That is true. Under the old system, the inflation rates in France and Italy were higher than that in Germany, so they were constantly getting out of kilter and becoming uncompetitive. They constantly resorted to devaluing, which brought them back to a competitive level because it reduced their costs of production in terms of foreign currencies. There is a history of France and Italy devaluing. They cannot do that when they are in the euro.
European Union Bill
Proceeding contribution from
Austin Mitchell
(Labour)
in the House of Commons on Tuesday, 25 January 2011.
It occurred during Debate on bills
and
Committee of the Whole House (HC) on European Union Bill.
About this proceeding contribution
Reference
522 c225 Session
2010-12Chamber / Committee
House of Commons chamberSubjects
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