Wednesday 12 February 2014

COULD GERMANY LEAVE THE "EUROZONE" ?


The possibility of Germany leaving the EUROZONE and the EURO, has been envisaged following the judgement of the German Constitutional Court in Karlsruhe.

This Court ruled that the European Central Bank might infringe German legislation by using "quantitative easing" methods to combat the effect of "deflation" in the EUROZONE and thereby defend the EURO.

Alternatively this also implies that the German court considers that German Laws are superior to EUROZONE LAWS. However, the German Court has referred the matter to the ECJ - the European Court of Justice.  This will take time.

What this reveals is that not just a few people in Germany are worrying about the cost of "saving" the EURO and the methods the ECB (EUROPEAN CENTRAL BANK) is employing. 

To avoid these costs, some think Germany could simply just "leave" the Eurozone, but this not possible.  It must also leave the EURO (and then create the NEW EUROMARK ?).  All this could be even more costly than anyone has yet had time to calculate.  

No country can just walk away without paying for its obligations, for its share of outstanding past costs for "saving" the EURO and also for many other EUROZONE benefits.

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