I just read that German banking customers have been showing a preference towards Euro notes based on origin of issue, and exchanging those notes originating from Italy, Spain, Greece and Portugal, with those from Germany. (Thanks, Turgut!)
People clearly suspect that southern notes may lose value in a crisis,
or if the eurozone breaks apart. This is what happened in the US in the
Jackson era of the 1840s when dollar notes from different regions
traded at different values.
There is criticism of comments from Italian, Spanish,
and French politicians that threaten the independence of the ECB,
viewed as sacrosanct in Germany.
But the key
concern appears to be price stability. Germany’s wholesale inflation
rate reached 8.1pc in May, the highest level in 26 years.
This news story, against the backdrop of Euro 2008 Football Championship (and Turkey’s fantastic last 15-minute comeback against the Czech Republic!), is as entertaining as it is incredible. Especially, the last sentence:
Many have kept a stash of D-Marks hidden in mattresses to this day. A
recent IPOS poll showed that 59pc of Germany now had serious doubts
about the euro.