One currency, several degrees of competitiveness

摘要

Unless economic recovery occurs, there is a high possibility that a currency war will be instigated. The euro is considered to be a fundamental contributor to the export success of sixteen Member States. Change in currency value is only one of the two factors affecting the price of exports; the other factor, and arguably the one that affects export prices in a more overarching manner, is the cost of production. However, to maintain a competitive advantage against the growing competition of Asian countries, Europe must find a way to facilitate innovation and thus produce high-tech products for the export market.