Germany Should Leave the Euro

By Shlomo Maital  

   In his Foreign Affairs blog, Clyde Prestowitz proposes a radical idea for ending the slow death of the euro and the prolonged agonies of Greece and Spain.  Let Germany (not Greece!) leave the euro. 

  The reasoning is so simple.  Germany’s economy is the most powerful in Europe. Because of its strength, the euro is far too strong, given the weak condition of France, Italy, and other countries.  So Germany, far from being the savior of the euro with its money, is in fact the enemy of it.  If Germany were not included in the euro, the euro would drop to parity with the dollar. That would make the euro nations 30 per cent more competitive. 

  So, let Germany leave the euro, and restore the deutschemark.  The good old DM.  There would be massive support in Germany for this move. Merkel’s re-election would be assured.  The euro of the remaining 16 nations would then plummet.  And this would boost their struggling economies and end the current recession.

    It’s perhaps the only way to save the euro.  Let the strongest nation leave the euro bloc, not the weakest.  This idea deserves serious discussion. It’s time Europe marshaled some innovative thinking, as it drags America, Asia and the rest of the world down into the maelstrom with it.