Germany could forsake the Euro

[Skybird]

http://www.guardian.co.uk/world/2010/dec/03/angela-merkel-germany-abandon-euro

Interesting that to my knowledge none of the German major internet news outlets I skim every day, or see on TV, has reported this story.

For the German economy, that scenario in the short term would be an end with terror. Which maybe still is better than in the medium and long term a terror without end. But a catastrophic mistake - the early introduction of the Euro - does not become less a mistake just because you waste time with waiting and waitrin g, and then waiting longer. That damn thing came decades too early, in an economic context that was anything but supportive for the concept. It was a dedicated ignoring of unwanted realities.

[Herr-Berbunch]

Potentially it could have been great, but in letting so many *new* EU countries join in it is surely doomed - the cost of living varies so much from state-to-state! :nope:

Glad we stayed out of it, we can get into enough troubles of our own without being dragged down by this. :yep:

[XabbaRus]

Euro = Fail

A Franco/German desire to control Europe and prove to the world that we can all get along.

The EU was fine when it was small and as a trade bloc only.

Harmonised EU standards for goods, great idea, cuts down costs and barriers but this whole idea with more laws to do this and that.

Given that ironically the only country that met % debt of GDP to enter the euro was the UK the whole thing is bound to fail. They broke their own rules to force it through.

[Betonov]

http://static.guim.co.uk/sys-images/Guardian/Pix/pixies/2010/12/3/1291398391471/Angela-Merkel-006.jpg

The person between Sarkozy and Merkel is boris pahor, our prime minister (and prime idiot). Explains Frau Merkels face :D we grinn like that every day

back on topic:
I'd miss the euro, if germany abandons it it will fal like dominos. Being a pro EU it makes me cry. IF cool heads prevail we will come out of this alive and well, but with a hell a lot more strict rules when it comes to economic practices ala. greece and ireland. But cool heads are a luxury today and almost none of them are in politics. And as much as it pains me I agree with Frau Merkel, a sick dog is better shot than being left to suffer. Just too bad the anti EU's will have a field day with this, so that any attempt to rebuild the EU will take generations, before this disaster will finally be forgoten. Cursed to remain a seperated noncooperative bunch of states, jumping like our american/russian/chineese masters tell us to

[Respenus]

Might I just mention one little titbit?

http://www.spiegel.de/international/europe/0,1518,731798,00.html

Seems like a very good article and as you have said Skybird, it would be a short term terror. The problem with the financial markets and sovereign economy would be that this would turn into a long term terror for everyone, not just Europe. The article I posted speaks of dangers for Germany, but I would like to attract attention to the final part, about Europe loosing what little comparative advantage it still has. It wouldn't just be political and economic suicide, it would be a strategic one. As much as we might hate what has happened, one thing is certain. Drinking the foul medicine is better than killing the patient.

[Skybird]

As I have learned some weeks ago, the early introduction of the Euro was Frtance' price to agree to German reunification - a too high price. If they cannot prevent a big Germany, so thought the French, then at least they can weaken it by forcing it into a tight gear.

Also, there is growing concern that France may become a failing candidate, too - their fiances also are not the best. And two rating agencies have threatened last week to downgrade Germany's credit reputation due to Germany bearing more financial bailouts for other nations than it can sustain itself. That's a first for Germany.

It simply is too much.

So much for "franco-german currency to dominate europe". The Euro and its premature timetable to me is a fail from beginning on. So is the excessively enlarged EU and its new agenmda that I also hate for ideological reasons. I think it is a ego-trip of politicians only, and a money-maker-trick for those holding the many offices and seats.

However, the interesting point is that in Germany no media seems to have reported that Merkel threatened to leave the Euro. Officially, that is an argument non grata over here. Only independent thinkers and economists dare to speak out about this option.

I am pro EU myself - but not in the form and super-state formula and national identity-denial the new EU policy of the past 15-20 years is aiming for, and not so massively at the cost of the few. If a system needs constant subsidies and cannot maintain itself reliably, then this to me is a clear signal that the system does not work and is not competitive.