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For me the question about Merkel is whether she could rise above her present self interest and the German national interest in continuing to support the current tight money policy for the ECB and move towards a system that better serves the interests of the weaker economies on the periphery. I cannot see the problems created by the current management of the Euro and the Euro-Zone going away except by further integration.

If she could support Euro-Zone wide retirement and health care so retirees in the north could retire in the south and support the funding to bring southern medical and social infrastructure up to northern standards this could be a way for all of Europe to prosper. It would also short circuit the current centrifugal forces that are tending to blow the EU apart.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Jun 27th, 2019 at 03:27:06 AM EST
At the moment ECB monetary policy, with near zero interest rates and after a massive programme of Quantitative Easing couldn't be much looser. The fear is that current ECB President Draghi could be replaced by a much tighter monetarist like Jens Weidmann, the German nominee. However the nomination of Merkel for Commission President would have the beneficial side effect have putting any German nominee for another top EU position out of the running - given that the top positions have to be shared out among various member states.

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by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Thu Jun 27th, 2019 at 08:32:32 AM EST
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Loose monetary policy is really only a band-aid. What is needed is deeper integration and recycling of surpluses from some countries to those countries with deficits.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Jun 27th, 2019 at 08:43:24 PM EST
[ Parent ]
Yep - its like pushing on a string. But recycling of surpluses from surplus countries to deficit countries isn't going to happen to a significant degree while the main locus of power is at the nation state level. That's partly what Brexit (and other right wing nationalist movements) is a rebellion against - preventing a small part of the UK's surplus  being used to help deficit countries - even though the UK's overall economy is much enhanced by having access to deficit country markets...

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Thu Jun 27th, 2019 at 10:24:11 PM EST
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