The Deutsche Mark may be back in print if a recent prediction by Dr Pippa Malmgren, President of Principalis Asset Management, is anything to go by.
This news will do little to please Angela Merkel, the German Chancellor, who is publicly saying we should not be talking negatively about the European financial crisis.
So, if Dr Malmgren’s prediction is correct, then one of two things can be deduced; firstly Merkel is keeping a very close secret or she is unaware of any provision or plan to re-introduce the Deutsche Mark, so I suppose the former is the more likely scenario.
Any reintroduction of the Deutsche Mark would of course mean abandoning the Euro and that would not be good news for the European Union seeing as the region’s golden goose, Germany, would now be laying free range, economic protectionist eggs.
It would spell the end of the EU experiment and the Euro, so to keep Germany on board there will need to be huge offer on the table to appease the German people.
Such an offer might involve carving up assets of the indebted PIIGS, but that is highly unlikely considering the level of public animosity towards the European Union from these member states who are slowly beginning to realise the EU could hold them in debt slavery for years to come. Whereas in the case of Greece, a re-introduction of the Drachma and a hard, disorderly default is the only real option left.
Oh! By the way, it looks like anywhere between 50% and 70% (depending on which poll you go with) of Germans want to see the Deutsche Mark reintroduced.
However one must not forget the words of Jean-Claude Trichet, who is the president of the European Central Bank. Tritchet spoke out back in September in an angry outburst against the German supporters of a return to the Deutsche Mark saying:
“I would very much like to hear the congratulations for an institution that has delivered price stability in Germany for almost 13 years,”
“we decided very frequently not to do things that were recommended by various governments”
The man is clearly a lover of democracy *cough*, and they wonder why some journalists and commentators refer to the European Union as having a religious like observance by it’s proponents.