Global Analysis from the European Perspective. Preparing for the world of tomorrow

The euro failed during the pandemic

Responsible entrepreneurship by Central and Eastern European companies protected the countries of this part of Europe during the pandemic. Eurozone countries did much worse and are recovering more slowly. What or who is responsible for this?

Polish economy recovered from the misery of the previous year in such a way that 97.2% of the state of the economy before the pandemic was reached again. President of the Polish Stock Exchange Marek Dietl said it was thanks to the unique adaptability of Polish entrepreneurs. According to Dietl, the entrepreneurs knew how to make clever use of state aid, among other things. Industrial production in Poland in December 2020 actually rose by 11.2% compared to the previous year.1)Dietl – Euro nie zdało egzaminu, Puls Biznesu 2020-02-12.The fact is: Poland’s export surplus is increasing. Fact is: the Czech Republic has the lowest unemployment in the EU at the moment. Fact is: the country’s own currency limits potential trade deficits. During the same period, the Eurozone economy, which is 10 times larger than Poland’s, only recovered to 93.2% of its pre-Covid state (after all, judging by the figures, you would never guess how much larger the Eurozone is than Poland).

It has long been common knowledge that the euro favours Germany and France and disadvantages the countries of Southern Europe. The hard data after the (hopefully) worst waves of the pandemic confirm this: the recession in Spain and Greece is expressed in double-digit figures and GDP in these countries fell by almost 10% in 2020.2)Corona-Rezession trifft europäische Staaten unterschiedlich hart, GTAI.One must not blame everything on the tourist industry. If the central banks of Southern Europe had their own currency, they could have devalued it sharply during the Corona crisis to make their economies, products and services more competitive. While Orbán’s Hungary so hated by Brussels and Poland were supposed to be the countries of EU’s second speed, they overtook the eurozone countries. Perhaps that is where the massive criticism against Kaczyński and Orbán in the qualitative media of Western Europe comes from? Look at them! They are destroying democracy in their countries! It should rather be: Look at yourselves, dear managers and decision-makers! You can learn something from them, after all. Or to put it in very few words, in brutal economic terms: those who make their fiat currency increasingly worthless must bear the consequences. Full stop.

And not just in economic terms: Was the EU able to withstand and provide effective help in the first wave of the disease in Northern Italy? No, it was the Russians and the Chinese who were the first to send the Italians their planes with the necessary means. Did Ulrike von der Leyen assert herself on the subject of procurement with vaccines? Rather not. She is even described by the Brussels leading medium as a “very damaged leader”.3)Vielleicht waren wir uns zu sicher, Süddeutsche Zeitung 2021-02-10.

Does Brussels really care much that we all stay healthy and that our economies function well?

References   [ + ]

1. Dietl – Euro nie zdało egzaminu, Puls Biznesu 2020-02-12.
2. Corona-Rezession trifft europäische Staaten unterschiedlich hart, GTAI.
3. Vielleicht waren wir uns zu sicher, Süddeutsche Zeitung 2021-02-10.

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