I could not have explained it any better:

Jack Worthington's Social & Investment Commentaries

Eurozone’s Fundamental Problems and EU Politics

More on this issue because in my view, fundamental problems in the Eurozone are a key reason for the nationalist Euroskeptic victories in the recent EU elections and pose an existential threat to the Eurozone project…and rightfully so.

This is written in the hope that the average non-financial person in Ukraine and other potential EU entrants can better understand the Eurozone and make informed decisions.

Currency Union:

By combining the relative strength of the Deutsche Mark with the relative weakness of Southern European currencies, the resulting Euro is weaker than the previous Deutsche Mark, and stronger than the previous Lira, Franc, Peseta, et al.

The Result:

  1. The fundamental strength of the Deutsche Mark is watered down, and German exports are more price competitive on world markets, and Southern European exports are less so.
  2. Albeit not a Debt Union…implied but not assured:  The stronger national…

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