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Anton Börner, head of Germany’s BGA organization, said that German exporters can “live without the euro”. BGA represents mostly small and medium sizes companies.  Börner’s alternative for the current euro framework is a bloc of the richer euro-zone countries.

This statement is quite surprising. The Deutschmark would be of a much higher value if it weren’t for the euro. Until 2005, Germany was considered to be “the sick man of Europe”.

Börner is aware of the competitiveness problem, but still says that it can be overcome. His main point about “no need for the euro is this:

“What is important for us is the free market, we do not necessarily need a common currency,” he told the foreign press association in Berlin. “Is there life for Germany after the euro? Yes there is.” Exporters “can live without the euro,” he added.

EUR/USD is diving today on the free fall of Italian bonds. It is currently trading between 1.36 and 1.3650. Italian bond yields are above 7%, and there are rumors that the ECB might finally gear up its efforts to lower Italian yields.

This could into a full scale QE operation, and further weaken the common currency.

H/T  Jean-Pierre Chevallier for this news.