Germany is Now the Sole Dominant Economic Power in Europe

The European Union does Germany a lot of good. To say that the country would develop better or worse without the common currency would be risky. However, the fact is that Germany is doing much better than other EU-members and the Eurozone has never been so dominated by one country. Germany has been growing faster at the regional as well as at the national level and has been gaining its relevance at others’ expense. Accusations of German supremacy may well be grounded, but then the question is who is to blame? Those who are able to improve or those who are lagging behind?

GEFIRA’s analysis of the GDP changes for different EU countries in the years 2000-2015 leads to the following conclusions:

  1. The old Eurozone (EA12) economical convergence between countries has been reversed after the crisis;
  2. German regions have been growing as fast as less-developed countries since the 2004 EU enlargement.

The euro has been often accused of having caused the problems faced by Southern Europe. The euro used to be undervalued for German economy and supported its exports, while for countries like Italy, Greece or Spain it was too strong, inducing their trade deficit and a large debt. There should also be no doubt that Germans have had a decisive word during the Greek crisis and that the fate of Greek citizens is at the hands of Wolfgang Schäuble and Angela Merkel rather than of Aleksis Tsipras. Conservative German economic and monetary policy is opposed also by France, the second largest EU-economy.

2 comments on “Germany is Now the Sole Dominant Economic Power in Europe

  • db periscop says:

    During last 5 decades of last century, the Deutsche-Mark was periodically re-evaluated as symmetrically for instance French Franc was periodically devaluated.

    As Euro is now their Unique multi-national Currency,
    mechanically, European Union is condamned

    – to become fully Federal, a single Nation : the United States of Europe dominated politically and economically by Germany. = the Euro = Deutsche-Mark.

    – … or to burst :
    Who can realistically beleive nowadays, Europe will not burst ? if it was only to face the Immigration crisis. Who can beleive there is a majority in any of the 28 European Nations to accept to disappear, and be ruled by the Federal United States of Europe ‘s Laws …. dictated by Germany / German interest.

    De Gaulle organized European Union beginnings as an Europe of Nations,
    whose Engine could be Franco-german, because
    the structural economic domination of Germany
    would be permanently counter-balanced
    by the structural political domination of France,
    giving Europe its independance as a whole.

    …. by France being out of NATO, having a permanent Seat at the ONU Security Conciil, its own and autonomous nuclear force od dissuasion, contesting the International Monetary System could be based (instead on Gold), on US Dollar, as UNIQUE International Currency) … .

    Why, 1ST, Euro has not been conceived to be the “common INTERNATIONAL Currency” for all Europeans and all those in the rest of the World which would have liked to enjoy an alternative at the worldwide hegemony of the USDollar and therefore of the USA ?

    Cf le Général de Gaulle, l’UE et le “Fédérateur Extérieur”

  • Of course, you have a large historical army fighting each other in European history back to the Roman Empire. This is Europe the children of Mars and Barbarians infighting while the Empire rules from above. If most of the dynamics could be North European so of course the South should rule for safekeeping of all.

    Robert Sherman Nix III


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