Opinion / Christopher Cermak
Pay as EU go
Back when I reported from Germany in the years of Europe’s debt crisis, I couldn’t help but feel that its economists were a bit, well, misunderstood. There was this idea from abroad that Germans were being tough on Europe for the sake of it – that they couldn’t be flexible in a crisis, didn’t care about the suffering of southern European nations and simply refused to shoulder the burden. The feeling I got from German economists was often at odds with that. There was a genuine belief that somebody had to play the bad cop to keep Europe together; a conviction that too much help now would cause further problems for the eurozone down the road.
And so, while many observers have seemed eager to cast Germany in the bad-cop role again during the coronavirus pandemic, I haven’t been surprised to see something a little different. The outbreak is nobody’s fault; there are no economic lessons to be learnt. That’s why Emmanuel Macron and Angela Merkel (both pictured) this week proposed that the European Commission be allowed to take out a one-time bond of €500bn – essentially issuing common debt for the EU. Not only that but the proposal was backed by some prominent conservative economic groups, such as the Munich-based Ifo Institute.
Germany’s government might not always move as far and as fast as other countries would like. But judging it as self-absorbed or miserly, as some critics would have it, is off the mark (just as unhelpful stereotypes of “lazy Greeks” are being disproved by the country’s competent handling of this pandemic). When push comes to shove, the German government tends to show its practical side to keep the boat afloat. After all, Germany has no more interest in the potential break-up of the euro than anyone else.