Newsletter 2010/05/12 - Thinking the Unthinkable
BERLIN (Own report) - Following the passage of the 750 billion Euro bailout package, the debate on Germany's leaving the monetary union has become more intense. Business representatives confirm that German industry, which exports heavily to other countries within the Euro zone, has up to now greatly benefited from the common currency. If an austerity program can be successfully imposed on Southern Europe, establishing a pan-European economic "model" patterned on Germany, the Euro will remain advantageous for Germany. But strong resistance is expected from Greece and other countries. If expensive transfer payments cannot be avoided, it may become necessary "to think the unthinkable" of Germany "leaving the monetary union" writes the business press. In the long run, Germany's withdrawal from the Euro
zone is, in fact, highly probable, the Swedish economics scholar Stefan de Vylder tells german-foreign-policy.com. The first insinuations about the probable consequences indicate that serious tensions can be expected in Europe.
A costly mistake
STOCKHOLM german-foreign-policy.com spoke with the well known economist Dr. Stefan de Vylder about the Euro crisis and Germany's possible leaving the Euro zone.