Why have the Germans been so generous and why is the eurozone so important to Germany?
Over the last ten years external demand generated almost 70% of the growth in overall demand for German goods. Today, Germany is a touch off being the world's 2nd largest exporter...
Some will argue that the free-trade area we call the eurozone, gives Germany an exclusive competitive advantage. Exchange rates have been favourable and more importantly, Germany has enjoyed a captive market. The EU buys almost half of Germany's exports or just over 8 times the goods exported to China. In today's crisis other EU countries faced with rising costs are unable to control imports or devalue their currencies. Germany continues to export without restriction whilst the economic conditions in most of the remaining EU countries deteriorate..
Over the last ten years external demand generated almost 70% of the growth in overall demand for German goods. Today, Germany is a touch off being the world's 2nd largest exporter...
Some will argue that the free-trade area we call the eurozone, gives Germany an exclusive competitive advantage. Exchange rates have been favourable and more importantly, Germany has enjoyed a captive market. The EU buys almost half of Germany's exports or just over 8 times the goods exported to China. In today's crisis other EU countries faced with rising costs are unable to control imports or devalue their currencies. Germany continues to export without restriction whilst the economic conditions in most of the remaining EU countries deteriorate..
No comments:
Post a Comment