Eurozone news: UK has the right to keep the pound, Germany should have kept Mark – economist | World | News


And Hans-Olaf Henkel thinks that the current situation is suitable for only one country – the France of Emmanuel Macron. Meanwhile, Mr Henkel said that even before the recent coronavirus crisis, it was already clear that the concept of a ‘one size fits all’ single currency was fundamentally flawed.

The pandemic has had a devastating economic and health impact throughout the bloc, with the Spanish economy contracting 18.5% between April and June, having already fallen 5.2% in the previous three months.The French economy shrank 13.8%, Italy experienced a decline of 12.4%, and even in Germany, the economic power of the EU, the decline was 10.1%.

Across the block, the average contraction was 11.9%.

Mr Henkel, who resigned from the European Parliament last year, told “The eurozone shows perfectly why it is foolish to change economies to adopt a common currency.

“On the contrary, a currency should rather correspond to the reality of a country’s economy.

“In other words: it was wise for Britain to keep the pound and it was foolish for Germany to give up its D-Mark. ”

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“However, even before the corona crisis, the eurozone was seriously lagging behind not only the world but also EU countries that are not part of the eurozone.

“No wonder countries like Denmark, the Czech Republic, Sweden and Poland have no desire to join the common currency.

“This currency” one size fits all “is actually only suitable for France.

“It is too low for Germany and the other northern countries; it is too strong for the southern euro-zone countries.

“Result? Italy, Spain and Greece lost their export markets as Germany’s trade balance exploded! ”

Mr Henkel added: “The euro is like a shirt that is only available in one size.

“For some it’s too tight, for others it’s way too wide.

“As a result, countries like Italy or Spain have to lose weight to adapt, that is, need a lot of reform, while Germany’s productivity has to drop, which ‘she has been doing for years.

“The euro is however perfectly suited to France; one of the reasons why this country remains reluctant and unable to reform.

“If the euro is to survive, it can only do so by becoming everyone like the French. “


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