Euroskepticism: Germany's turn.

Eoroskepticism is gaining in Europe. That is, people are beginning to see that the EU and the Euro are weighing on the economies of Europe. Those on the Left do not want to live with the "austerity" imposed on their countries. The Left wants the governments to own the 'means of production' which implies heavy government taxation at first. The Right (or what passes for the Right these days in Europe) want to get away from Internationalism. That is why the formation of an Euroskeptic party in Germany is so significant.

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/9920666/Germanys-anti-euro-party-is-a-nasty-shock-for-Angela-Merkel.html

The "Alternative for Germany" Party is more an Euro skeptic Party than a party opposed to the EU. The Party's core consists of economists who see the Euro as a millstone. The Euro institutionalized a 30% imbalance in currency in favor of Germany. In addition, the raising of the German VAT from 16% to 19% increased this imbalance, just as Gopinath would predict. The consequence is that Southern Europe has fallen way behind the German economic machine and Eastern Europe has been impoverished. Why don't the rest of Europe follow the German example and raise the VAT? Because they are TEA parties in one sense: Taxed Enough Already.

Why would German economists want to rally against German economic supremacy? Because the debts of Southern Europe are underwritten by Germany. Should Italy default, Germany picks up the tab.

There are questions about the new party's viability, but just its existence sent shock waves through Europe:

http://en.haberler.com/german-party-says-no-to-the-euro-yes-to-the-eu-264969/