# GBP - Euro Parity in 2012



## MacManiac (Jan 25, 2012)

Just been watching the BBC News and was, as ever, being thoroughly depressed by the economic outlook. There was mention of the fact that the UK was in danger of sinking into a second recession/depression this year, and their economic correspondent suggested that if that happened there was a distinct possibility of the rate between the GBP and the Euro reaching parity. The thought of £1.00 = €1.00 makes for uncomfortable reading.

I just put that figure into my "Moving to Cyprus in 2013" spreadsheet and the effect it has on my disposable income is quite dramatic.

I know there have been a lot of threads regarding the cost of living in Cyprus but I wondered what other people think (especially those whose pensions/incomes will come from the UK)?

Martin


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## Kalimera (Oct 19, 2011)

Hi Martin

At the time of writing the rate is 1.19 Euro to the £ and I think it seems highley unlikely it will drop to that level. Granted, I am no expert or politician but do these so called 'experts' really know what they are talking about and can they predic the future?

The country is still in recession in my eyes and the future of the UK is quite bleak. 

Sorry I can't answer your questions about cost of living.

Do you own your own property in Cyprus??

Regards
Simon


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## MacManiac (Jan 25, 2012)

Hi Simon,

No. I am planning a move in 2013, hence the spreadsheet. The BBC seems to have an agenda to make the news as negative as possible at the moment and it is so depressing. We are researching carefully, before coming out for a few weeks in October/November to check out areas we think we would like to live in. We would rent for the first twelve months. I was stationed on Cyprus for three years in the 70s but my wife has only been here there on holiday.

Hence the caution.

Martin


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## Kalimera (Oct 19, 2011)

I think we are all trying to escape the bedlam in the UK and look for a better place to live.

It's a tricky one. Many people are finding things hard in Cyprus, and those on pensions are also finding it challenging and if the £ and Euro do go level then god help them. 

What I do understand is why is the Euro in crisis yet it holds a strong value against the stirling? When we bought our home in Pissouri the rate was 1.50 to the £. Our mortgage gas gone up significantly!

I know one or two people who have moved back to the UK but more who are happy there and have no intention of coming back!!!


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## Kalimera (Oct 19, 2011)

Apologies for my spelling I am using the forum app on my mobile.


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## MacManiac (Jan 25, 2012)

Our pensions are more than enough for us to live comfortably in Cyprus but it would be awful for all British Expats if the pound collapsed and there was parity between it and the euro. Although the UK economy is not doing well, relatively speaking, the money markets will only support the pound when there are signs of growth and recovery, and of that there is no sign. The fabled "green shoots of recovery" have withered and may have died.

We'll keep our eye on the UK economy with more than usual interest in the time before we move to Cyprus.

Martin


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## MacManiac (Jan 25, 2012)

Coincidentally Pissouri is one of the places near the top of our list to visit and test the waters.

Martin


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## Kalimera (Oct 19, 2011)

Pissouri is just fab

Veronica is a good person to ask for advice/questions on here.


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## RonJeremy (Sep 17, 2009)

The Euro zone is obviously facing some serious financial difficulties however central banks has the choice between inflation or deflation and UK is infamous at being extremely in favor of inflation (as can be seen in 2008), which is why I believe that a £1=1€ is indeed somewhat of a possibility.


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## MacManiac (Jan 25, 2012)

I really hope for the sake of all expat. UK citizens living in Cyprus that this does not happen. We hope to join you all in 2013 and could weather that exchange rate but suspect that many would find it to be the last straw.

Martin


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## Veronica (Apr 5, 2008)

I remember a similar forecast for parity about 2 years ago and it never happened
If it ever does happen there will be some who really couldn't afford to come but took the chance anyway who will find it very hard and probably end up going back to the UK.
However I really can't see that it will happen. (Fingers crossed)


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## MacManiac (Jan 25, 2012)

i am in agreement with you there. With the Germans really wanting the value of the Euro to fall (given that exports account for 50% of their GDP, I think I read somewhere recently) against the US Dollar and the Pound, that makes this forecast of parity unlikely. I would hate to think of people having to return to the UK because of the currency markets.

Our move to Cyprus in 2013, all other things being equal, does make keeping an eye on economic factors in Europe something more than a hobby.

Martin


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## MBarry27 (Feb 1, 2012)

GBP/EUR will trade at 1.30 come year end!!


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## jojo (Sep 20, 2007)

MBarry27 said:


> GBP/EUR will trade at 1.30 come year end!!


You heard it here first folks!!!!! 

Jo xxx


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