Norris on why Germany should leave the euro

GERMANY SHOULD EXIT EURO

Barry Norris, manager of the £348m Argonaut European Alpha fund, argues Germany should leave the euro or accept fiscal union.

With yields on Spanish and Italian 10-year government debt now above 6%, it is now the moment of truth for the euro. Neither the Spanish nor the Italian economies can sustain these rates of interest and their economies are too big to be 'rescued' by bailout funds. If, like in the UK, the Spanish and Italians had their own currency, they would devalue, boosting short-term competitiveness and economic growth. Their central banks would also be able to erode the value of debt through printing more money via quantitative easing in the same way as the Bank of England has done in the UK. The...