Martinelli euro currency sortie condemned
President Martinelli has built a reputation for his off the cuff announcements or trial balloons while out of the country. His latest sortie has raised a storm of criticism.
While in Berlin on Tuesday October 4, meeting with German Chancellor Angela Merkal he talked of introducing the euro alongside the dollaras an official currency.
Vice President, Juan Carlos Varela, said that the adoption of a second currency in Panama is not related to thinking in the best interests of the country and the suggestion is typical of Martinelli's impulsive style.
Economist Juan Jované described the proposal as "nonsense." He said the change would have a serious impact on the payment of wages, the collection of taxes and budgeting, among other problems.
"If one is paid in euros, and the currency drops in value, it would be a pay decrease," the economist said.
He said there would be no problem if the two currencies had fixed values, but since they don't, the proposal wouldn't work.
"People would always have to have their calculators with them," Jované said.
Economist Adolfo Quintero said that the proposal would undo Panama's work over the last 15 years to develop as a financial center.
He said that the uncertainty surrounding Europe means it is not a good time to consider adopting the euro, saying the dollar is much more stable.
He said that European investors look for stability in their investments abroad, and Martinelli´s statements undermine that stability.