The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
And of course the largest trade partner of Germany is still France. German exports in 2012: 1.France
German exports in 2012:
1.France
Imagine a core Eurozone with Germany and France alone, and Germany retaining its 6% current account surplus. If their common currency continued to float freely and the core Eurozone had a neutral current account balance, France would have an 8% current account deficit.
So either Germany gives up its current account surplus or the rest of the world allows the core Eurozone to devalue its currency so that it can run a 3% current account surplus. Or Germany accepts fiscal transfers to France comparable to the size of the current account balances.
As none of the three possibilities are politically plausible, there cannot be a core Eurozone consisting of Germany and France. In fact, there cannot be a Eurozone consisting of Germany and anyone else (as the successive failures of Europe's attempts to fix exchange rates without fiscal transfers over 40 years demonstrate). I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by gmoke - Jun 22
by gmoke - Jun 19
by gmoke - Jun 6
by Oui - Jun 22
by Oui - Jun 2216 comments
by Oui - Jun 21
by Oui - Jun 208 comments
by Oui - Jun 209 comments
by Oui - Jun 19
by Oui - Jun 192 comments
by Oui - Jun 187 comments
by Oui - Jun 181 comment
by Oui - Jun 1710 comments
by Oui - Jun 166 comments
by Oui - Jun 16
by Oui - Jun 162 comments
by Oui - Jun 1515 comments
by Oui - Jun 141 comment
by Oui - Jun 14