“Confront, then compromise” could well become Germany’s mantra for successful negotiation at the EU. That seems to be Chancellor Angela Merkel’s purpose in demanding permanent EU crisis-resolution mechanisms, together with changes to the Lisbon Treaty.
BERLIN – “Confront, then compromise” could well become Germany’s mantra for successful European Union negotiations. Germany is willing to bail out member states in exchange for tougher fiscal austerity and a suspension of voting rights, but Chancellor Angela Merkel’s demand for permanent crisis-resolution mechanisms, together with changes to the Lisbon Treaty, and her open warning to speculators who may be jeopardizing eurozone stability, has had wide consequences.
Within Germany, Merkel’s demands have calmed the electorate, which was unhappy with the Greek bail-out. They have also silenced the Social Democrat-led opposition, which has no better alternative to offer the country. Moreover, the Chancellor’s vehemence has reminded the EU as to who really holds the cards within the Union, while at the same time providing a reasonable solution for crisis management.
When the economic crisis opened up the Pandora’s Box of the EU’s fiscal woes, Germany stepped up to the mark and helped to bail out Greece. Far from appearing a paragon of political solidarity, however, the German government’s support for Greece was marked by reluctance and reprimands, which quickly sparked fears of a member state exiting the eurozone.
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BERLIN – “Confront, then compromise” could well become Germany’s mantra for successful European Union negotiations. Germany is willing to bail out member states in exchange for tougher fiscal austerity and a suspension of voting rights, but Chancellor Angela Merkel’s demand for permanent crisis-resolution mechanisms, together with changes to the Lisbon Treaty, and her open warning to speculators who may be jeopardizing eurozone stability, has had wide consequences.
Within Germany, Merkel’s demands have calmed the electorate, which was unhappy with the Greek bail-out. They have also silenced the Social Democrat-led opposition, which has no better alternative to offer the country. Moreover, the Chancellor’s vehemence has reminded the EU as to who really holds the cards within the Union, while at the same time providing a reasonable solution for crisis management.
When the economic crisis opened up the Pandora’s Box of the EU’s fiscal woes, Germany stepped up to the mark and helped to bail out Greece. Far from appearing a paragon of political solidarity, however, the German government’s support for Greece was marked by reluctance and reprimands, which quickly sparked fears of a member state exiting the eurozone.
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To read this article from our archive, please log in or register now. After entering your email, you'll have access to two free articles every month. For unlimited access to Project Syndicate, subscribe now.