If not otherwise defined, the fact that within the European Monetary Union the competitiveness of the individual member states – already at the time of entry into EMU was very different and – these differences – for whatever reason – have hardly been compensated until now; indeed, in some cases (Greece, Portugal, Spain, Italy, Cyprus) they have even increased. In spring 2012, for example, manufacturing costs in Greece were on average just over twenty percent higher than the average for the EMU members and a full thirty percent higher than the Turkish level. The differences in unit value ratios are far greater still. In view of this, many economists predict that EMU will come to an end unless a transfer union of some kind is established to even out the biggest differences. Since around 2010, such a transfer union has been emerging more and more – contrary to the European treaties. – See devaluation, fiscal, alignment automatism, bond spread, disfunctionality, currency area-related, blackmail potential, European Monetary Union, fundamental error, Europayer, exit, fiscal pact, Friedman thesis, money multiplication, monetary union-internal, Greece crisis, peer pressure, opting-out agreement, Plan C, preclusive deadline, return ideology, blocked account, Stability and Growth Pact, structural reforms, imbalances, EMU-internal, currency area, optimal, unit value relationship.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/