As the Eurozone experiment unravels, German industries eagerly await their consolation prize — a period of ultra-competitive exports.
Other forecasts are even more dire. “I can easily imagine the euro reaching parity with the dollar by the end of the year, give the markets’ tendency to exaggerate,” says Anton Börner, president of the Federation of German Wholesale and Foreign Trade.
A devaluation of the euro does not, of course, represent a major problem. On the contrary, many have long been complaining about how expensive the euro had become relative to the dollar. Business in China had also suffered, given that the Chinese yuan is pegged to the dollar. That pressure is now dissipating. Indeed, aside from making trips to the US slightly more expensive for Europeans than they have been in the past, there are few disadvantages to a lower euro exchange rate.
What’s the German equivalent of ‘crocodile tears‘? It’ll come in handy some day.