Quote:
Originally Posted by ganbaru
Just wondered what would happen if Germany alone would ''leave'' the Euro, but I guess than the result would be rather bad  |
A departure from Germany from the Euro would likely have a negative effect on the value of euro and eurozone growth rates in the short run.
It would be worse for Germany though. The German economic growth of recent year has been export driven and based on wage reduction schemes. A separate German currency would appreciate in comparison to the Euro, which would wipe out Germany's competativeness in relation to several of it's most important trading partners. So a German departure from the Euro is extremely unlikely.
The negative tone of the Reuters article, without stating anything particuarly new or worrysome, is probably meant for UK consumption. The media over there love EU/Euro doom stories.