August 4, 2011
The current crisis made it obvious that Germany is Europe’s strong man.
This is a shift in the balance of power in Europe. One of the biggest which has further consequences.
From the falling down of the Berlin Wall, there came a period when no one was in a dominant role in Europe.
Russia and the US had withdrawn in the first part of the ninieties, then the US had clawed back itself in the form of NATO extension.
Germany was pulled back by its domestic difficulties as it managed the reunification.
The post world war political leaders has pledged to themselves that Germany would be reined by the extension and building up of a new European Union.
Creating a common money for Europe was binding all the European players to a common goal.
During this crisis did it happen that the world took the euro more seriously than Europe itself treated it.
During the crisis, only Germany escaped unscathed the crisis. (The price for international money betting by its banks and companies did not shatter any mirror).
The euro-crisis – a consequence of the world financial crisis and the debt-crisis – revealed that the structure and the logic of the European common money system could not be financed on the world financial markets.
Successful and bigger countries are no longer able to put a veil on the weaker performers’ deficiencies.
Moreover, euro does not overwrite national sovereignity – as we see it day by day in the face of the extra charges money market players put on particular countries debt and their ability to pay their incoming payments.
There is just one nation that has not been under pressure and that is Germany.
Germany is financing Europe through its money – making economy and helps maintaining the euro area’s credibility.
If the crisis reached Germany in a worse shape – e.g in the deep of structural impasse such as that shaped it in the 1990s – , I do not know who would saved the euro.
Are these Germans angels or real people?
How many times would they save Greece and other profligate countries from default?
The questions runs deeper than that.
If Germans are paying the bill, would they have a bigger say in European decisions?
How deep is their pocket and how strong is their patience to try again and again pay the bill for reckless Europeans?
German Chancellor Merkel was persuading Berlusconi of Italy to introduce cuts in Italian expenditures. Financial Times has mentioned it as a fine bit of its well-connected reporting. What happens when the status quo reached recently again prove to be less than money markets are willing to finance calmly?
What will happen if a big (or the biggest) and most able of the European countries will say that no more money should be spent on making ends meet to save the euro?
How long will be the period, when a big European country is paying the bills, but not using the leverage of powers that comes with the biggest pocket?
Anglo-Saxon journalists are always asking if the euro will be broken under the piling debts. I suspect that they are sticking to this question because they are trying to avoid a much more more obvious and logical question, which is, What happens if Germany will be the guardian guaranteeing Europe’s credibility? What power transfer would it apply in the European Union?
Will the German Chancellor be the ultimate source on important European decisions?
Will Germany become the same to the EU members that US is to the NATO members?
During these days, before our eyes, but hidden from our understanding, Germany is becoming a super-power?