Interview by Noémi Lehoczki, LeftEast, February 11, 2021.
NL: For many Hungarians Germany is a socioeconomic and political model to aspire to. In the current structure of the European Union, however, could the German model even be transposed into the context of the European periphery?
WS: Generally speaking, one should be highly suspicious of the idea that national systems can be transplanted to other countries. Each country has to find its own way to peace and prosperity. This applies in particular in the present case. Germany, highly industrialized and export-dependent, can be and is the growth and prosperity pole of the EU because its currency, the euro, is heavily undervalued, due to it being not just the German currency but also that of the entire Eurozone. While Germany has a huge export surplus, the Eurozone as a whole has an even trade balance. This is an ideal situation for a national economy whose prosperity depends on exports and therefore on a favorable exchange rate. Consider also that the European monetary union makes the markets of the other member countries effectively captive to the German economy: however high the German export surplus with, say, Italy may be, Italy cannot devalue against the German currency as it is also the Italian currency, foreclosing this path towards improving the competitiveness of Italian economy and its firms. (…)
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Also published on braveneweurope.com
The interviewed first appeared in Hungarian on the left-wing news website merce.hu