GB Letter to Times 7/9/11
Sir, I read with some concern Hans-Olaf Henkel’s article “A sceptic’s solution – a breakaway currency” (August 30). It is now more than a decade since he held office at the BDI and his views no longer coincide with those of German industry – judged by the position paper published on July 13 by the four main German employer bodies which collectively represent 8m companies and 80 per cent of workers. They said: “The euro is one of the success stories of the European integration process. To make sure it remains that way, an effective political and economic framework must be created and implemented immediately.”
Mr Henkel proposes a four-state currency; both Austria and the Netherlands matched German monetary policy for two decades pre-economic and monetary union, but the Finns may wish to comment on the assumption that they would sever their Nordic links in this way. However, the real question that is never answered by Mr Henkel and his friends is, what would happen to the European Union’s single market following such a period of disorderly currency movements?
I find it inconceivable that there would not be such a reaction from many countries that trade barriers would slam down quickly and German exporters would be the most massive losers. Has he explained this to the German workers who would lose their jobs? Perhaps that is the reason the great majority of German employers publicly state their keenness to preserve the euro!
Graham Bishop, Battle, East Sussex, UK