Warring Eurozone Could Spell Affordability for British Expatriates Wanting to Move Abroad

If you’re a currency market speculator you might currently be re-examining your sterling based options after news of a split in the Eurozone emerged, and threatened to undermine the value of the euro in the near future.  Over the past couple of years we have all watched, with a sinking heart, the decline in the pound’s fortunes in the face of a strong euro…therefore, anyone contemplating an escape abroad could now be rubbing their hands together with glee as the euro potentially teeters on the brink of a collapse!

News has emerged that Greece is being held up by strong eurozone members as the number one burden threatening to undermine the ongoing power of the euro as a leading global currency.  Greece has debt levels similar to those in the UK – and according to the German economic minister for example, it doesn’t have a government capable of positively managing its debt…which undermines all nations linked in to the single currency.

A war of words has broken out in Europe with the likes of Germany and France openly and vociferously criticising Greece, Portugal, Italy, Spain and even Ireland for undermining the euro with their sagging, flagging economies.  Even the Organisation for Economic Cooperation and Development has waded in by pointing out that the debt levels in some European nations is making the entire fiscal situation “extremely vulnerable.”  Well, they say that every cloud has a silver lining, and a warring eurozone could actually finally spell affordability for would-be British expatriates who want to move abroad and live within Europe…

Back in the good old days when we started Shelter Offshore, it was almost universally the case that the British pound was strong wherever you wanted to live abroad.  Moving overseas and having a more affluent, better lifestyle was almost assured if you had pounds in your pocket.  Then the truth about the worsening state of an economy built on quicksand gradually emerged, and the pound plunged ever deeper in despair in the face of currencies such as the dollar and then the euro. 

This brought us to the point where we are now, where those who have moved abroad on a British pension for example, are in some cases finding it very difficult to afford their day-to-day basic lifestyle simply because with a pound in your hand, you can buy so very little.  Those who have been watching the way things have gone and looking for their own way out of Britain and into a new life abroad, have seen their dreams moved ever further away as the reality of the situation has meant they will not be able to afford to live in Spain or Cyprus, or in France or Portugal – all popular European, eurozone countries with British expats.

However, finally perhaps there is a chink of light up ahead that means the pound could surge in strength as the euro is undermined by its poorest member states - and in real terms, perhaps the value of things priced in euros will fall against the purchasing power of the pound.  For the first time the mainstream media is reporting that which specialist economic related forums have been discussing openly for months – the fact that certain members of the eurozone may be kicked out on their failing bottoms and made to stand up for themselves.  The likes of France and Germany, which certainly have their own deeply ingrained economic issues, do not now want to have the added burden of responsibility for countries where the economic backbone is currently as flaccid and useless as something bendy that should be actually be firm and stiff!!  (Failed to find a good analogy, there, sorry readers!)

So, will Greece be back to peddling its wares in drachma, and will it revert to pesetas in Spain?  We have yet to see how this ever-intensifying argument pans out – but there is one thing for sure, no member of the eurozone wants to be responsible for another member’s failings.  Proving that the very fundamentals that built the platform that launched a single currency have long been forgotten about, walked over and basically rubbished!  If you’re strong you can be a eurozone player, the moment you show weakness you’re out because you will not be allowed to bring any other economy down with you!  Nice.

This could spell very positive news for all those Brits seeking an escape abroad, and who need to see the euro fall in value against the pound so that they can finally afford a decent lifestyle abroad once again.  So, on the face of it we’re all for the eurozone coming undone if it does indeed make it easier and cheaper for all those in the UK who want to leave!