Friday, May 3, 2013

Bibow on the Euro Crisis

Jörg Bibow analyzes the different positions of France and Germany on the common currency:

The German model has plunged the European Union into existential crisis. A model the workability of which depends on others behaving differently from Germany cannot be made to work by forcing everyone to behave just like Germany. Germany first got sick under the euro as a result, but then underbid its partners to cure itself. It is high time for France to challenge the German mantra that stability causes growth. Because unless you actually find a willing sponsor of your perpetual export surpluses, it just doesn’t. It may be left to France to either convince its euro axis partner to finally accept this simple truth, or else to call an end to the euro folly that has brought needless catastrophic hardship to millions of Europeans.