Quote:
Originally Posted by EldrickOnIce
Talked to an econ prof the other day about this mess.
He has always maintained the entire Eurozone, in it's format, has to fail.
He said Canada is a working version of the EU, so in brief:
Common currency, different economies (provinces).
Provincial governments can run deficits, control their own taxation and spending.
So similar in that respect.
What makes Canada work is the amount of tax dollars that goes to the federal government, and then gets distributed through equalization payments to the provinces. The EU as a central 'governing' agency has neither the resources nor the mandate to operate in this way.
So basically Alberta is Germany and Quebec is Greece, but for equalization.
This explanation made really good sense to me.
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And Ottawa is Brussels except Brussels has no power or money to distribute. The power and money actually lies in Germany.