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German Government Embraces Multi-Speed Europe

25. July 2013, von Almut Möller, Comments (0)

It almost slipped off my radar in the summer break, which Berlin dived into at the end of June: the German government seems to change course on its stance towards a multi-speed Europe or, as analysts like to put it, differentiated integration.

If this is really the case then here is some revolutionary news that will change the face of the union as we have known it.

So, what happened? In an opinion piece for Frankfurter Allgemeine Zeitung, one of Germany’s leading daily newspapers, Foreign Minister Guido Westerwelle made the case for a hands-on approach towards different speeds for Europe last week.

It is worth quoting what I consider the essential passage of the piece:

“The dilemma is that in Europe 17 countries share a currency, but there are 28 in the Union. How can we move forward given this tension?

That will only be possible if we start thinking in new ways on integration policy. Reinforcing the eurozone means a clearer commitment by Europe to the principle of different speeds than was previously the case.”

To my knowledge this has so far been the most explicit statement on the need to embrace different speeds in order to engineer the widening gaps between the ‘ins’ and ‘outs’ of the eurozone by a member of the government over the past years. Up till now, the federal government carefully avoided to openly address the de facto decoupling of the eurozone from the wider union. Officials frequently pointed out that, according to the treaties, the euro was the currency of the whole union. With a few exceptions all EU members were ‘pre-ins’ to EMU. Obviously, such an approach reflects the destructive potential that multiple speeds might develop for the union as a whole. In the course of the crisis centrifugal forces have already stretched the cohesion of the union to its limits, and the eurozone is far from being a healthy core naturally taking the lead.

It is noteworthy that in his piece Westerwelle now uses the “17/28”, and not the “25 and a few odd outs” formula usually put forward by the government. Now, the question obviously is what to make of this? Arguably, this is a minister known for initiatives such as the “future of Europe group” that have never quite taken off. The newest declaration adopted in Palma de Mallorca this week went down almost unnoticed. It might well be that the minister’s move, regardless of its timeliness and strategic value, is lost in the silly season. Even more importantly, it depends on whether his message is supported in the federal chancellery. This is where all major strategic decisions have eventually been taken on the Eurozone over the past years. Clearly, the foreign office suffers from being marginalised even further over Germany’s ‘ Europapolitik’. It is possible that the minister and his aides in the foreign office now make an attempt to win back some territory over the strategic questions related to the future of the union. But will this initiative fly?

Politically speaking the contentious issue of multiple speeds is much more relevant for both insiders and outsiders of the eurozone than the initiatives of Guido Westerwelle to trigger an institutional debate on Europe’s future. In terms of substance there might well be allies in Paris on differentiated integration, certainly more so than on the institutional questions over which the German foreign office struggled to bring the French counterparts in. Interestingly, Jacques Delors has been promoting his ideas of rethinking EMU and reconciling it with what he calls “Greater Europe” on various occasions over the past months. Is he intellectually paving the way for the socialist leaders in Paris to find common ground on the future of Europe with Germany again?

It is difficult to tell whether the minister’s piece reflects the wider views in the government, and whether it turns into government policy in the fall. The federal elections could obviously make a difference if they brought a different coalition into office. But if we see more of the same in September, and if Westerwelle’s move is indeed part of the overall thinking in the German government (remember that Wolfgang Schäuble has a soft spot for differentiated integration too), we might see Germany starting to actively engineer a new kind of union under the next government.

“We must always have an eye on the part, but also on the whole” is how the foreign minister concludes his piece. Is Germany about to plot out in greater detail a strategy for a Europe of different speeds that balances the needs of the eurozone with those of the wider union? There will be tough issues to address in the coming months and years. The most important one is clearly whether it will be possible at all to reconcile the future economic and monetary union with the common market as a whole. And what is the glue that will bind the new layers of membership together? In terms of substance, process and alliances there is still a great deal of thinking to be done to make a union within the union work.

Help the Bruised French out of the Corner!

23. May 2013, von Almut Möller, Comments (1)

There has been a lot of bad news last week: the Eurozone is further contracting, France is moving into recession and the EU has been dramatically losing support all across Europe according to figures published in a Pew poll.

