Germany has elections on September 22, 2013. Angela Merkel supports the euro and is against financial transfers to Southern Europe though standard economic theory explains that a common currency requires such transfers. Merkel doesn’t mind her inconsistency and the misleading of voters since her goal is to win. After the elections, developments will force her to choose and perhaps then she will confess that the euro requires a United States of Europe with Germany to pay the bill. But power first, truth later.
Merkel thus shows herself a worthy daughter of Helmut Kohl who introduced the euro without telling the general public about the consequences that were already known to economists at that time.
The curious thing is that anyone can find this information on the internet, in economic textbooks, in the ample discussions on the European crisis, in the election programs of other parties, notably in Alternative für Deutschland (AfD) that has been founded for this very reason. German voters don’t seem to care. They seem to prefer the seeming certainty of the Merkel Ostrich Act above the uncertainty of new information and hard choices.
Merkel’s minister of finance Wolfgang Schäuble finally made some comments now that a new programme for Greece is required. Apparently not right away, the unemployed in Greece will have to wait till after the German elections. Bernd Lucke of AfD rightly comments: “He is miles away from laying all his cards on the table and talking straight with the population.” (Financial Times, August 20.) Will the German Election Summer finally turn hot this coming month or was this FT article just a fluke of reality ? A point is that economics professor Bernd Lucke is at danger of becoming too political himself too, as he apparently neglects my new suggestion for the theory of the optimal currency area, see MPRA or RWER.
A Ph.D. thesis by journalist Jens Peter Paul gives an interview with Helmut Kohl from 2002 where he clarifies his considerations, see this article by Valerina Pop at the EU Observer (2013). Kohl professes that his main concern was to prevent war. His circumstances were not as peaceful as presently is the case: the reunification of Germany was contentious and the USSR hadn’t collapsed yet. If it is true that the European political elites had been slowly manoeuvering towards a United States of Europe anyway then one might conceive an argument that a move towards a single currency might give good leverage (which argument of course neglects crucial national sentiments).
Kohl & Merkel make a complex couple. Merkel abhors the election finance scandal that Kohl caused and that forced her to replace him. Kohl abhors having been caught and replaced. Helmut Kohl is reported to have said that Merkel now is destroying his Europe, but he denies to have said so, see here. In 2012 we saw a forced meeting-again with clenched smiles, see here. British commentator Paul Goodman states: Merkel is Kohl, Cameron is Major.
Let us wish that Merkel doesn’t want to be a worthy daughter of Kohl and comes out clean. There is nothing to be afraid of, see my said paper on money.
PM. The article by Valentina Pop has a comment that refers to dr. Rath who points to persistent German efforts at world domination since 1900 (with some farmaceutical companies that annoy him and that have undeniably nazi and holocaust links). Kaiser Wilhelm clearly hated the British Empire (and his British mother). A quick introduction is provided by the open letter in the International Herald Tribune, December 12, 2012 in relation to the Peace Prize for the EU. In itself it is striking that the first EU Commission President Walter Hallstein is a German who apparently wrote on European “integration” already before and during WW II. This however is not mentioned in Wikipedia (yet). In itself one can understand that Germany after WW II opted for European integration rather than being dominated by France and England. Perhaps it is a good idea for the EU Parliament to provide funds to historians to look into that open letter (and to farmacists for dr. Rath’s other claims).