Published 24/11/2011 | 05:00
•In reference to German ECB board member Juergen Stark's comments "admitting" that the debt crisis had now spread to the eurozone core (Irish Independent, November 22), I beg to differ.
The crisis began in the core countries -- it was only that the symptoms were more visible in the periphery.
The periphery was doing just fine prior to the euro, the core on the other hand was experiencing long-term economic decline, Germany only a few years ago was nicknamed "the sick man of Europe". All that has changed. The euro has kept Germany's exchange rate artificially low, much like China's, that is why both of them are such export engines now. Germany and France quite happily loaned all their excess funds to the peripheral countries so they could buy their exports.