The Euro – A German Perspective

• Main Author: Horst Brezinski
• Format: Article
• Language: English
• Published: Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house 2019-12-01
• Series: Scientific Annals of Economics and Business
• Subjects: european monetary union; ecb; euro; optimal currency area; current account.
• Online Access: http://saeb.feaa.uaic.ro/index.php/saeb/article/view/971

The Euro has been a hotly debated issue in Germany. Still 20 years after the introduction of the Euro there exist many opponents in Germany. Are their arguments correct? Has Germany benefitted from the Euro or is Germany suffering from the Euro? The article discusses these questions by looking back on the theoretical foundations for a single currency. Following this analysis, the macroeconomic performance of the Eurozone and especially of Germany is presented. Macroeconomic calculations show that Germany seems to be the biggest winner of the introduction of the Euro. The article presents some explanations for this result and makes a short-term and long-term appraisal about winners and losers and potential problems in the future. Different scenarios will be outlined for overcoming the problems with the Euro and lessons for the future will be drawn.