Watching President Hollande’s Élysée address one year into his presidency one saw a cornered head of state fighting for his survival at home and against a growing mistrust in Europe towards the French willingness and ability to reform. Not surprisingly, President Hollande, in a desperate attempt to lift the spirits of his fellow Frenchmen, started off his speech with the French leadership in Mali. Not surprisingly, the French president then tried to gain ground vis-à-vis the dominant German neighbour by coming up with a ‘European initiative’: a real economic government, a strategy for investment, a European Energy Community and a eurozone budget. While there might be doubts about the depth and the impact of his proposals one has to acknowledge that the French president did come out of the corner.

In Berlin, however, one hears a lot of derisive commentary about France these days and there are indeed clearly different views about the future architecture of the eurozone. But I saw a man who believed in what he said, who warned that the recession caused by austerity was threatening the very identity of Europe. A President who insisted that his country had made its choice for Europe right from the start, who in the course of the crisis has been trying to “shake things up in Europe” and who is increasingly frustrated about the lack of response from Berlin. A frustration that is likely to expand also to his social democratic friends in the SPD, despite Hollande’s presence during the celebrations of the SPD’s 150th birthday this week. Hollande is watching his country being put into the camp of the ‘poor southerners’ and being publicly accused by the President of the European Commission of not understanding the opportunities of globalisation. What a humiliation for a proud nation to being graciously awarded an extra two years to cut down its deficit – in terms of communication I found this a disaster.
We have got to the point where a public blame game is going on that undermines and disempowers even the most potent leaders in Europe – how does this create the urgently needed trust among citizens that their politicians will eventually manage to find a way out of the crisis?

In all this – and it feels almost absurd living and working here – Berlin still feels like an island of peace. Recession? Didn’t the most recent numbers suggest that the German economy continued to grow, albeit mildly? And doesn’t the minor growth rate support the chancellor’s argument made continuously during the crisis that Germany cannot lift the rest of the eurozone on its own? A lack of citizens’ support? Doesn’t Germany score best in the Pew poll, with 60 per cent of Germans still in favour of the EU despite taxpayers’ money being used for the bailouts?

I wonder if Angela Merkel sometimes wakes up in the morning and asks herself whether she is Alice in Wonderland. Like Alice’s fantasy world, Merkel’s Berlin is full of absurdities these days. As the crisis is threatening to tear the union apart, Frau Merkel enjoys a never ending round dance around herself and an abundance of what I would like to call ‘conversations of comfort’. Not that it is her who actively triggers them – they just seem to happen. Just last month she conversed with the Polish Prime Minister Donald Tusk in the proud representation of Deutsche Bank in Berlin. Just having published a biography on Merkel’s foreign policy Stefan Kornelius, the foreign editor of Süddeutsche Zeitung, led the conversation: no drama, no real challenge, just pleasure and comfort and agreement, and the Polish Prime Minister doing the job for Merkel by raving about pretty much anything Merkel and German. The venue was packed on this occasion and politics, business and the media gathering all seemed to be a bit in love with the lady that holds court in the most non-courting way: she just sat there and enjoyed it as seemingly everybody else. A few days later, it felt like the whole of Europe was hanging on her every word when Frau Merkel conversed with the editors of a women’s magazine in a trendy Berlin theatre, chatting about cooking and what she likes in men.

When are the media starting to do their job properly? I really hope for German and French national televisions to gang up and convince Merkel and Hollande to battle it out openly in a TV duel. One of Merkel’s ways of dealing with potentially uncomfortable adversaries is by simply ignoring them – a strategy that seems to work and make her look even stronger. With a few exceptions, she hasn’t even given her social democratic challenger Peer Steinbrück the dignity of a direct address yet. The worst thing that can happen to Hollande in his attempt to contribute to the future architecture of the eurozone now is to be ignored by the German Chancellor. Berlin should know its responsibilities.

Europe For Citizens

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Blog Authors

Adriaan SchoutAdriaan Schout

Dr Adriaan Schout is Deputy Director Research/Europe at Clingendael, Netherlands Institute of International relations. (read more...)

Alexandre AbreuAlexandre Abreu

Dr Alexandre Abreu is a 33-year-old Portuguese economist with a PhD from the University of London. Currently he is a lecturer in Development Economics at the Institute of Economics and Business Administration, Technical University of Lisbon, and a Researcher at the Centre for African and Development Studies of the same University.

Almut MöllerAlmut Möller

Almut Möller is a political analyst in European integration and European foreign policy. She is currently the head of the Alfred von Oppenheim Centre for European Policy Studies at the German Council on Foreign Relations (DGAP) in Berlin. (read more...)

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