Dullien, S. (2015) “Note from Berlin: The Greek compromise“, European Council on Foreign Relations, 26 February.
When the eurozone finance ministers came up with a compromise with the new Greek government on the rescue package last week, the German media almost unanimously applauded Finance Minister Wolfgang Schäuble and Chancellor Angela Merkel. Although, later, there was some grumbling about the details of the list of reforms, the general tough stance of the German government was cheered.
After all, on material issues, very little was conceded. German media hailed this as a victory for the German government against some naughty boors from Athens who wanted once more to violate rule and order in Europe. If anything, commentators wished that Schäuble had taught the Greeks a harsher lesson.
The German media reaction is yet another sign that the German debate has been decoupled from that in the rest of Europe. It is true that almost everyone in the euro group was annoyed by the Greek finance minister’s way of trying to renegotiate the agreements on which the rescue packages were based. But European governments also shared the feeling that, in economic terms, Yanis Varoufakis had a point in criticising the economic rationale of the adjustment packages. Even the British Economist magazine – not famous for supporting left-wing socialist dreams – wrote in its latest issue: “the euro zone desperately needs a counter-narrative to its failed German-inspired policy of austerity.”
Relevant posts:
- Norbert Häring: Was it worth it? Concessions to Greece relative to the rejected draft of 16 February, Norbert Häring – Geld und Mehr Blog, 21 February 2015.
- Mauro, Ρ. (2015) “Greece’s Reprieve: In Praise of Kicking the Can Down the Road“, Peterson Institute, RealTime Economic Issues Watch, 24 February.
- Aldermanjan, L. (2015) “Tsipras’s Debt Plan Sends Athens Stock Market Sliding“, The New York Times – International Business, 28 January.