Euro crisis: Is a temporary introduction of a parallel currency a solution for the troubled states?

The euro and financial crisis is calling into question the very existence of the European Monetary Union. Dirk Meyer, Helmut Schmidt University Hamburg, sees the introduction of temporary parallel national currencies as one way for the weaker euro countries to respond in a timely manner to weaknesses in their economies while simultaneously remaining in the EMU. For Michael Vogelsang, Federal Association of Medium-Sized Enterprises, the main argument for a dual currency is the opportunity for currency depreciation under flexible exchange rates. A temporary or permanent introduction of a parallel currency – in addition to a European currency (euro) – in which for example salaries, pensions, state benefits and real estate can be assessed and that would be subject to an exchange rate regulatory mechanism could, in the opinion of Anton Beer, www.rettet initiative-the-eu.de, as well as André ten Dam, help restore the competitiveness of weaker euro countries.