OZY+GRI: Will the powerful German economy break up the EU?

OZY+GRI: Will the powerful German economy break up the EU?

GRI is pleased to present a new collaboration with innovative news provider OZY. We’re kicking things off with a series of five articles by Senior Analyst Jeffrey Moore, looking at Black Swan events.

Nearly 70 years ago, six countries — Belgium, France, Germany, Italy, Luxembourg and the Netherlands — started a grand experiment to secure a lasting peace following two world wars that had erupted in the heart of Europe. The European Coal and Steel Community was established in 1950 as a first step in integrating the continent economically and politically into what would eventually become the European Union.

Thirty years later, the genesis of the single market came as a growing union began sorting out the free flow of goods across national borders. Then, in 1985, the Schengen Agreement all but abolished internal border checks.

All the while, Germany was reasserting its European hegemony, but this time with economic dominance, not military might. It went on to become the EU’s economic powerhouse and, in 1999, with the introduction of the euro as a single currency, commenced its finishing touches on a masterpiece decades in the making.

But is there such a thing as too much success?

It may not be a far-fetched scenario. Germany’s trade surplus is viewed with resentment across the EU due to the implied — and in some cases, tangible — economic imbalance that benefits Germany to the detriment of others, and could lead to the dissolution of Europe’s grand experiment.

Read the full article on OZY here, and be sure to keep an eye out for the next one.

About Author

Jeffrey Moore

Jeff Moore is a Senior Analyst with Global Risk Insights, and Founder & Owner of Moore Insight Inc., a political risk consultancy helping high net worth clients, independent asset managers, international business operators, and even political candidates add value by informed analysis of, and customized solutions for political risks to capital, business strategy, and target constituencies. His insights have been featured and sought by state, national, and international media as political risk mitigation becomes more important by the day. Previously Jeff worked as a capital reporter for traditional media, a research analyst in the N.C. Department of Commerce, and an economic policy aide in the N.C. Office of Governor. After receiving a degree in Political Science from the University of North Carolina, Jeff cut his teeth as an equity trader, successfully trading millions in capital through out the Great Financial Crisis and beyond.