4 ms·

Sorry, this is not true. Germany has had a lot of positive effects from the euro, as have the the people living in these countries. I remember when we had to e

by jagermo 11y ago

Sorry, this is not true. Germany has had a lot of positive effects from the euro, as have the the people living in these countries. I remember when we had to exchange money when going for a skiing trip to Austria (about 30 km from us). Now I can just grab some cash and pay in Germany, Austria, France, Italy, Spain, Greece etc. This is a huge win for me personally. This is as if someone would say: "The dollar is a disaster even for states that do everything right". Yes, you have spending, corruption etc. But that is true for every currency. It might be that the Euro changed a lot of things. Some for the worse, most of them for the better.

tallanvor 11y ago
Yes, the Euro has been great for Germany, but that's because they basically control the currency and have forced inflation to an absolute minimum, even though a reasonable amount of inflation would be significantly helpful for Greece, Italy, Spain, and quite a few other Eurozone countries. So yes, Germany is doing well, at the expense of the rest of the Eurozone.
- facepalm 11y ago
  How do they control the currency?
- jagermo 11y ago
  Do you think the rest of the Eurozone would be better of without the Euro? I don't want to start a flamewar, I'm just interested. I remember Italy and its Lira (something like a 1000 Lira equaled 1 Mark). Now the prices in Italy are kind of stable (we go there a few times every year). I am no expert but it seems that the Euro brought more stability. Plus, please don't forget that Germany enforced austerity measures since we got the East back. We have basically been used to them for so long and it kind of saved us during the last crisis. Its more of a lucky side effect I guess...
  - kilburn 11y ago
    I don't know about the rest of the eurozone, but as a Spaniard I must say that I do think we would have been better off without the euro. The euro gave us the gun to shoot ourselves in the foot, and we have done plenty of stupid things with it. A few examples: - Huge inflation. In a very short timespan (two years maybe?), we went from 1€ = 166pts to 1€ = 100pts in purchasing power value, without an equivalent salary raise. - Crazy housing bubble, with an ~100% rise in house prices between 2002 and 2008 (!!) - Over-indebtment to pay for stupid things: airports in the middle of nowhere, high-speed trains to unpopulated areas, etc. - Destruction of several industries (e.g.: a huge clothing industry) I could go on but I think this illustrates my point. Again, I'm not saying that this is anyone else's fault. This is what we spaniards deserve because that's what we chose to do with the possibilities the euro gave us. Nevertheless, it doesn't change the fact that we could not have done all these things without it. Edit: format.
    - verinus 11y ago
      and i think that spain is responsible for that and not the euro. if you had your own currency inflation would have increased the prices of all imported goods and thus diminishing the purchasing power...i can remember when italy hat its lira and every trip one got more ond more lira in exchange for our schilling (austria).
    - touristtam 11y ago
      For the inflation from day one, that is the same story for every country in the Euro zone that had a weaker currency than the Deutch Mark. The French baguette went from 1.20 French Francs (about 20 Euro cents give or take at the time) to 1 to 2 Euros depending on the Bakery. That's 500% inflation at best on something that is basically the bread and butter of French diet (pun intended). The Euro zone should have a unified taxation system to ensure a fair competition throughout the zone.
  - Oletros 11y ago
    > Do you think the rest of the Eurozone would be better of without the Euro? No, rest of the countries would be better without being at the expenses of what is good just for Germany
- adventured 11y ago
  It's not low inflation that is the primary benefit to Germany, it's that they have an artificially cheaper currency while remaining in the Euro, because of the weakness of all the other members. If Germany were outside the Euro, their currency would be vastly more expensive point to point than Spain, Portugal, Greece, Italy et al. That more expensive currency would drag down German exports.

by jagermo 11y ago

tallanvor 11y ago

Yes, the Euro has been great for Germany, but that's because they basically control the currency and have forced inflation to an absolute minimum, even though a reasonable amount of inflation would be significantly helpful for Greece, Italy, Spain, and quite a few other Eurozone countries. So yes, Germany is doing well, at the expense of the rest of the Eurozone.

facepalm 11y ago
How do they control the currency?
jagermo 11y ago
Do you think the rest of the Eurozone would be better of without the Euro? I don't want to start a flamewar, I'm just interested. I remember Italy and its Lira (something like a 1000 Lira equaled 1 Mark). Now the prices in Italy are kind of stable (we go there a few times every year). I am no expert but it seems that the Euro brought more stability. Plus, please don't forget that Germany enforced austerity measures since we got the East back. We have basically been used to them for so long and it kind of saved us during the last crisis. Its more of a lucky side effect I guess...
- kilburn 11y ago
  I don't know about the rest of the eurozone, but as a Spaniard I must say that I do think we would have been better off without the euro. The euro gave us the gun to shoot ourselves in the foot, and we have done plenty of stupid things with it. A few examples: - Huge inflation. In a very short timespan (two years maybe?), we went from 1€ = 166pts to 1€ = 100pts in purchasing power value, without an equivalent salary raise. - Crazy housing bubble, with an ~100% rise in house prices between 2002 and 2008 (!!) - Over-indebtment to pay for stupid things: airports in the middle of nowhere, high-speed trains to unpopulated areas, etc. - Destruction of several industries (e.g.: a huge clothing industry) I could go on but I think this illustrates my point. Again, I'm not saying that this is anyone else's fault. This is what we spaniards deserve because that's what we chose to do with the possibilities the euro gave us. Nevertheless, it doesn't change the fact that we could not have done all these things without it. Edit: format.
  - verinus 11y ago
    and i think that spain is responsible for that and not the euro. if you had your own currency inflation would have increased the prices of all imported goods and thus diminishing the purchasing power...i can remember when italy hat its lira and every trip one got more ond more lira in exchange for our schilling (austria).
  - touristtam 11y ago
    For the inflation from day one, that is the same story for every country in the Euro zone that had a weaker currency than the Deutch Mark. The French baguette went from 1.20 French Francs (about 20 Euro cents give or take at the time) to 1 to 2 Euros depending on the Bakery. That's 500% inflation at best on something that is basically the bread and butter of French diet (pun intended). The Euro zone should have a unified taxation system to ensure a fair competition throughout the zone.
- Oletros 11y ago
  > Do you think the rest of the Eurozone would be better of without the Euro? No, rest of the countries would be better without being at the expenses of what is good just for Germany
adventured 11y ago
It's not low inflation that is the primary benefit to Germany, it's that they have an artificially cheaper currency while remaining in the Euro, because of the weakness of all the other members. If Germany were outside the Euro, their currency would be vastly more expensive point to point than Spain, Portugal, Greece, Italy et al. That more expensive currency would drag down German exports.