It wasn’t the most subtle idea developed by German diplomats. The suggestion that a special euro zone commissioner might take control of Greece’s Budget was met in Athens with predictable outrage. Athens has failed to implement its bailout, and hasn’t done anything to combat the scourge of tax fraud. Europeans everywhere are tiring of pouring into Greece the money its citizens are sending abroad. But, the Kommissar proposal’s insensitivity is a reminder the new lone German leadership of the euro zone will need some adjusting.
Angela Merkel has won. The German chancellor has forced her disciplinarian views on austerity on all her partners. France’s economic problems — of which the recent ratings cut is but a symptom — keep it from playing its traditional role of EU co-leader. On the contrary, during a TV interview, Nicolas Sarkozy repeatedly used the German economy’s strength as an inspiration for French reforms.
The news also came that Merkel would campaign for Sarkozy’s re-election. The French president may consider that a mixed blessing, given her unpopularity in France. In the exercise of its new European authority, Germany is still at an awkward stage.
In time, Berlin will have to admit that leading doesn’t mean imposing its model on others. Monday’s euro zone summit could agree on a permanent rescue fund and a fiscal compact among its members, but it might also pay at least lip service to the need for growth-enhancing policies and reforms.
That would be a first sign the euro zone’s new undisputed power is learning that with its role come responsibilities. Then, Berlin will also have to come to terms with the unpleasant fact that a massive current account surplus is not only a sign of economic strength, but also a problem. Germany’s own model also needs reforms if the euro zone is to prosper in the long term.
