Germany Market
Monetary system in 2011 in Germany to face two choices
Portugal successfully sold bonds, temporary relief from the concerns of investors and politicians. While Germany and the UK The good economic data, but also to pick up market sentiment. But the euro dilemma unresolved, the debt crisis may break out at any time into the euro crisis.2011 to "defend the euro" has become Europe's politicians are basically the same slogan. German Chancellor Angela Merkel recently often say that "if the euro fails, Europe will fail." Even the claim that confidence in the euro against the Euro Group Chairman Juncker of Luxembourg, it was also strongly urged to stabilize the euro and the euro issue bonds, and has a dispute with Merkel. Because Merkel does not agree to issue Eurobonds, do not want to expand the size of the euro rescue fund, Juncker accused Germany "is not Europe."
This is why Germany is facing an embarrassing situation. Germany, Europe's leaders are willing to do, but do not want to pay too much for the rest of Europe. The result is that, in dealing with the debt crisis, the German government's policy of not allowing European allies satisfied, we can not please the people at home.
It seems other members in the euro area, Germany as a new division of Europe's economic leader, and the duty to defend the euro should assume primary responsibility. In fact, last year, € 110 billion rescue plan in Greece, Germany to Greece to provide 224 million euros in bilateral loans. After the € 750 billion in bailout plan, Germany has provided € 148 billion in loan guarantees. In fact, because the Germans do not want to "pay for the mistakes of others", the money was not a happy. The beginning of the Greek rescue plan is not accepted by Angela Merkel, Germany's European allies are therefore criticized. Although the German Federal Parliament finally approved a rescue plan twice, but almost all the opposition abstaining, the German voice of public opinion is a bad-mouthing. As the opposition party had already made clear the euro rescue plan for the dissatisfaction, the ruling party in local elections in North Rhine-Westphalia after the defeat.
Dissatisfaction with the status quo of all, the Germans against the German mark obsession. Earlier an agency survey, 56 percent of Germans are more willing to use Deutsche mark, only 43% of people believe that the euro is the right choice in Germany. More exaggerated, according to the German Federal Bank, to the end of 2010, as well as nearly 70 million German marks in the market, "Circulation." That is, in use for 12 years after the euro, many Germans still clutching the hands of many of the German mark.
Germans are fond of the German mark, on the one hand is the "past good old days" nostalgia. Implementation of the German mark in 2002, the euro exchange rate of 2:1, full use of the euro, the German people were not only thin purse, prices have almost doubled. Although statistics show that from 1987 to 1998, is still using the German mark in Germany, the German inflation rate up to 5.1% in 1999 so far, the highest inflation rate in Germany is only 2.6%. But the Germans insisted that, relative to the euro, German mark more firm. On the other hand, is the German people do not want the so-called "problem countries" to pay, out of trouble you can just feel the euro, German mark back to the "good times", and even some economists have advocated re-enable the German mark.
If Germany really leaving the euro, the euro zone could really existed in name only. In fact, this result is not good news for Germany. Not to mention the process of European integration would have been so hard hit, restart the German mark for Germany meant that Germany once again become a hard currency countries, relative to the economy weak European currencies, the German mark will be greatly appreciated. Price competitiveness of German products will decline, which directly affect German exports. German economy in 2010 grew by 3.6%, the main driving force came from exports. Germany is actually the beneficiaries of the euro area.
Some experts have pointed out, for Germany, there are only two choices: either to adapt to the current operating rules of the euro area and its partners are ready to pay the debt, either out of the single currency. Since the exit is unlikely to do, Germany is no other choice.