Multiple economists have sharply criticized the demand made by AfD leader Alice Weidel for Germany to withdraw from the Euro.
Monika Schnitzer, chairwoman of the Economic Advisors Commission, told the “Handelsblatt” that she considers the idea-that Germany could return to the D-Mark or another national currency and become economically successful as it once was-to be outdated and economically incorrect. She argued that fundamental challenges like growing technological competition from China, lack of innovation, or demographic change cannot be resolved simply by changing the currency.
According to Schnitzer, establishing a new German currency would likely lead to significant appreciation. This, in turn, would make German exports more expensive and weaken the country’s competitiveness. She highlighted that the common European economic and monetary area currently represents one of Germany’s most vital locational advantages. Furthermore, the transition itself would be “painful.” Complex issues would arise regarding the currency denomination of existing bank balances, mortgages, loans, and contracts. Even the year-long process leading up to an exit would “create massive uncertainty.”
Marcel Fratzscher, president of the German Institute for Economic Research (DIW), expressed even stronger opposition. In speaking to the “Handelsblatt”, he accused Alice Weidel of demonstrating “a considerable degree of economic-political incompetence” with her Euro exit demand. Fratzscher stated that such a step would force millions of Germans into unemployment and result in substantial income losses for citizens. He called Weidel’s assertion that Germany was significantly better off before the Euro simply “false.” He predicted that a Euro exit would particularly hit the state of Saxony-Anhalt, estimating that a four-person family there could face annual income losses exceeding 6,000 euros.
