AbstractAccess to the domestic market is nowadays the trump card of trade diplomacy. The larger the domestic market, the more effective it is. The euro is thus the decisive pillar of the European single market. The German debt brake is incompatible with the long-term stability of the euro. For as long as it applies, full employment can never be achieved in the eurozone as a whole. Under currentfiscal policy, full employment would require unrealistically high export surpluses. A euro doomed to underemployment will collapse. Hence, the international fiscal order must also be applied among the nation states in the euroarea. Germany’s resulting obligations offer an opportunity for a German demographic renewal by aggressively encouraging the immigration of skilled workers.
Europe, the Euro and German Demographic Renewal
