mostly inside.

5) Global mega exporter Germany sells 40% in the Eurozone and 60% inside the Single EU Market. Makes sense!

6) If most EU members trade(d) mostly outside the EU, then what's the point a) of the EU Single Market? b) of the EU?

7) But then again quite a few of the 27 joined the EU/EEC primarily for security rather than economic reasons.


1 comment:

Dave said...

When a non-EU state trades in the single market it has to fulfil the criteria laid down by EU members in doing so. EU rules and regulations therefore affect that country's ability to trade and it makes economic sense for them to be able to influence these rules if possible. That is one of the most important benefits of EU membership - it allows you to influence the rules that govern trade within the single market.

Even if it's a comparatively small percentage of your total trade it still makes sense that states should maximise their ability to influence those rules and regulations. The option of joining China, or becoming another state in the United States, is not available to European countries, even if they happened to do more trade with these countries than they do with the EU. The option of joining the EU however, is potentially available.