> So first of all what crisis are we talking about here, a fiscal crisis
France is in the red and bailing it out would put require all members to pool money (unlikely) or print money (causing inflation).
If you think that printing money is free win consider that non-EU countries aren't stupid, they will demand more EUR for their goods. Which might require another round of money printing.
> And can you spell out the exact connection to
Yeah, it's called Euro Zone. Look this wasn't some deep thought. Whatever one country in EZ does impacts others through the shared currency. If say Italy and France need to be bailed out this causes EUR to depreciate (hurting importers), and if say Germany and Poland are doing extremely good it causes EUR to appreciate (hurting exporters).
> We don't have a Gambia here
Sure we do. Gambia is a real country and it could peg their currency. This happens often during crises of currency trust.
However, pegging Gambia's currency to USD only works in short terms. If their policies aren't aligned and there is no money redistributions, Gambia will sooner or later have to float their currency.
This is nutshell what France was doing (on a less apparent scale). It was pegging its weaker currency to EUR (because it's a large importer). An importer loves strong currency, but importing too much devalues your currency, which would prevent overspending because the more you import the less profitable it is to import. A similar thing happens to exporters but their currency appreciates.
> Can you without looking it up say which EU member produces the most cars per capita?
No idea, my original guess would be Poland or some poorer country. Having checked it's Germany. I don't quite see the convergence this is supposed to show.
> to freely (as freely as possible) doing business across internal EU borders, in this case
That's a nice to have, but not necessary. I count prosperity and life satisfaction more important than free trade.
France is in the red and bailing it out would put require all members to pool money (unlikely) or print money (causing inflation).
If you think that printing money is free win consider that non-EU countries aren't stupid, they will demand more EUR for their goods. Which might require another round of money printing.
> And can you spell out the exact connection to
Yeah, it's called Euro Zone. Look this wasn't some deep thought. Whatever one country in EZ does impacts others through the shared currency. If say Italy and France need to be bailed out this causes EUR to depreciate (hurting importers), and if say Germany and Poland are doing extremely good it causes EUR to appreciate (hurting exporters).
> We don't have a Gambia here
Sure we do. Gambia is a real country and it could peg their currency. This happens often during crises of currency trust.
However, pegging Gambia's currency to USD only works in short terms. If their policies aren't aligned and there is no money redistributions, Gambia will sooner or later have to float their currency.
This is nutshell what France was doing (on a less apparent scale). It was pegging its weaker currency to EUR (because it's a large importer). An importer loves strong currency, but importing too much devalues your currency, which would prevent overspending because the more you import the less profitable it is to import. A similar thing happens to exporters but their currency appreciates.
> Can you without looking it up say which EU member produces the most cars per capita?
No idea, my original guess would be Poland or some poorer country. Having checked it's Germany. I don't quite see the convergence this is supposed to show.
> to freely (as freely as possible) doing business across internal EU borders, in this case
That's a nice to have, but not necessary. I count prosperity and life satisfaction more important than free trade.