Monday, December 26, 2011

The Steelyard & German gains from 10 years of the Euro.

There is a good assessment of the gains made by Germany in the economic sphere following ten years of the circulation of euro notes and coins, this morning in AsiaOne news, linked here. Some quotes:

"With a single currency zone, all the uncertainties about exchange rates (within today's eurozone) disappear," Henrik Uterwedde, deputy director of the Franco-German Institute in Ludwigsburg, pointed out.

For Germany's car industry which boasts heavy hitters such as Daimler, BMW and Volkswagen, this has certainly been good news.

Since the euro was introduced, German carmakers have saved between 300-500 million euros (S$500-850 million) annually on transaction costs, according to Juergen Pieper, analyst at German bank Metzler

Ferdinand Fichtner, economist at the Berlin-based DIW economic institute, highlighted the importance of the eurozone as a marketplace for German goods.

"About 40 per cent of its exports are destined for the eurozone and 20 per cent for the rest of the European Union," he said.

It is somewhat surprising, given the substantial nature of these gains, the dangerous games the German government seems recently prepared to play with the underpinnings of the common currency, which is why a research on the history of the Hanseatic League, provides such fascinating reading over this holiday period. Here is the Wikipedia entry on the Steelyard, the German factory in London, eventually removed by Queen Elizabeth the First, in 1598, predictably re-opened by James I, but never subsequently regaining its same power or influence.



Post a Comment

<< Home