Originally posted by Lundos
No, I'm interested in this:
"This is what germany does with the Euro, except they have greece, italy, Spain, portugal, Ireland and Finland to devalue the euro for them. It's why their exports are so competitive..."
Germany's economy is booming. They are the only European country who managed to hang onto their manufacturing hubs. What would be an extremely strong Deutsche mark would undermine the competitiveness of German goods overseas, because it makes them more expensive for foreigners to buy.
Thus, by being in the Euro, a currency also pegged to weak economies such as the aforementioned, Germany artificially makes their exports competitive while not having to deal with a strengthening currency.
The currency is too weak for Germany(which helps them) and too strong for the weaker countries, making them unable to recover from 2008.
This is why Germany is the biggest defender of the eurozone, and will keep bailing out Greece: their economy needs the weakness that relatively poor countries like greece provides.
Greece and many other southern European countries should have left the currency union ages ago, but they have sacrificed so much to stay in that their governments don't want to admit that their suffering was in vain.
That is how Germany abuses the Euro. They also control European central bank policy.