Saturday, November 20, 2010

Why is Germany in Control?

A reader asked why Germany is so powerful in Europe. Here's my answer.
Germany has a lot to say because it's the richest country in Europe - honestly, maybe in the world - today. That means that when the Eurozone that runs on the Euro currency wants to support a country financially, Germany is the country that steps up to the plate. Think USA and the Marshall Plan, but not so big, and you've got the idea. And, German citizens are getting a little bit wary and maybe frightened of the prospect of bailing out every Eurozone country that finds itself in a hole financially, especially if they come to believe that Germany will bail them out, no matter how irresponsible they are...Greece, Ireland, Portugal Spain. Germany is fiscally sound and conservative, and it also has a manufacturing sector that exports to every other European country, and to Asia, mainly China. So, Germany wins when other Eurozone countries have to depend on its imports coming from Germany. There's the rub. A lot of Eurozone countries are beginning to feel gouged by Chancellor Merkel and her government.

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