Editor's note: Clyde Prestowitz writes on globalization for ForeignPolicy.com and is president of the Economic Strategy Institute. John Prout is the former Paris-based treasurer of Credit Commercial de France.
By Clyde Prestowitz and John Prout, Special to CNN
With Greece probably heading for an exit from the euro, the European and global economies may be facing disaster. However, there is still time for European leaders to reverse this destructive dynamic with one simple, outside-the-box solution: Instead of pushing Greece out of the eurozone, Germany should voluntarily withdraw and reissue its beloved deutsche mark.
The analysis of the problems of the euro and the European Union has long been upside down, focused on the debt and competitive weaknesses of the so-called peripheral countries (Greece, Italy, Spain, Portugal and Ireland) and especially of Greece. But issues of debt and competitiveness existed and were dealt with rather easily long before the euro arrived, through periodic devaluation of the currencies of the less-competitive countries against those of the more competitive countries, and especially against the deutsche mark.
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Germany would do itself a great favor by leaving the Eurozone as would the other member states. Like Peter,Paul and Mary once said in a song back in the '60's,"when will they ever learn?"
Indeed, the pressure on Germany is enormous. The U.S. and the U.K want Germany's economic strength to be deployed behind Europe's debts. This might be achieved through euro-bonds or borrowing against the European Financial Stability Facility (EFSF). But the Germans don't want it. Indeed, a poll indicated that 50% of Germans want the Deutsche mark back. That is why Chancellor Merkel said that there will be no "debt union" and is mindful of her voters. Nevertheless she defended the single currency and claimed it as a German national interest: "Without the euro, there is no Europe," she said. No doubt Germany could survive well with a return to Deutsche Mark. The question is, would France follow suit as well? François Hollande had hinted leaving the Eurozone in his presidential campaign. How about the Netherlands and Luxembourg, two economic powerhouses, would they stay?
What Angie Merkel meant j.von hettlingen, is that without the Euro there will be no Eurozone. In fact, the Eurozone is a bad idea all the way around and it's about time that the European leaders came to their senses about it!
http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=8354
Check this out http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=8354
How come all these "economists" have such great advise about what the Germans and other Europeans should do, when they have really nothing to say about our own economic problems? Hello?
I had made the same case back on 1 December 2011 on my website. See my article: Merkelisation: angels or demonstration: Eurozone or Euromark? Crunch-time for Europe: risks and opportunities. Link: http://www.fmodonnell.org/Political.html.