1. Group 6 Rafael Ramos Codeco Paul Yu Catherine Chien Why is Germany so Important to the Continued Use of the Euro?

2. MAIN TOPICS Overview (EU vs Germany) Trade Surplus of Germany & Complaints German Replication Germany-Europe

3. OVERVIEW (EU VS GERMANY) 2013Euro AreaGermany GDP growth rate 0.1%0.4% Inflation rate 1.5%1.6% Unemployment rate 11.9%5.25%

4. TRADE SURPLUS OF GERMANY & COMPLAINTS  Peripheral economies claims  Germany should enhance domestic demand  More expansionary fiscal policy  Changing system of wage bargaining  Germany’s unfair advantages  Why is it bad for other countries?  Valuation of Euro

5. GERMAN REPLICATION  Surplus is mostly with the rest of the world.  Surplus reflects Germany’s competitiveness.  Deflation in Eurozone is positive.

6. GERMANY -EUROPE  Germany-Europe vs Uni-Europe.  WWI, WW2---Military  Economic Strategy

7. WHAT SHOULD BE CONSIDERED?  Euro, just the first step.  No visa  No border  Uni-Nation?