Germany Is Euro's Biggest Threat

Prior to the introduction of the euro, European economies running big trade deficits routinely devalued their currencies against the Deutschmark and other currencies tied to it. This prompted allegations of beggar-thy-neighbor activity and even calls for protectionism.

One of the key arguments for the euro was that it would put an end to these so-called “competitive devaluations,” opening the way for a deepening of the European Union’s single market and improved economic growth.