Has the Euro damaged the German economy since its introduction as the new currency?

Question

Has the Euro damaged the German economy since its introduction as the new currency?

Answer 1

Not at all!

Answer 2

Yes, it has, quite a bit in fact.

The problem is that with when the Euro came, the incomes were adjusted. However, the prices in most stores where not.

1 Euro ~ 1.80DM

So if you earned 1800DM before, you are getting 1000 Euro now. But the goods are more expensive, example: bread before 3DM, now 3 Euro.

I do agree that this was a smart move to have the same currency in most of Europe, and I understand that it will take a while do adjust. However, at this time the Germans (and probably the rest of the Europeans that joined into the Euro era) are suffering quite a bit.