Europe: Elections Could Undermine The Euro And German Automakers | Forbes
U.S. President Donald Trump has said the European Union is really a vehicle for Germany, but this advantage might run off a cliff if elections this year favor Brexit-style politicians who could destroy the euro and severely damage the German auto industry, at least in the short-term. In an interview with The Times of London before the inauguration, Trump dismissed the E.U. as a “vehicle for Germany.” German industry in general and the automotive industry in particular benefited hugely from the adoption of the euro single currency in 2002. Before the euro, Germany’s auto industry was forced to price its products in ever stronger deutschmarks. But the adoption of the euro gave it a huge competitive boost as the currency is weakened by much less efficient competitors within the eurozone. This would come to an end if the euro currency system collapsed.