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.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
