At the same time the euro gives Germany a benefit much greater than inter-EU German transfer payments. By greatly weakening the euro, the zone's fiscally-challenged countries pull open the gates for German exports which roar out of the Europe with significantly lowered sticker prices in other currencies. It appears to be a massive benefit since one can easily imagine a uniquely German currency being 30% higher. Now that's a bargain.
What's more, Germany may even have a built-in advantage datinng back to the inception of the euro, when the Deutsche Mark was brought into the union at what many believe was about a 6% undervalued rate.
"Updated IMF data suggests that by 2017 the German pricing edge built into the euro had about doubled to over 12%."[1]
What's more, Germany may even have a built-in advantage datinng back to the inception of the euro, when the Deutsche Mark was brought into the union at what many believe was about a 6% undervalued rate. "Updated IMF data suggests that by 2017 the German pricing edge built into the euro had about doubled to over 12%."[1]
https://www.forbes.com/sites/miltonezrati/2018/01/23/the-ger...