berlin brief

There have recently been intense discussions in Germany’s EU partner countries over Berlin’s handling of the Greek debt crisis and its impact on the euro zone.

Has Germany fallen out of love with the European Union?

This is a question increasingly raised in Western capitals. Funny enough, Berlin seems to be immune to this debate. Over the last months, Germany’s “Europapolitik” was stuck in navel-gazing, either ignoring or not understanding the questions and criticism directed to the Merkel government from abroad.

A couple of new papers written by both German and European analysts have picked up the issue, aiming at explaining the “neue deutsche Europapolitik”.

Wolfgang Proissl, a journalist with Financial Times Deutschland who is currently a visiting fellow at the Brussels based think tank Bruegel, has written an excellent essay on Germany’s past, present and future role in Europe:

“Why Germany Fell out of Love with Europe”, Bruegel essays and lectures, Brussels, 1 July 2010.

Jacques Delors’ Paris based think tank “Notre Europe” has just published a compilation of papers of both German and European analysts, discussing “Where is Germany Heading?”:

“Where is Germany Heading?” (directed by Renaud Dehousse and Elvire Fabry), Notre Europe Studies and Research 79, Paris 2010.

How will the European Unon and its members accomodate the “new” Germany?

For all those who had doubts after the BBC’s James Coomarasamy put him to the test last September: Germany’s Foreign Minister Guido Westerwelle actually does speak English.

And he proved a sense of humour when the new British Deputy Prime Minister Nick Clegg and Foreign Secretary William Hague came on their first visit to Berlin this week. (more…)

Perhaps most Europeans still haven’t heard of the European Union’s new President. But Herman van Rompuy, who appeared on the scene in late 2009 with a new provision of the Lisbon Treaty that foresees a permanent elected president for the European Council (”The EU Summit”), has become a man to count on in the Union.

Supported by an experienced and influential team, Van Rompuy has left his marks in a number of major policy issues in his first months in office; and he used the fact that he is the first person to occupy and shape the new position to his favour.

In the economic crisis that brought Greece into turmoil and with it the euro currency, Van Rompuy has developed into a major player.

Without making much noise, he is the one pulling the strings to hammer out reforms aimed at strengthening the governance of the eurozone. The former Belgian prime minister is heading a “task force” that is expected to put initial suggestions to the European Heads of State and Government at their summit in Brussels next week (17-18 June 2010).

This week, Van Rompuy has been on a tour d’Europe to assess the temperatures in Europe’s capitals. No doubt that the support of Germany, the largest economy in the European Union and the eurozone, is crucial to any reform changing the rules of the Stability and Growth Pact.

However, Berlin has been rather isolated so far with its suggestions to Europe’s ministers of finance. (Take a look at the berlinbrief, 24 May 2010)

Will Van Rompuy manage to facilitate an agreement?

Here are Van Rompuy’s official remarks after the meeting with Chancellor Merkel, in which he outlines the reform priorities for the weeks and months to come: (more…)

Chancellor Angela Merkel is struggling with the impact of the Euro crisis.

She is not only facing criticism for what is seen as a going-it-alone approach in the currency crisis by European and international partners. Back in Germany, life has not been easy either, with the Social Democratic and Green opposition’s decision not to support the security umbrella for the Euro zone.

Will Merkel prevail?

Take a look at the newspapers:

“Germany’s Lonely Chancellor” (Spiegel Online International, 24 May 2010).

“Merkel ‘Botched’ Her Duties in Euro Crisis, Says Joschka Fischer” (Spiegel Online International, 24 May 2010).

“Whatever Germany Does, the Euro as We Know It Is Dead” (The Daily Telegraph, 20 May 2010).

“Lawmakers in Germany Back Rescue for Europe” (IHT, 19 May 2010).

“Germany Acts Alone to Protect the Euro and Big Banks Against Speculators” (IHT, 19 May 2010).

“As Guardian of the Euro, Merkel Faces a Difficult Domestic Balancing Act” (IHT, 3 March 2010).

On Friday, the German Bundestag will decide in an emergency vote on the austerity measures for Greece by the IMF and the European Union.

The largest economy in the eurozone, Germany will contribute with more than 22 billion euros to the aid package.

The coalition of Chancellor Merkel’s CDU, the Bavarian sister party CSU and the Free Democrats of Foreign Minister Guido Westerwelle will succeed in passing the law with their majority in Parliament. It looks like the Green Party will support the aid package, while the Left Party – as expected – will vote against it.

