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The Germans would have to be damn fools to go back to the costs and hassles of cross-currency activity.  If nothing else, their food prices would rise as there is no chance in hell - AFAIK - that the Danes and Poles are going to give-up the Euro, implying the German consumer would end-up paying for the costs of cross-currency transactions for both the importing and exporting companies.  

Politically, European stability, by that I mean "not shooting each other," stems from the Germany/French Post WW2 alliance.  Germany withdrawing from the Euro would certainly cause 'tensions' in that alliance and, to an extent I cannot comment on, put that alliance in doubt.  

Merkel & her band like to pretend they are oh so fiscally responsible but it's been demonstrated elsewhere in this diary that's a lot of malarkey.

All of which leads me to suspect Merkel & Co. are playing some kind of Game.  What Game and Who it is directed to/at are questions I defer to those who have greater insight.

by ATinNM on Thu Mar 18th, 2010 at 10:54:13 AM EST
[ Parent ]
Please cross-post as a comment to afew's FP story.

The brainless should not be in banking -- Willem Buiter
by Migeru (migeru at eurotrib dot com) on Thu Mar 18th, 2010 at 11:12:10 AM EST
[ Parent ]
that the Danes and Poles are going to give-up the Euro,

Was that a typo? Denmark is not in the Euro.

by gk (g k quattro due due sette "at" gmail.com) on Thu Mar 18th, 2010 at 11:15:05 AM EST
[ Parent ]
Danes and Poles are going to give-up the Euro

Brain Fart & bad way of putting it.

What I meant: these two nations would prefer to conduct business in the euro.

by ATinNM on Thu Mar 18th, 2010 at 11:15:38 AM EST
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