Berlin repels proposal for cheaper euro

José Manuel Barroso, President of the European Commission,  Seán Barrett, Chairman of Dáil Éireann ( Irish Parliament Speaker), Martin Schulz, President of the European Parliament, Herman van Rompuy, President of the European Council,  Anni Podimata, Vice-President of the EP and Maroš Šefčovič, Vice-President of the EC in charge of Inter-Institutional Relations and Administration, (from left to right). (EC Audiovisual Services).

José Manuel Barroso, President of the European Commission, Seán Barrett, Chairman of Dáil Éireann ( Irish Parliament Speaker), Martin Schulz, President of the European Parliament, Herman van Rompuy, President of the European Council, Anni Podimata, Vice-President of the EP and Maroš Šefčovič, Vice-President of the EC in charge of Inter-Institutional Relations and Administration, (from left to right). (EC Audiovisual Services).

“No, the euro is not overvalued, if the long-term tendencies are taken into account”, said yesterday Angela Merkel’s spokesman, Steffen Zaimpert, in Berlin, as if the rest of the Eurozone was not existing. He added that the long-term competitiveness cannot be achieved through monetary measures and accommodating exchange rate policy. Seemingly the European Sting was in his mind when George Pepper wrote yesterday that, “The German theory is that if the products are good, they will be selling all over the world. The monetary support can only be short-lived, creating more problems than it solves”.

This completely Teutonic statement by Angela Merkel’s press representative, with repeated references to “long-term” tendencies, reminds everybody that being a German is an ideology in itself. As if mainstream economic theories like “Keynesianism”, have never crossed the river Rhine and no German ever heard that “in the long-term we are all dead”. The Germans insist that we have to live for the future, forgetting the present. It’s the Hegelian ideology that still haunts them and forcing them to live in “the realm of pure thought”, that is nowhere!

Obsession with strong euro

After the comments by Zaimpert in favour of a strong euro, the European currency gained grounds and climbed to 1.3535 dollars from 1.3506. The spokesman went even further and brought…history into the discussion. He said that, “seen from a historical perspective the euro is not overvalued at the moment”.

Coming back down to earth this statement of the representative of the German Government is obviously a direct answer to the French President, Francois Hollande, who said yesterday that the European Central Bank must have an exchange rate policy, targeting a realistic euro parity with the rest of the major world currencies. In reality Hollande wanted to say that the euro is already overvalued and the rest of the Eurozone cannot cope with such an expensive monetary unit. Exports are becoming very expansive and imports cheap, thus ruining growth prospects for everybody else in Eurozone, than the Germans.

The Berlin intervention however had one more target. It’s today’s European Union Summit in Brussels. It goes without saying that the French will be very active today in the Belgian capital, promoting the discussion about what Francois Hollande said for the European Central Bank and the euro. Berlin tries in this way to pre-empt any French attempt, to make the euro an issue at least in the corridors of the Summit, if not at the main table.

The expensive euro threat

Paris is not alone in this. Rome, Madrid, Athens, Dublin, Lisbon along with The Hague, Vienna and Helsinki are also threatened by the expensive euro. Francois Hollande’s proposition that the Eurozone member states must agree on a “realistic” exchange rate for the euro’s parity with the rest of major currencies, found immediate support all over the single money zone.

The question is how to make Berlin understand that the common currency is not only for Germany, and its austere ideologies, but for all the 17 member states of the Eurozone.

 

 

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Threats from mammoth banks and Brussels fuel May’s poll rates

Medical Devices Regulation: Commission welcomes Council support to prioritise the fight against coronavirus

Why youth unemployment is so difficult to counter

European Youth Capital 2018 : Cascais

Russia and the EU ‘trade’ natural gas supplies and commercial concessions in and out of Ukraine

Bitpay @ TheNextWeb 2014: Innovation’s Best Friend

Yemen: Escalation in fighting must stop ‘before it’s too late’, Griffiths tells Security Council

How to have a good Fourth Industrial Revolution

Plants, the ‘core basis for life on Earth’, under increasing threat, warns UN food agency

Business can be profitable AND drive progress on societal priorities

An analysis of the impacts of climate change on human health

Parliament to vote on new European Commission on 27 November

Trade protectionism and cartels threaten democracy

Britain, EU take edgy steps to unlock Brexit talks as the war of words rages

Here’s what happened when one Guatemalan town went to war on plastic waste

How blockchain can manage the future electricity grid

Gender equality, justice in law and practice: Essential for sustainable development

We can save the Arctic if we follow the Nordic countries’ lead

African cities will double in population by 2050. Here are 4 ways to make sure they thrive

Each for Equal is the women’s day theme – these maps of the world show how far we have to go

A new catastrophic phase in the Syrian carnage

Modern society has reached its limits. Society 5.0 will liberate us

The 13th round of TTIP negotiations hits a wall of intense protests and growing concerns

Dual Food Quality: Commission releases study assessing differences in the composition of EU food products

Poor Greeks, Irish and Spaniards still pay for the faults of German and French banks

Nuclear weapons in Lithuania: defence against Russia or target for terrorists?

You might soon be travelling without a passport – this is how

Don’t dismiss start-ups founded by millennials. This is how they succeed

EU prolongs economic sanctions on Russia by six months

Preparing medical students being digitally as well as socially responsible

Why COVID-19 makes a compelling case for the wider integration of blockchain

Global Citizen-Volunteer Internships

Piracy and high seas crime growing, becoming more sophisticated, UN Security Council told

Tsipras imposes more austerity on insolvent Greece; plans to win new early election soon

Major UN aid operation for 650,000 gets underway across Syria-Jordan border

EU and New Zealand launch trade negotiations

Better air pollution data is helping us all breathe easier. Here’s how

Ebola outbreak in DR Congo conflict zone ‘remains dangerous and unpredictable’ – UN chiefs

A Sting Exclusive: Towards better business opportunities for the EU and its neighbours, Commissioner Hahn live from European Business Summit 2015

Guterres lauds UN peacekeeping, highlights need to bridge ‘critical’ gaps

Making Europe’s businesses future-ready: A new Industrial Strategy for a globally competitive, green and digital Europe

Coronavirus: Commission concludes talks to secure future coronavirus vaccine for Europeans

UN food agency appeals for access to key storage facility amid fight for Hudaydah

A ‘system value’ approach can accelerate the energy transition. Here’s how

Security of 5G networks: EU Member States complete national risk assessments

The EU tells the bare truth to the UK that there is no such thing as easy divorces

Seven trends shaping the future of the mining and metals industry

European financial values on the rise

African continent ‘an example of solidarity’ towards migrants and refugees: UN chief

The ITU Telecom World on 14-17 November in Bangkok, Thailand

Stress, overtime, disease, contribute to 2.8 million workers’ deaths per year, reports UN labour agency

These are the next big products in consumer technology

What’s behind South Korea’s elderly crime wave?

‘Being open about my mental health created a better work culture’

Cancer is a growing global threat and prevention is key, UN study shows

We can’t tell if we’re closing the digital divide without more data

Rising inequality affecting more than two-thirds of the globe, but it’s not inevitable: new UN report

2018 Golden Pen of Freedom Awarded to Maria Ressa of the Philippines

China’s 13th Five Year Plan and the opportunities for Europe

90% of fish stocks are used up – fisheries subsidies must stop

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s