IS IT? IS ....The idea that the euro was solely invented by then-French President François Mitterrand to "control" Germany is an oversimplification of a complex historical and political compromise.

 

The idea that the euro was solely invented by then-French President François Mitterrand to "control" Germany is an oversimplification of a complex historical and political compromise.

The push for a single European currency was a long-standing goal of European integration, dating back to the 1970s, with both economic and political motivations.

 

The Role of Mitterrand and German Reunification

Mitterrand and German Chancellor Helmut Kohl were key architects of the Maastricht Treaty (1992), which established the European Union and paved the way for the euro. The sudden prospect of German reunification in 1989 significantly accelerated the process and provided a crucial political context.

French Concerns: Mitterrand and other European leaders were concerned that a newly unified and economically powerful Germany, with its strong Deutsche Mark, would disrupt the balance of power in Europe and dominate the continent economically. Mitterrand reportedly told UK Prime Minister Margaret Thatcher that "without a common currency we are all already subordinate to the Germans' will".

The Compromise: The euro became part of a political trade-off. Germany agreed to give up its powerful national currency in exchange for French and broader European acceptance of German reunification. In this sense, the euro was a mechanism to bind a unified Germany more deeply into a common European framework, assuaging fears of a newly dominant German state.

 

A Franco-German Project, Not a Solo Invention

While Mitterrand was a primary driver for monetary union as a political lever, the euro was not his "invention" alone, nor was it solely designed to control Germany.

Shared Leadership: German Chancellor Helmut Kohl was also a strong proponent of European integration and the euro, seeing it as essential for peace and stability.

Economic vs. Political Aims: The project involved a compromise between French (and others') desire for a political union that would counterbalance German power and the German emphasis on an independent central bank focused on price stability (modeling the strong German central bank). Germany largely succeeded in shaping the design of the European Central Bank (ECB) and its strict stability-focused mandate.

In reality, the euro was an ambitious political project designed to foster deeper European integration and stability, not an instrument for one nation to control another. Its creation involved complex negotiations and a grand political bargain between France and Germany at a pivotal moment in European history.