A German exit from the euro could be relatively easy
The fundamental problem of the euro is widely seen as one of “herding cats” – the impossibility of coordinating complex policies among 17 discordant nations, each with different interests, traditions and ideas. This is not true. The dividing line in Europe is much simpler. On one side are France, Italy, Spain and every other significant country, backed by the U.S., Britain, the IMF, the European Commission and the leadership of the European Central Bank, proposing serious and complex technical solutions based on genuine fiscal federation, which means the sharing of national debts. On the other side is Germany, occasionally supported by Finland, Austria and Slovakia, always saying Nein!
Every new veto threat from Angela Merkel increases Germany’s embarrassing isolation, as Joschka Fischer, its former foreign minister, recently warned: “Germany destroyed itself – and the European order – twice in the 20th century. It would be tragic and ironic if a restored Germany … brought about the ruin of the European order a third time.” But if Germany’s role as spoiler is increasingly recognized, why don’t the other countries do what this column suggested last week: Tell Merkel to put up or shut up – either abide by majority decisions or leave the euro?
The standard answer is that Germany is the “paymaster” of Europe; so without Germany the euro zone would be “bankrupt”. Such metaphors are a lazy substitute for clear thinking. To see why, compare the consequences of Germany leaving with the Greek exit, which was described as “manageable” by European officials only a few weeks ago. German departure would be less disruptive than Grexit for three reasons.
http://blogs.reuters.com/anatole-kaletsky/2012/06/27/a-german-exit-from-the-euro-could-be-relatively-easy/
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We don't often have the chance to get this kind of view on the Eurozone and most Americans don't really care that much. It's like Europe just doesn't exist except as a punching bag for opportunistic right wing U.S. politicians, who use Americans' ignorance and gullibility to talk trash.
I very much enjoy your posts from abroad and thank you for providing them!
will be the outcome of their next elections September 2013. It possible that the German people will turn against Germany acting to support other nations at the expense of German taxpayers who went through their owns periods of austerity to get to where they are now.
The whole picture could change.
