Germany records first monthly trade deficit since 1991 as inflation soars

Re:Germany records first monthly trade deficit since 1991 as... by Mlller on Monday July 04, 2022 @05:57PM (#31982158)

“europeans agreed to an open market and common currency that included Germany only if [Germany makes a certain concession]”

It was rather the other way round: Germany was made to agree to the euro project as a concession for reunification.[1]

All in all, this seems to have been beneficial for a majority of normal people in the countries getting a stronger currency and for a minority of people in Germany, who export: Consequently, Germany’s wealth distibution tends to be the most unequal in the euro zone,[2] and its median wealth is slightly below that of Slovenia and significantly below that of France, Italy and Spain.[3]

[1] https://voxeurop.eu/en/you-get-unification-we-get-the-euro/

[2] https://www.reuters.com/article/us-germany-wealth-idUSBREA1P...

[3] https://en.wikipedia.org/wiki/List_of_countries_by_wealth_pe...

[ Parent | on HN ]

Re:Germany records first monthly trade deficit since 1991 as... by quarantaseih on Tuesday July 05, 2022 @03:29AM (#31985392)

"It was rather the other way round: Germany was made to agree to the euro project as a concession for reunification."

So the Germans accept the Euro in exchange for re-unification (France's biggest mistake IMO) Thats one negotiating point.

Second negotiating point: who's in charge of the Euro? Who's industrial interests are represented by the ECB? Germany needs cheap imports (strong currency) or its industry screeches to a halt.

[ Parent | on HN ]

Re:Germany records first monthly trade deficit since 1991 as... by imtringued on Tuesday July 05, 2022 @06:39AM (#31986564)

Germany needs a currency that is too strong for its direct neighbors and too weak vs the world economy. Something like shouldn't even be possible yet this entire HN submission is about how Germany should continue distorting the markets.

[ Parent | on HN ]