Rigged euro has given Germany an unfair advantage, blasts TIM NEWARK
PRESIDENT Trump’s trade chief Peter Navarro is right to call out Germany over its shameful rigging of the euro. It has been doing it for years, inflicting the misery of high unemployment across southern Europe in order to keep its own workers busy.
Germany’s Chancellor Angela Merkel and her EU allies always like to take the moral high ground
Every time Greece, Portugal or Spain teeters on the edge of becoming a financial basket case, sending the euro plunging, German businessmen rub their hands. A cheap euro keeps their high-end exports booming. When are southern Europeans going to wake up, leave the euro and set their own advantageous currency rates?
Chancellor Angela Merkel and her EU allies always like to take the moral high ground, saying Europeans must endure the growing pains of a single currency in order to pursue the ideal of a united Europe.
Despite millions of ordinary Germans thinking it was wrong to keep supporting a profligate Greek state when it hit the buffers in 2008, Merkel argued it was good for the European project. “If the euro fails, Europe fails,” she preached. What she actually meant was: “If the cheap euro fails, Germany fails.”
A cheap euro keeps their high-end exports booming
As they see post-Brexit Britain prosper we can only hope that Greece, Italy, Spain and Portugal gain the courage to break their chains with Germany and the EU
And she’s still at it. In 2015 the Greeks needed another bailout of £61billion. Rebel German MPs voted against it but Merkel knows which side her bread is buttered and pushed it through, keeping the euro nice and cheap.
Greece is kept barely alive like some emaciated junkie in order to serve the purposes of her Teutonic dealer. Economic humiliations are piled on the Greeks and yet they still hold out their hands hoping for another fix to keep them shambling along for a few more years while all the time Germans get fat on their artificially cheap exports.
They’ve even had to shut up and accept the misery of hundreds of thousands of migrants flooding through their countryside and towns thanks to Merkel’s open-door policy when other countries could afford to say no and erect their own barriers.
Shame on the once heroic anti-establishment Greek leader Alexis Tsipras for putting up with this charade that condemns his people to continued impoverishment. In 2015, when the Greeks voted a resounding No to stringent EU bailout conditions, Tsipras ended up ignoring the vote and enacting even harsher pension cuts and tax increases.
In 2015 the Greeks needed another bailout of £61billion
Perversely, although the Greeks have rioted and voted in extreme Left-wingers in protest at the situation, in opinion polls a clear majority of them still want to stay in the eurozone. How bad does it have to get?
Unemployment among the Mediterranean countries is appalling. In Greece it is 23 per cent, Spain 19 per cent, Italy 12 per cent, Portugal 11 per cent. In Germany it is just four per cent (the UK is 4.7 per cent).
Among people under 25 the situation is even worse. In Greece 46.5 per cent of young people are unemployed, in Spain 43.6 per cent, Italy 36.4 per cent. In contrast Germany has the lowest rate of youth unemployment in all European countries at 6.9 per cent. Clearly the benefits of globalisation are not being fairly spread.
Generations of young people are growing up with no prospect of a career in their own countries. It is no wonder many of them pack their bags and come to the UK while they still can. University graduates from Athens, Rome and Madrid are happy to work in bars and cafes in London.
Critics have said that the Germans are throwing away their hard-won reputation for financial rectitude by indulging the spendthrift Greeks but these same economic pundits are clearly blind to the cynical way German businessmen are exploiting the failings of their southern neighbours. Their economic woes are a delight to the Germans.
Theresa May’s recently launched Industrial Strategy was a positive blueprint for how the UK can thrive after Brexit and it gives lavish praise to the German economic model.
Certainly there are many aspects we could emulate such as their emphasis on technical education. We need fewer arts graduates and more engineering apprentices. Germany’s so-called Mittelstand – medium-sized, family-run businesses – also tend to take a longer term view of investment, another aspect of the German business culture from which Britain could benefit.
However, all that is nothing compared to the crude advantages of flagrantly exploiting the EU to keep their currency cheaper at the expense of their fellow Europeans.
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It now seems clear that German leaders embraced the euro as a way of winning a bigger market share of world trade. Labour costs were forced down and the result has been a boom for them with Germany recording surpluses three years in a row above the six per cent of GDP allowed by the EU.
This is illegal and the EU should be fining them but does Merkel care? Named as Time’s person of the year in 2015 for her open-door migrant policy, she believes she’s on the side of the angels. In fact it is Donald Trump and his trade envoys who should be congratulated for their plain speaking.
As they see post-Brexit Britain prosper we can only hope that Greece, Italy, Spain and Portugal gain the courage to break their chains with Germany and the EU.
They can then let their currencies devalue and we can fly south to Mediterranean beaches where we will raise glasses of delicious cheaper wine to the end of Germany’s great euro racket.
5 hours ago
The EU/Euro was only ever about Germany – hasn’t the penny dropped yet?
12 hours ago
The article is pointless:
Every statics shows that the import /export surplus ofGermany is almost the same since 1951, when you consider the absolute amount ofthe export. For example:
So: If the introduction of the EURO has any significant influence on the sureplus, you would see it in these statistics, But you don’t.
And when there is no corralation between the introductionof the EURO and a rise of the surplus, why postulating a Manipulation of the currency or wrong real-effective_exchange_rate-indexes or low wages or …which would lead to this high surplus?
6 hours ago
It was Germany’s manipulation of the Euro that allowed the situation to continue. Had there been an even playing field amongst the Nation’s of Europe the German miracle would have vanished a long time ago.
3 hours ago
What do You mean with a ” even playing field”?
How has germany Manipulated the euro?
15 hours ago
So whats new ?. The Germanic mindset is one of domination and control.Stretching way back into history they have viewed themselves as the leaders of mainland Europe. Everything they have done and continue to do so is an extension of this mindset. Nothing Germany does would ever allow another party to be more beneficial than them. Everything they do and say is geared for their own ends. The whole EU construct has been devised and operated to the benefit of Germany…the Euro being the most obvious example.
17 hours ago
Of course it has – anyone with even one brain cell should be able to see that .
19 hours ago
And that is also the aim of all those “free trade” deals. It was the embedding of EU policies around the world in exchange for paltry free trade. Germany cannot compete if it has a strong currency combined with no natural resources. Hence we must tax carbon.