Chancellor Merkel will be able to travel to Brussels to the emergency meeting of European leaders later on Friday with a “Yes” from Berlin. The most important country in the eurozone will give green light for the kick off of the austerity measures, hoping that the decision will eventually calm down the markets and set Greece back on track.

But the German “Yes” in Brussels will be a weak one: The Social Democrats under their leader Sigmar Gabriel and the head of the SPD parliamentary group, the former foreign minister Frank-Walter Steinmeier, have decided to deny the government support to the austerity package. They recommended to their MPs on late Thursday evening to abstain from the vote. (more…)

The berlinbrief wants to draw your attention to a number of new reports by non-governmental organisations assessing the German government’s security and arms policies. In the Foreign Ministry, you will often hear the slogan “Aussenpolitik ist Friedenspolitik” (”Foreign Policy is Policy for Peace”). What do the independent institutions say?

You might remember that the Stockholm International Peace Research Institute has recently published its annual report, ranking Germany as the world’s third largest arms seller (see berlinbrief, 28 March 2010).

Also, in December 2009, the Joint Conference Church and Development (Gemeinsame Konferenz Kirche und Entwicklung, GKKE) presented its 13th annual report. The report collates publicly available information on German arms and armaments exports of the year 2008 as well as on export licences, and evaluates the data in the context of the government’s commitments within the coalition treaty and the European Union.

Now, the English summary of the GKKE 2009 report is available. The berlinbrief publishes it in full length without additional editing. (see below)

Next week, the “Friedensgutachten” (”Peace Report”), an annual report by five renowned German institutes for peace and conflict research, will be presented in Berlin. The berlinbrief will get back to the issue. For now, a summary in English is available here.

Here is the summary of the 2009 GKKE report in full length: (more…)

Does it surprise you to hear that?

The country that considers itself to be a “civilian power” and that is known for its reservation to send soldiers to missions abroad has doubled its arms exports over the last five years, according to a study published by the Stockholm International Peace Research Institute (SIPRI).

Download SIPRI’s report here.

Take a look at reactions in the media:

“Germany Now World’s Third-Largest Arms Dealer” (Derek Scally in The Irish Times, 16 March 2010).

“Booming Business: Germany Now World’s Third Largest Arms Exporter” (Spiegel Online International, 15 March 2010).

The crisis of the Euro and the question how much support to give to the Greek government continues to make the headlines in Germany and the European Union.

berlinbrief lists selected articles on reactions in Berlin:

Berlin Angered by Presumed Pressure from Speculators (Spiegel Online International, 2 March 2010).

Plans for European Economic Government Gain Steam (Spiegel Online International, 1 March 2010).

Greece’s Debt Crisis: Blaming Nazi Germany (Time.com, 26 February 2010).

“The Current Crisis is an Affirmation of the Euro” (Spiegel Online Internationa, 26 February 2010).

Germany Quietly Gains from Euro Zone Crisis (Reuters, 24 February 2010).

Nostalgia for the Mark in Germany (Judy Dempsey in the International Herald Tribune, 17 Februar 2010).

Germany, Forced to Buoy Greece, Rues Euro Shift (Nicholas Kulish in the New York Times, 11 February 2010).

Greek Debt Crisis: The View from Germany (Kate Connolly in the Guardian, 11 February 2010).

“All euro area members must conduct sound national policies in line with the agreed rules.”

This was the first phrase of the official statement announced by the European Council’s President Herman van Rompuy at the EU summit in Brussels on 11 February 2010. The message to Greece was clear: Ultimately, we won’t let you down. But for now you have to sort out your debt problem on your own.

The German government was the major driver in blocking the adoption of an immediate rescue plan for Greece at the summit. Berlin instead pushed for the stark reminder on the stability and growth pact that every member of the eurozone has to sign up to, in order to avoid a watering down of the eurozone rules. Other EU members had pushed for a quick rescue plan to prevent the euro from further dropping, a development that could create a “domino effect” in the eurozone.

In the European (especially the British) media, Germany was criticised for insisting on rules in a moment of a severe crisis of the euro currency.

Here’s some of the considerations that I believe have driven Chancellor Merkel’s decision: (more…)

Have you heard the news? Germany is lagging behind China.

“China to overtake Germany as world’s leading exporter”, the FT reported at the weekend.

For many years Germans have prided themselves on the title  of the “Exportweltmeister” (world champion in exports). “Made in Germany”.

What a day for the German psyche.

Read more:

“China Dethrones Germany as Top Goods Exporter” (Wall Street Journal, 6 January 2010).

“The New Weltmeister: China Upsets Germany as Leading Export Nation” (Spiegel Online International, 6 January 2010).