Infineon CFO Contemplates Euro-Zone Break-Up
Interesting to hear European industrialists speculating on the break-up of the eurozone. How recently would that have been unthinkable?
Infineon CFO Dominik Asam told the German newspaper Boersen-Zeitung this week that his concern was that an appreciation of the value of the local currency following a break-up of the eurozone could be bad for German exports.
I suppose the corollary of that is that Germany could reduce the cost of its exports by letting the ECB print money.
Presumably the Germans have done the maths and calculated that the inflationary risk is greater to them than the risk to their exports.
It makes you realise that, in countries like Greece and Spain, it must be daunting to set up a business which is in competition for local markets with a German company using a common currency.
The solution, as proposed this time last year, is to split the euro.
The ‘S’ (for Serious) Euro for countries like Germany, Holland, Scandinavia etc where people take life seriously, work hard, make careers, bring up their families responsibly and plan for the future.
And the ‘F’ (for Fiesta) Euro for countries where the attitude is enjoy today, have another drink, it’s party-time, don’t take things seriously, don’t work too hard, have a mistress or two, pensions at 45, debt as high as you like, life is a cabaret old chum.