Eurozone crisis Do what the lady says

[xchrom]

http://www.presseurop.eu/en/content/article/1240631-do-what-lady-says

Since the eurozone debate turned acrimonious, sociologist Ulrich Beck has accused Germany of a cardinal sin: euro-nationalism. In putting aside democratic values and often behaving arrogantly, Angela Merkel seems to incarnate “a European version of Deutschmark nationalism,” elevating the German culture of domestic stability into a continental dogma. She is blamed for the fact technocrats have taken the place of European politicians. And the veto she slapped on the referendum announced and then withdrawn by former Greek Prime Minister George Papandreou speaks to the gap that has opened between Europe and democracy.

Substantial evidence supports the Beck perspective. Notwithstanding criticism from within her own party, from opposition figures, and even resistance from the so-called Five Wise Men (Sachverständigenrat) charged with advising German governments on economic decisions, Merkel still stubbornly rejects proposals that call on the European Central Bank to provide greater assistance to troubled states.

Germany wasn’t always so reluctant, at least in theory. The idea that in the absence of European political union, the euro was a risky undertaking, has arisen a number of times in the past, both within the Bundesbank and in the German constitutional court, but Berlin nevertheless soldiered on. But now, when it needs to move forward more urgently than ever, it is backing away, as if frightened by a snake.

Less cruel alternative to Chinese model

Some of the things that Beck denounces have also done the rounds of the European left (though not his arguments for a supra-national, “citizens” Europe), but many critics of German neo-nationalism do not share his point of view.

[RKP5637]

1. K&R !!! n/t

[DFW]

2. It's tempting to let theory trump reality

The reality on the ground here in Germany is that except for huge corporate conglomerates, the German people
are pretty much fed up with the Euro, and countries like Greece, Italy, Portugal, etc etc.

Greece faked their data to join the euro, and Italian and Portuguese fiscal discipline is a greater oxymoron than
"military intelligence." The Germans are taxed right and left and sideways, and are pissed about having to subsidize
countries that do not enforce their own tax laws, and expect Germans (and the French) to make up the difference.

The big corporate conglomerates are all for rescuing Greece & friends, as well as the euro. After all, as long as
the euro stays, they can keep exporting their products to southern euro-zone countries with a fair degree of price
stability. If the Mediterranean rim euro countries go back to the New-Drachma, New-Lira, New-Peseta, etc, they can
devalue their currencies against to strong euro-of-the-north, and suddenly have their own countries with a huge price
advantage: Germans can't sell to them as German products are now too expensive, where Germans working for the big
corporations are now in danger of losing their jobs, as their employers can't sell as much as they did before. The
southern European countries can export their unemployment northward. German workers get screwed as they get robbed of
benefits due to a lower tax base.

Countries like Greece were basically cheating the rest of Europe within the euro system, and now that they have
been caught with their hand in the cookie jar, they not only want dinner, but more cookies afterward. The German
electorate has had it, and the taxpayers here are seething. Merkel is trying to keep a lid on that sentiment, but
it's an uphill battle, and to say she's mean is to ignore the political reality she is facing at home. She is first
and foremost Chancellor of Germany, a nation highly allergic to inflation, and not the baby-sitter of Calvin and Hobbes
on the Mediterranean. This is no more German neo-nationalism than Obama's desire to have every American covered by
health insurance is American neo-nationalism. Both were hired to look out for the welfare of the citizens of their
respective countries, and not just a few wealthy multi-national corporations that happen to have their HQ there.

[xchrom]

3. lots of broad brush smears re: the PIIGS.

and really much of it has been debunked.

germany -- along w/ the other usual suspects{ goldman's, etc} were happy to help the PIIGS over the edge.

the same ol same ol -- borrow, borrow, borrow --.