The survival of the Eurozone depends upon the balance between the recognition that European polities have to comprise to maintain political stability and the pressures on those polities from the economic stresses caused by the political compromise that the Eurozone represents. If Germany is undervalued then its partners must on average be overvalued, and adjustment to overvaluations in France, Italy and Spain can be painful, as it can only come by having lower inflation that in Germany. None of these countries has a particularly flexible labour market. Unemployment will for a period be higher than otherwise in these countries, and real wage growth will be slower. The current cconomic stresses seem rather high in these countries, and they could go on for some years. This in turn may lead to political threats to the Eurozone, and also to the liberal democracy that has been essential for maintaining the longest period of peace in Europe since the 17th century. As these threats rise, Many people in Europe consider that what has happened so far is better than having their countries invaded by the Germans again, and they are sure if the German polity wishes to control their mineral and industrial assets again they will pay In cash to do so. The balance of advantages may be changing, and a new compromise may be needed, with Germany taking the lead in this. The scale of relative overvaluation depends upon what one judges the private sector structural surplus to be, and in our non-Ricardian world on on the scale of government surpluses. Changing the German public sector surplus would be an obvious step to take to maintain stability and democracy.