Can Germany be a model for Europe? Some thoughts about Germany's role in the European crisis

The euro crisis has been smouldering for two years now and has now come to a head with rumours about Greece’s departure from the euro zone which would turn it into a full-blown European crisis. The possibility that Europe will disintegrate can no longer be ruled out. Signs of disintegration inherently take on a momentum of their own and may no longer be controllable in the near future. Doing away with Schengen, for example, already received a lot of attention in the French presidential elections; a ʺrunʺ on Greek banks is evidently already underway. If it grows, it is unlikely that ripple effects on Italy or Spain can be prevented. The EU is currently experiencing the largest crisis in its history: a debt crisis, a bank crisis, a crisis of legitimacy but first and foremost, a crisis of confidence! Rarely has the homey nation state appeared as much of a refuge for safety and security as it does today!

EU as an influential international actor

In light of these kinds of developments, it seems almost futile to contemplate – as the Heinrich Böll Foundation did last year, publishing the results in a study – how the EU can become an influential international actor both in pursuing its widely recognised self-interest as well as to defend European values such as the rule of law, human rights and democracy in a world increasingly intent on protecting its interests that is dominated by the major powers.

As nice as it sounds for Europe to stand united in this world and function as a unit, this is often far removed from reality, not just in terms of foreign policy and security-related decisions (see e.g. the discord in Europe regarding military deployment in Libya) but also in terms of trade or energy policy interests. Germany in particular is often accused of going it alone mainly with China and Russia.

Germany’s ambiguous role

Germany’s role in Europe has truly become ambiguous as of late: on the one hand, Germany appears to be detaching from Europe; it is, at any rate, renegotiating its position within the EU. The power structure within the EU has shifted in favour of Germany as a result of the Euro crisis – which doesn’t necessarily do Germany any good. German dominance in decisions about economic policies within the euro zone has weakened, among other things, European institutions, for example, with the fiscal pact. This has not encouraged European cohesion, on the contrary: this led to Germany acquiring a reputation as a ʺwhip-crackerʺ that imposes its convictions about economic policy on the other EU countries.

On the other hand, it is now argued, Germany appears to have ambitions to play a role among the new BRIC powers. Germany is thus orienting itself to the east and attempting to reposition itself globally. The question arises as to what extent this is consistent with Germany’s leadership role within Europe or whether Germany risks being split between the political necessity of Europe and its global economic interests. It may sound like a promising dual strategy of pursuing European integration and, at the same time, not foregoing a global strategy. But it could also bog down Germany because the focus is unclear and energies are not bundled.

For Europe, it would make sense to bring together Germany’s economic power and Europe’s political weight. This is not possible if competition for trade and services as well as for energy and resources is encouraged within the EU. Trade deficits are also not measured between Ohio and California or between the German Länder of Saarland and Hesse. Economic integration and thus political power can only be successful if Europe, more precisely, the euro zone is considered a single coherent national economy where its potential is jointly exploited. This would include the introduction of euro bonds and a tax on financial transactions to generate the EU's own resources; also the creation of a feeling of solidarity within Europe that would make it possible to differentiate not between economically strong and weak nations (Germany vs. Greece) but between economically strong and weak regions (Tuscany vs. Mecklenburg West Pomerania). European unemployment insurance, for example, could be this kind of instrument which would also help shape the identity of Europe’s citizens.

A feeling of European solidarity

These goals can only be accomplished if the political core of Europe, Germany in particular, is committed to achieving them – together with France. Whether or not this kind of new spirit can emerge between the newly elected French president François Hollande and Angela Merkel for a truly united and strong Europe or whether disintegration and renationalisation tendencies will grow is precisely the historical question.

It is, however, clear that if the economic unity of Europe is not successful through renewed euro governance, a European economic government, Europe’s international political power and its ability to assert itself will fall by the wayside to the detriment of all of the countries in Europe as well as Germany.
Germany: responsible for the failure of the euro?

Even though people will remember the economic corruption in Greece if Europe falls apart, the actual blame for the failure of the euro will most likely be attributed to Germany in the history books. As the saying goes, a fish always stinks from the head down. The EU’s centre of power was and is Germany, today more than ever before. If Germany hadn’t just wanted to rescue Europe with courage and energy but also to take on a global leadership role with a strategic vision, the impetus and energy for this would have had to come from Berlin in a different and much more consistent form than has been seen over the last two years. This would have included more economic generosity toward Greece and other southern European countries and a bit less political dogmatism. Maybe this is still possible. But time is running very, very short!

--
 
Ulrike Guérot, European Council on Foreign Relations

Dossier

Europe’s common future. Ways out of the crisis

The EU not only finds itself in a debt crisis, it is also faces both a crisis of confidence and of democracy. Now is the time for a broadly based public debate on alternative proposals for the future of Europe. We would like to contribute to the debate with this dossier. 

• To Dossier