The main thesis in Hans-Olaf Henkel work is two varieties Euros for Europe! At the beginning of his book, it comes to politicians and managers, more precisely for fraud, embezzlement, and coup.He wants to provoke. What he has to say is that Henkel had once fought fiercely for the introduction of the euro in the industry. Now he feels guilty.
The promises about the euro are broken, the expired time of the old Euro. He called for a new currency, which must comply with national differences.To rescue it, he proposes to divide Europe into two zones. In “Club Med” countries like Greece, Italy and France, which are the “southern euro” have (or “Euro-Franc”), and in northern countries such as Germany, the Benelux countries and Scandinavia, which are then “North -Euro “(or” Euro-Mark “).
A strong euro for the North, a weak for the South. The North Country, the disciplined households would get a harder currency, while the southerners are again put in a position, to take into account inflation to its own economy.Primarily, we have no euro, which is a massive bank problem.
The financial sectors of many countries in Europe are completely oversized. Ireland, for example is threatened in regards to the solvency because the state must guarantee bloated bank balance sheets. If Ireland could not save his money houses should, then the debt problem would be manageable.German banks are currently more than 2.4 trillion euros to companies, governments, other banks lent over the world, and this is a huge risk. One can only hope that the banks have highlighted certain stores and now they are with a lot more capital than in the past.
Therefore, they can meet with a greater shock resistance. Risk premiums on bonds were before the crisis generally too low. Assumed that in a crisis, the state would collect their bank. That has been the real fault of the banks.Of course, the euro is in danger. Undoubtedly, the euro problem has to do with the different money attitudes in Europe.
The politicians must act. We need a coherent functioning financial discipline and binding for all countries in the EU.