The Long Shadow of Ordoliberalism
In its attempts to rescue the euro, Germany is often seen as the odd country out. However, what is seldom understood abroad is that the German position is about more than limiting its own fiscal exposure.
In its attempts to rescue the euro, Germany is often seen as the odd country out. However, what is seldom understood abroad is that the German position is about more than limiting its own fiscal exposure.
The British debate on Germany and the euro should focus on understanding Merkel's technocratic ideas without invoking Hitler and the Second World War. The best way to get Germany to abandon its counterproductive economic reforms is to talk about a compelling European future, rather than dwelling on the past.
The elitist and technocractic nature of German politics means that the case for European integration is not being made to the German people. Worryingly this is also giving an opportunity for anti-EU populists to gain influence.
Two myths about a Greek exit from the euro have recently gained traction. Both are misguided and both are extremely dangerous. Here are the reasons why.
Hollande and Merkel should launch an ambitious EU reform programme
Europe’s relationship with Beijing will largely be determined by the emerging “special relationship” between China and Germany. However, the rest of Europe must find ways to help Germany be a good European in its relationship with China – or risk being cut out of the loop.
Since the beginning of the euro crisis, there has been much discussion of actual or potential German “hegemony” in Europe. But Germany's self-centeredness and short-term thinking disqualify it as a hegemon.
Citizens across Europe are being asked to replace politics and economics with a sheer act of faith in austerity. But it's clear that they are starting to feel the need to stop this nonsense, and European leaders need to take this seriously.
The prospect of a victory by François Hollande may be causing nervousness in Berlin and elsewhere, but the socialist candidate in the French presidential elections is a natural compromise-builder, and Europe should have no real reason to fear his victory.
Understanding how Berlin thinks is now more important than ever. If EU leaders want Angela Merkel to listen to calls for growth, they first need to understand her economic mindset which is deeply rooted in a concept known as 'ordoliberalism'.