Why does the euro benefits germany

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Digital Be informed with the essential news and opinion. EU membership generates substantial economic benefits for Germany and the other countries.

As a result, non-member states like Switzerland and Norway have fallen into line with EU rules and contribute a substantial amount to the EU budget without having voting rights of their own. Brexit is an example of what could be at stake, even just economically, if close EU connections were to break down. Cooperation leads to a process of give and take, resulting in benefits for all: nations who focus on exports, like Germany, specifically benefit from free trade, others benefit from capital inflow or economic aid.

Democracy, human rights, the social market economy, free movement of workers, and consumer and environmental protection all add up to ensure a high quality of life and individual development opportunities in Europe. The most important aspect, however, is the preservation of peace. As constitutional democracies, the member states are obliged to protect freedoms and human rights, and to jointly preserve peace. In a world in which 40 per cent of all nations are still ruled by dictatorships, and wars result in millions of deaths and refugees, this kind of community of stability and shared values is a valuable asset.

Against the backdrop of two devastating wars in the past years, we must never allow ourselves to forget this. Even without the United Kingdom, the EU will remain the second largest trade bloc economy in the world with a gross domestic product of over 13 trillion euros.

It prevents duties and other barriers from economically fragmenting Europe. Uniform rules ensure fair competition between European businesses. This reduces the costs and risks of trade and investments. The EU is a community of solidarity.

The EU budget provides financial aid to weaker regions for expanding competitive structures and improving the quality of life locally. In the current funding period until , the member states are providing over billion euros from European structural and investment funds for this purpose. Germany also benefits from this.

The EU acts as a stable community. By Reuters Staff. The single market seeks to guarantee free movement of goods, capital, services and labor across the nation EU. It found that each German was on average 1, euros richer as a result of single market membership, while on average EU citizens were only euros richer.