Germany is the enigma of Europe. A great,
central power, economically dominant in the continent. Striding forward with
its ‘modern’ economic plans, with a hint of I-told-you-so sneer at the
catastrophic borrowing policies enacted by the Southern European countries,
Germany could be seen to have never been so great since the time of
you-know-who. And yet, humbled by its turbulent past role in 
Europe’s affairs,
Germany also seems reluctant to flaunt its wealth, instead choosing a path of
peace and prosperity with the EU. In contrast, Britain, the so-called ‘defender
of Europe’, has been plagued by anti-Europe referenda and the rise of the UKIP
party amid nationalistic fervor in recent years. Sounds hypocritical to me. However,
Germany’s adoption of a friendly Europe, in which it is nonetheless the
dominant power, has left it in a pickle. The German transition in Europe’s
hierarchy of power and economic wealth in recent years is known only too well
by the ennui-burdened politicians of the continent. And it is this transition,
from the ‘sick man of Europe’, which forces Germany now to act responsibly in
accordance with the EU it so rigorously upholds. Germany’s current position
under Angela Merkel: force the debt-ridden governments to enact brutal
austerity measures, in exchange for the writing off of debt. But this is not a tenable solution. Undemocratic governments,
loathed by the peoples of Greece and Spain, will collapse. Further debts will
default. The people certainly have the right to be angry – after all, they did
not manage their economies in such a way which left them facing disaster – but
nevertheless, the looming pension crisis will create further critical debt
which threatens to ‘undevelop’ the entire region. The current generation will
not – cannot – compromise; and the next will bear the brunt.
Whether or not there is irony in these fatal
economic processes occurring against the backdrop of a successful, mega-rich
international economic organization (the EU) is not the point that Germany must
consider. For the real quagmire in which the country is trapped is far more
severe. Ending European hegemony over each nation, with countries returning to
their original currencies, is out of the question. Not to mention the extreme
devastation this would likely cause to reliant PIIGS economies, as well as the
huge damage to trade if the Euro were to collapse, it is simply an impossible
position for Germany to occupy, as it is the glue sticking the Eurozone
together. But neither can Germany
sit tight and hope for the best. Austerity until debt is no longer a feature of
life, is simply not possible. If just one country rejects this
state-of-affairs, the whole economic region will be brought down. And so, what
is Germany to do?
The
fact is, there isn’t an easy option. That is why, certainly from a British or
Cameron perspective, Germany and Merkel are so frustratingly idle. Of course
Cameron wants a rebate on Britain’s position on the EU! He sees it as an organization
in terminal decline. And perhaps he will be right. Unless Germany adopts a
third way; a light for the rest of Europe to follow. A complete reform of the
European; the global financial system to allow stable economies. What this
reform will entail, and how it will be achieved, remains unclear. But certainly
it seems a better prospect than Germany’s current options – sitting on its
current, doomed austerity trajectory, or the unthinkable – breaking up the
single currency.
Thucydides - out.
