Eurozone

[davey]

I freely admit I don't understand what's going on in the eurozone with the economic crisis. I know Greece, Italy, Ireland, Portugal and to some extent Spain are in trouble financially.

Please can someone IN LAYMAN'S TERMS explain the situation to me. What would / will happen if the Euro "Fails"

I'd also like to know how the crisis may affect the following, the value of my property in Spain, the Spanish mortgage and repayments. And finally the cost of living in Spain?

Thanks

[MustaphaP]

I freely admit I don't understand what's going on in the eurozone with the economic crisis. I know Greece, Italy, Ireland, Portugal and to some extent Spain are in trouble financially.

Please can someone IN LAYMAN'S TERMS explain the situation to me. What would / will happen if the Euro "Fails"

I'd also like to know how the crisis may affect the following, the value of my property in Spain, the Spanish mortgage and repayments. And finally the cost of living in Spain?

Thanks

You and me both ! - ALSO, what happens re: UK pensioners getting their pensions paid into a Spanish Bank account ?

[OldTimer]

My understanding is that if Spain decides to / is pushed out of the euro and reverts back to peseta's, that the peseta will undergo a devaluation, which is something that can't happen within the exchange mechanism. Because the peseta will be devalued it would probably, lose value against Sterling. Therefore your pound would in effect buy more peseta's then it currently does with euro. This is basically what has been happening with Sterling/Euro in the UK over the last 2-3 years, devaluing its currency against the world leading ones by printing money, basically increasing what is in circulation.

I know there is a lot more to it than that, but that it my simplified understanding of the situation.

[AJC]

You and me both ! - ALSO, what happens re: UK pensioners getting their pensions paid into a Spanish Bank account ?

There is little need for that to change. Pensioners still receive their benefits paid directly into their bank accounts in other non-Euro currencies without any problems.