Collapse of the Euro

Discussion in 'What's On Your Mind?' started by FetePerfection, Dec 19, 2011.

  1. FetePerfection

    FetePerfection Founding Member Coach

    Part of my job as a destination wedding planner is to anticipate problems and head them off or at least be prepared to deal whatever comes my way. I know there's been a lot of speculation about the collapse of the euro however I have about 100 guests coming from the US to Portugal in February for a wedding and if this occurred, what would it mean for our guests?

    There are a lot of very bright minds on TUG and while I don't understand all the implications of a collapse I do think it could be catastrophic for visitors relying on the euro.

    Advice, perspective etc greatly appreciated.
  2. Mike

    Mike Founding Member Coach

    For people from the U.S. it probably means that things in Portugal will be really cheap. If it looks like Portugal will go south, avoid prepaids unless they are dirt cheap & try to get things charged in local currencies whenever possible & the numbers work out. The locals will want your dollars, you want whatever's going to (expletive deleted).

    A year ago we were ensconced in a $31 a night hotel room in Athens (inc. brekkie for both of us, free internet in the lobby) during the Athens DO. Between the blizzards at MSP, EWR & FRA & all the strikes in Athens, it was hard getting there, getting around there, & getting out of there, but we paid almost nothing for the trip exc. airfare & one night at DTW (out of Hilton points :( ) on the way home.

    However, I suspect most of your clients won't share my cavalier attitude. :D
  3. FetePerfection

    FetePerfection Founding Member Coach

    Unfortunately my couple is having to prepay for a very expensive wedding at today's rates...I'm more worried about guests with worthless currency once we get there. Of course this will not happen overnight but it's been on my radar for many months now and I can anticipate questions even before our trip. Thanks for your perspective.
  4. lkkinetic

    lkkinetic Original Member

    <economist>You are right that the disintegration of the euro zone will happen slowly, and may not be really in motion in Portugal by February. The silver lining is that the dollar/euro rate has been more favorable to us recently because of the euro zone uncertainty, so it's expensive if they are locking in now,but probably would have been more expensive if the euro sovereign debt crisis were not in play. In this three-month window, Portugal *should* be relatively stable, and still using the euro as their currency. No guarantee, but I would be a lot more worried for a (big fat) Greek wedding than a Portugese one.</economist>
    FetePerfection likes this.
  5. FetePerfection

    FetePerfection Founding Member Coach

    But what I've noticed, coincidence(?) is VAT is going from 13% to 23% 1/1/2012 on all purchases. I have to believe they're tied together. Darn, I wish I paid more attention in my International Monetary Econ class.
  6. Leave no trace

    Leave no trace Original Member

    The standard rate of VAT in the UK increased from 17.5 per cent to 20 per cent on 4 January 2011.
    I doubt that it is a coincidence that other countries are moving their rates.
  7. nachtnebel

    nachtnebel Original Member

    You want to hold moneys in stronger currencies as long as you possibly can to take advantage of exchange rates. The USD is going to be stronger than the EURO, so will the Swiss Franc.
    There probably won't be a total collapse in the euro in your time span...those take a while to unwind. (If there was a full currency collapse, you won't be travelling to Portugal anyway).

    but, the phenomenon is unmistakable. What is happening in the PIIGS countries is that money is fleeing their banks, hundreds of billions of euros and is being moved to Germany, northern european banks, and to the central banks (but only very large depositors allowed in at central banks). Nearly 13 billion was withdrawn from Greek banks in the last two months. Weak countries are hemorrhaging the cash they need to stay solvent and lend.

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