When the Spanish joined the Euro it was never
explained to them that this meant an end to the
mechanism of devaluing the exchange rate as an
instrument for competitive adjustment of the
countryÕs economy during times of crisis.
Greek and Spanish citizens should have received more
information from their politicians about the risks
involved in joining the Euro. Because once you are in,
getting out is very traumatic and generates too many
problems.
Germany has financed itself with money from the
peripheral countries and has had a currency which is
much more devalued than the Deutschmark would
have been. If Germany had been outside the Euro, it
would have levels of exports as a percentage of its
GDP which are much lower than those it currently
has, and during the crisis its exports would have
suffered more.