'Split the eurozone into rich and poor'

11 January 2017 - 10:45 By Reuters
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The eurozone should be split into two with a strong cluster around Germany and a weak cluster including France, the co-leader of Germany's far-right Alternative for Germany (AfD) party Jörg Meuthen said.

"The euro is a seed of discord in Europe that has different currency cultures and different competitiveness levels," Meuthen said.

The AfD was set up in 2013 at the height of the eurozone debt crisis on an anti-euro platform but since ousting its founders in 2015, the party has climbed to about 15% in opinion polls by focusing on an anti-immigrant agenda.

Meuthen, widely seen as a moderate in the AfD which represents a wide range of views, said the German economy could suffer in the wake of such a eurozone split but only for a year or two.

"The euro is too strong for southern European countries while for Germany and several others it's too weak," he said.

"It's conceivable that the weaker countries leave," he said, mentioning Italy, Spain, Portugal and France. He said Greece is so weak that no country wants to share a currency with it.

Germany, Austria, the Netherlands and Finland should remain in the core euro group, he said, even though a stronger currency would hurt exports from those countries.

"That could cause an economic slump [in Germany]," he said.

"It's impossible to say how deep. But in my view the economic slump would be over in about a year or two."

Meuthen distanced himself from a proposal by France's far-right leader Marine Le Pen who has said France should leave the euro but shift to a new national currency accompanied by a framework similar to the pre-euro era of the ECU.

Anti-establishment parties in other European countries, such as Italy's 5-Star Movement, have also indicated a desire to leave the euro.

Meuthen's comments riled some of his party colleagues. Alice Weidel, an AfD board member, said the euro had a faulty design.

"There is no benefit in dividing the eurozone into north and south because that does not solve the fundamental problem.

"The only solution is for Germany to leave the eurozone," she said, adding this was part of the AfD's basic programme.

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