The Euro is, to date, a currency that is totally against the economic interests of Spain.
Why?
Spain is not competitive with an oversized currency for its economy. To understand the evolution of the Euro I would like to talk about the interests of Germany.
Germany is a country with very large imbalances in its trade balance. What does this mean? It exports much more than it imports.
How does a country such as Germany affect an unbalanced trade balance?
Germany would have experienced deflation if it had not been thanks to the indirect support of the countries of southern Europe (deflation would have harmed their exports). The German mentality is strongly aligned with the value of austerity. However, the weaker southern European economies have allowed Germany to continue exporting high-tech machinery at an incensing pace over the last decade.
Why have the South European countries influenced so positively in Germany?
- Because they have adjusted the exports. The mere fact that Spain, Portugal or Italy use the same currency as Germany automatically devalues the currency. Why?
Because, by creating more monetary units for these countries, the currency is lower (the higher the monetary volume the lower the price per monetary unit) - In addition, the German banks gave indiscriminate private loans and companies from southern Europe. This lowered the price of the Euro (due to point one) and gradually gained political control over the countries thanks to the pressure of debt.
- In addition, German investments have been concentrated in southern Europe, since in these countries the value of money is higher because of its poor industrialization and an oversized currency.
- Their inability to adjust their monetary policies. Central banks can not decide at what pace the new currencies are issued (and hence a deficiency in adapting dynamically to external conditions).
A monetary union like the Euro is only viable in the long term through a fiscal and political union.
What is a tax union?
A complete harmonization of tax regulations throughout the common territory. This in Europe would have made the survival of all member countries viable in the long term. If all the taxes derived from the benefits were equitably distributed on the basis of the products and services produced, countries like Germany that are in a clear vantage point would have had to slow their growth to help the less competitive.
This is a translation of Lightproject's: https://steemit.com/spanish/@lightproject/es-el-euro-un-invento-aleman
I thought it might also be interesting to non-Spanish speakers.
Please, let me know if you find any errors.