[Sephiroth]

Originally Posted by jonbxx

The Deutschmark was low at the time of the inception of the Euro due to the costs of reunification. In contrast, other currencies such as the lira and drachma were overvalued due to the incoming euro. This of course helped countries that export a lot such as Germany and hindered net importers such as the southern eurozone nations. The Deutschmark certainly wasn’t overvalued against the euro but the introduction of the new currency did help but this was due to semi-external factors. [SEPH]: I think you've worded that loosely. As in what did you mean by "inception"? Reunification occurred on 03-Oct-1990 ($1 = DM1.55). The Euro conversion rates were established based on market rates at 31-Dec-1998 ($1 = DM1.78). The change over that period was a devaluation of 15%.

On the same dateline points, the USD was worth respectively ITL1150 and ITL1750. The change over that period was a devaluation of 51%.

On that basis, the DM benefitted from the contribution made to the basket by Italy and other countries. Greece was excluded in that year.

Our representative to the fisheries committee was a certain Nigel Farage who turned up to one out of 42 meetings. Can’t be outvoted if you don’t turn up I guess.
[SEPH]: It doesn't matter who the representative was. The problem started when Spain & Portugal joined the EEC in 1986 and tipped a fragile balance.

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