Impact on French Residents of Euro Collapse?

[Le Pop]

As a resident of France I keep hearing about the impending doom in Europe, but I am not too sure of what this is going to mean for us?

Should we be repatriating our sterling?

Are euros 'safe' in French banks?

Is the end nigh?

Opinions welcomed....

(Apologies if the mods think this should be in 'Finance')

[-Pete-]

Personally I'd move what you can to US dollars or GBP, people seem to think Australian Dollars too but I think that depends on Chinese growth. I think the Euro will either cease to exist or be devalued relative to these currencies in the next 9 months. Or buy 'safe' assets, perhaps physical gold (not gold certificates), antiques, non-hyped classic cars, art, basically whatever you can sell easily which won't depreciate too much over time. Just my opinion though...

[smifffymoto]

I'm still in sterling and will stay that way.I won't be buying art or classic cars as that won't buy me a loaf of bread if the st really hits the fan,gold is at a top price so that is out.

I have been building a cash reserve also for a rainy day.

[rdjohn]

I feel that defaulting countries and banks in Europe will become a problem, no matter where you live.

The fundamental cracks may be papered over in the next weeks, and months, but longer term something must give as complete fiscal union cannot be achieved in the short term and why would the German public collect the tab for everyone else's profligacy? Turkeys don’t vote for Christmas.

[magooagain]

I was wondering if a French Post Office account would be a safe place to put my 300 euros into ? An expat i was chatting to, is in the process of moving his French dosh out off Caisse d'Epargne Bank as he says its Spanish owned,and therefor a risk in his opinion,then moving it all into Banque Postal.

[Driller]

Well I work here and all my savings are in Euros in French banks so I bleedin' hope the Euro won't go tits up.

Saying that, it is still hard to imagine that the currency of two of the most financially stable countries in Europe could go that way.

[rdjohn]

Driller said:

Saying that, it is still hard to imagine that the currency of two of the most financially stable countries in Europe could go that way.

That is the problem; they both have the same currency as 5 financially unstable countries.

Most European Banks, as well as American and Asian, have lant heavily to these 5, as well as the other 27 member states, so the capacity of the world's financial system to be able to bail out the banks, like they did after the Lehmans collapse, is very limited.

The “Big bazooka” was supposed to eliminate this contagion problem, but it has not happened, and probably never will.

Mervin King was right to warn yesterday that we should all plan for the worst and pray it does not happen – the tsunami alarms are sounding so we should try to move to higher grounds, but when the water recedes, the world could be quite a different place.

However France will remain, still produce the best food, is fairly self-sufficient in most goods and services and has great infrastructure and so may prosper well in the aftermath.