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I don't know what Sarkozy is thinking. In May 2010 he reportedly threatened to quit the Euro right there and then if Merkel didn't play ball and managed to extract the creation of the (flawed) EFSF as a result. Since then, he's been soft like a kitten.

Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Thu Sep 8th, 2011 at 06:14:06 AM EST
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I still don't think that any of them are thinking, exactly. They're fighting for their own political survival and their legal survival after they leave power. What are the odds that an unfriendly successor government couldn't find lots of grounds to prosecute a worm like Sarko?
by Colman (colman at eurotrib.com) on Thu Sep 8th, 2011 at 06:15:19 AM EST
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That is another thing I try to explain from time to time. The current german government isn't strong, but rather quite weak. And weak governments tend to plan from day to day, in other words not at all. They don't really think about other european countries, they think about the next state election.

So I tend to protest if I read analyses of the sort, Germany is planning this and wanting that. The current isn't planing and wanting mostly negative things, like to be left alone or to kick the can down the road so that they can concentrate on the coalition crisis.

Not that policy by drift can't be harmful.

by IM on Thu Sep 8th, 2011 at 06:32:51 AM EST
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And I think this is an important reason why many Europeans, especially on the left, currently identify "German policies", or even (shudder) "Germany", as the villains in the current crisis, rather than blaming Merkel and Sarkozy, for example.

Bear with me for a minute : Merkel, who visibly doesn't have any ideas of her own on macroeconomic policy or currency governance, muddles along making non-decisions, digging her heels in stupidly, delaying then accepting the inevitable, but too late to stop the crisis getting worse... but all the while working within the framework of conventional economic wisdom in Germany.

And as Germany is the economic hegemon within the Eurozone (as largest economy, and most "virtuous", since they are on the credit side of the imbalances), German conventional wisdom, in all its majestic stupidity, is the EU orthodoxy.

It's the madness of this conventional wisdom that we must fight. You are quite right that the conventional wisdom is widely shared by economic policy makers and political elites in other countries (though we may note that the French PS has rejected the "golden rule" that the SPD embraced).

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Thu Sep 8th, 2011 at 08:29:07 AM EST
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