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Businesses to Merkel: stick to guns on euro

The Local · 10 Jul 2012, 12:23

Published: 10 Jul 2012 12:23 GMT+02:00

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About 86 percent of business chiefs surveyed urged Merkel to stick to her guns during the eurozone crisis, despite hefty criticism from both inside and outside Europe, the Forsa poll for business daily Handelsblatt showed.

Business leaders appeared to be more pro-euro than the general population, the poll suggested, with 76 percent saying the euro should be maintained in its current form at any cost, compared to 41 percent of citizens holding this view.

There was broad optimism the crisis would be overcome, with 85 percent saying lasting solutions would be found. Nearly two-thirds of respondents (64 percent) said the effects of the crisis were not being felt in their businesses.

Nevertheless, the financial market turmoil seemed to be affecting firms slightly more than at the beginning of the year. In January, 67 percent of managers said they had not detected signs of an impact.

Forsa interviewed 641 leading business managers in Germany between June 19 and July 5 for the survey.

Merkel's euro strategy is also popular amongst German voters.

According to a poll published on Friday, her popularity is at its highest since shortly after her 2009 re-election and nearly 60 percent of Germans back her euro crisis policies.

Story continues below…


The Local (news@thelocal.de)

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Your comments about this article

14:38 July 10, 2012 by Navigator_B
It's perfectly understandable that so many managers in an export-orientated economy like Germany want to keep the Euro when the only alternative is something like a strong DM. The Euro keeps their exports artificially cheap, which is good news for them.

The flip side is that it's bad for the exporters and tourism business in other Euro countries. It's also bad for the German taxpayers who are forced take on the risk for all the bailouts to support the Euro. 

Along with the banks, the German exporters get all the benefits of keeping the Euro without having to pay for it. Maybe they'll offer to pay higher corporate tax to reduce the extra tax bill of German workers for the Euro bailouts?
15:47 July 10, 2012 by smart2012
even an i...t knows that Germany needs the Euro to be competitive...
16:54 July 10, 2012 by IchBinKönig
For Business leaders, Sovereignty is less important than the bottom line.

So nice to know that Sovereignty has a price tag.
17:55 July 10, 2012 by Peepopaapo
The German economy's competitiveness is based on several reasons, two being its highly qualified workforce and the usually high quality of the goods produced by German enterprises - for a description en détail you can have a look at the current "Global competitiveness report".

Of course the relatively low value of the Euro compared to the great strength of the Germany economy aids and abets German exports, but when you look at the history of the German economy, Germany has always been one of the leading export nations beginning with the economic development during the times of the Kaisserreich despite having a "hard" currency.
20:48 July 10, 2012 by Navigator_B
Peepopaapo, I agree, German industry would still do very well if it had a strong currency because it makes products that are not made in any other part of the world. It would mean lower profits in the short term but it might also encourage more efficiency and better products, as happened after globalisation ate into German industry's market in the 1990s.
12:30 July 11, 2012 by michael4096
International business people in all euro countries overwhelmingly support the euro not just in Germany. Apart from a few Bureau de Change owners and currency hedge fund managers etc., it makes their life much easier. Currency management is a significant admin cost.

I was reminded of this yet again just yesterday driving through Switzerland where the various Raststätte charge for the WC. You can change a chunk of money and have lots of SF left over or you can pay in euro at parity. Granted the sums for business are higher but the choices are not much more attractive.
14:44 July 11, 2012 by smart2012
@peeappepoo, why then Siemens mobile / Q cells struggled and closed (even with Euro)? i am curious to hear your answer. I think in your comments you are currently thinking of the car markets where BMW/VW/Mercedes are doing pretty well, but after having completely screwed up in early 200O's, where they were firing permanent work forces to hire temporary workers... Listen at the CEO's, do not listen at Bild
19:04 July 11, 2012 by Peepopaapo
smart2012, I am not only refering to the car producers you mentioned above (though you forgot mentioning Porsche and Audi), but also to several German engine builders or companies like the car rental service "Sixt". Furthermore the German economy as a whole is doing quite well in spite of the Euro crisis around it, especially in the South European states. This is a fact you can not deny no matter how hard you try.

Moreover it's quite funny that you take two enterprises which are (currently) not doing well (while Siemens mobile is only one branch of Siemens which - as a whole - does quite well at the moment) and try to deny the competitveness of the entire German economy, forgetting the many small and medium-sized companies which are among the so called "hidden champions" and which plan to creat more jobs in the next few months.

Best regards
21:22 July 12, 2012 by Vultch
The Euro is only a currency and has nothing to do with a countries export strength, export strength is price and performance.

I buy equipment and software from all over the world USA, India, Uk, Germany etc and it all comes down to price and features / performance.

Even if Germany still had the DM it would still sell BMW / Porsche etc etc all over the world.
19:58 July 14, 2012 by Sastry.M
The proverbial German thoroughness (gruendlichkeit), which is a way of life for the people themselves, stood to good stead in modern industrialization while the same turned out to their English cousins as great eyesore of competitive jealousy. Indeed " Made in Germany" was born in England to implore the home appeal and distinguish imported German products during Kaiser Reich. However the astute British anglo-saxon blood opted more for product merit and affordable prices their continental German cousins offered boosting their sales which, probably, hardened British U.K jealousy into political hatred of anything German.

I venture to express my above free opinions in a hopeful pardon against offense because although Germany was embargoed in mercantile trade and twice defeated militarily during the last century, the German people could pull themselves from the woods of greatest inner turmoil and place their country at the center of European Economic Hub.
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