Breaking up the euro area: How to resign from the club

The Economist skriver bla

Kenneth Bernhard Kjeldsen,


The Economist skriver bla.:

The main reason why a country might choose to leave the euro is to regain the monetary independence it sacrificed on joining and to set monetary policy to suit its own economic conditions. This could apply to the strong as well as the weak. Germans may long to have the Bundesbank in charge again. It would surely not take risks with long-term inflation, by keeping liquidity lines open to weak foreign banks, or with its political independence, by buying government bonds. And given the strength of the German economy, it might raise interest rates soon.

As it is, the European Central Bank (ECB), though based in Germany and modelled on the pre-euro Bundesbank, has had to react to the economic and financial weaknesses of the rest of the euro zone in ways that Germans do not like. Add to this taxpayers’ disgust at having to stand behind the public debts of less thrifty countries, and the idea of abandoning the euro looks enticing to some Germans. That appeal might extend to countries, such as Austria and Netherlands, with strong economic ties to Germany. They might prefer to join a new D-mark block than to stay with the euro, were Germany to leave.