Euro Area

[gaelic cowboy]

Germany leaving would give the rest a more competitive currency valuation and a more appropriate interest rate, and germany is the only country that can leave without having to enforce money controls as capital would flee any other country trying to exit the Euro, and that would knacker the single market.

It probably would not be neccessary to devalue IF Germany left as the new German Mark would likely appreciate on world markets, that might not be such a good thing for German exporters to have a strong Mark.

Germany if it continues to save can use the PIIGS as effectively a dumping ground for excess capital keeping it's competitiveness with other exporters by preventing consumption growth in the economy.

The reality is of course German tax payers are not likely to want to continue to want to save just to fund the dole in Ireland to help Mercedes sell cars in China.