Why Germany will eventually leave the euro: Schroders CIO

Watching events unfold in euroland is like watching a slow motion train wreck. There is a ghastly inevitability to what is happening even if it could all have been so different. The inevitability comes quite simply from the maths and German insistence on austerity everywhere coupled with its unwillingness to contemplate stimulating its own economy. What’s the Maths? In the last decade there has been a dramatic loss of competitiveness in the PIIGS (Portugal, Italy, Ireland, Greece and Spain).  Whether you look at real effective exchange rates or unit labour costs there has been around a...