[sgt101]

If the Euro was a currency backed by the economies of Germany, Holland and Denmark it would be valued much more highly than it is now. Because of this these economies have a relative competitive advantage compared to other similar economies.

If the Euro was part of a federal system with federal transfers - like the US$ then this advantage would be mitigated because the budget positions of the rich parts of the EU would be relatively weaker (due to transfers) and the periphery of the EU would have stronger fiscal positions.

>In my opinion that is a good thing, because stealing money from the people by devaluating their assets through artificial exchange rates is not the right solution for solving international commerce imbalances.

Fair opinion - but what is the solution? Do you agree that federalisation with fiscal transfer would be correct?