Volker Wieland, a financial economist based in Frankfurt, has strongly refuted the comments made by AfD leader Alice Weidel concerning the Euro, calling them “completely misleading.” Wieland explained to FAZ that the European Central Bank (ECB) aims to maintain stable purchasing power throughout the Eurozone, making the notion of the currency being a “weak currency” unfounded.
The economist pointed out that the primary benchmark for price stability is the average inflation rate of approximately two percent in the Eurozone. Since the Euro’s introduction, inflation has generally stayed close to this target, occasionally falling below it, but experiencing temporary spikes following Russia’s invasion of Ukraine. Wieland noted that the AfD’s vocal opposition ignores this overall positive performance, stating that Euro criticism has been part of the party’s DNA since its founding.
Alice Weidel had recently asserted in a ZDF broadcast that the Euro had become unstable, citing the “inflationary bulge” in the ECB’s approximately six trillion Euro balance sheet. She further argued that this expansion had not only weakened the Euro but had also resulted in a significant redistribution of wealth, flowing from “the working population to the wealthy.”
Wieland conceded that wealth reallocation was a consequence of the ECB’s policy. He acknowledged that following the Euro debt crisis, the low-interest rates and massive asset purchases primarily benefited individuals who already owned real estate and financial assets, as prices rose. However, he defended the policy as a legitimate crisis measure designed to stimulate the economy within the Eurozone. Nevertheless, he supported the German government’s current efforts to enhance social fairness-such as through a capital-backed pension-to ensure more people benefit from rising housing and stock prices.
Finally, Wieland cautioned against the idea of leaving the Euro, stating that such a move would only be plausible alongside an exit from the European Union. He warned that a unilateral departure would complicate international trade, particularly because the exchange rate with key trading partners would no longer be fixed. Politically, an exit would be a disaster, in his view. He stressed that Germany gains significant international influence only when operating within the EU bloc, and a complete departure would diminish Germany’s strength, leaving it vulnerable to powers like Trump and Putin.
