2 ms·
In Germany's defense, they never asked for the Euro, it was more or less forced on them as the price for France not pitching a fit about German reunification.
by rossdavidh 7y ago
In Germany's defense, they never asked for the Euro, it was more or less forced on them as the price for France not pitching a fit about German reunification. Essentially, the rest of the Eurozone is running on Deutschmarks, and calling it the "Euro" instead of the "Deutschmark" is just a face-saving measure. Germany, unlike most other countries in the Eurozone, could announce tomorrow that they were leaving the Euro, and there would be no run on the banks.
There might, though, be a run TO the banks, to deposit your Euros in time to get them magically changed into Deutschmarks.
So, Germany acts like they run the Eurozone, because the Euro runs on Germany's economic status.
Now, why Italy, Greece, etc. continue to remain inside a currency zone that is not appropriately valued for them, is a different question. I would not be surprised that, if the League ever gets control of the Italian government, they will withdraw. But until then, the Mediterranean countries are handicapping their own economic competitiveness voluntarily, it's not as if it's Germany's fault, since it wasn't Germany's idea.
- dx034 7y agoThe Euro is quite popular in Germany and has gained popularity in recent years. It wasn't very popular at the start but this has definitely changed. And if Germany got rid of the Euro this would certainly cause bank runs since Germans would be afraid that the Euro quickly devalues against the new currency.
- imtringued 7y agoThe problem in italy is deeper than just the euro. The euro is just one of many factors but it has a higher visibility because it is beyond the control of a single country. Italy can only blame itself for all the other problems. This also applies to other countries in the eurozone.