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20 years of the Euro: How stable is the community's currency?

20 years after the introduction of the Euro, the biggest danger to the European single currency goes out of its core countries. Is to save the Euro? And if so, at what price?

1. In January 1999, the Euro was introduced as book money - after 20 years, the European common currency is under heavy attack. Once again. It was in the crisis of the Euro from the year 2010 in the first line of peripheral countries such as Greece, Portugal and Ireland, which the stability in the Eurozone is threatened, it is now the core States such as France and Italy.

"yellow West" propagate "Frexit"

the "yellow West" France will keep for weeks in suspense. On the infinitely long list of their claims of the "Frexit", the withdrawal of France from the EU and the Euro, far above.

if you Were in the "yellow West", France would leave the Euro-zone

In the hope to save his political skin, has the President of France, Emmanuel Macron made the "yellow West" before Christmas significant concessions. The increase in the minimum wage, tax relief for pensioners and other social measures to beat, however, with around ten billion euros.

confidence in the Euro zone shaken

France threatens to breach the EU's debt ceiling of 3.0 percent. For Ifo chief Clemens Fuest, that would be a "severe blow" against the European fiscal compact. Confidence in the Eurozone will continue to be shaken.

In this respect, had done in Italy to 2018 already a bit of a "preparatory work". The highly-indebted Mediterranean country-which had been broken in the past year, a protracted budget dispute with the EU from the fence.

More social spending to the rescue of the Euro?

Italy draws, supporters of the Euro to breathe

Nevertheless, An excessive deficit procedure could be avoided in the December just. An important stage victory for the supporters of the Euro. An escalation in the debt dispute with Italy had given the right-wing populists and opponents of the Euro in Europe a further boost.

However, rising social expenditures are really the medium of choice to appease these groups? The renowned asset Manager Jens Ehrhardt thinks, at least: "in order to save the Euro and social unrest in Europe avoid, so you have to make fiscal policy the groundwork in Europe for Expansion."

No buffer for future crises

However, if one wants to save the Euro, in the light of a 2019 expected slowdown in the world economy, not only the governments of the EU countries and the EU Commission, but also the European Central Bank.

The ECB has maneuvered himself, however, by long-lasting low-interest-rate policy in a situation in which you can in a crisis difficult. The guiding principle for the supply of the commercial banks in the Euro zone with money since March, 2016 at a record low of 0.0 percent.

Can't reduce interest rates further, ECB chief Mario Draghi

Quite different is the US Central Bank: it has the net interest margin increased recently in December, to 2.25 to 2.5 percent. In case of emergency, so Fed Chairman Jerome Powell to the Fullest and with an aggressive reduction in interest rates can absorb an economic downturn. ECB chief Mario Draghi are bound, however, the hands.

2019 - not a good year for Germany and the Euro?

The means for the growth in the Euro-zone can't be Good. A further deterioration in world trade as a result of the Brexits and the trade dispute with the United States with China, the Euro-core country, Germany would be the most affected.

export world champion Germany is in trouble

The export ratio in Germany is around three times as high as in the United States, Japan, and China. Weaker exports to the Euro-crisis countries, France and Italy, but also to the UK and China are likely to meet on the German economy - and right-wing populist currents give a boost to.

Lurks the biggest danger for the Euro, 20 years after its introduction, do not end up in Italy or France, but in Germany?

source: boerse.ard.de Horror-the stock market year on a conciliatory note, 28.12.2018 the joys and sorrows of a strong Euro, 22.01.2018 What if the D-Mark would come back?, 06.09.2017 Atlas |Germany |Frankfurt am Main Horror-the stock market year on a conciliatory note, the "core now Threatens to melt"? Dell celebrates its stock market Comeback

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