Eurocrash: more theatre for the lumpen masses

15/06/2012

There are few things worse than the sugar of consensus politics, so it is refreshing occasionally to see a flash of fire between European politicians – even if it is simply more theatre.

Thus, from Reuters we get news of Merkel criticising France's economic performance, in what is described as "a growing war of words with its new Socialist President Francois Hollande over how to tackle Europe's deepening debt crisis".

Describing her own country as Europe's "stabilising anchor and growth engine", the centre-right chancellor told German business leaders that Europe should talk about the growing gap between the bloc's two biggest economies and traditional allies.

Tension, we are told, has risen so much that French prime minister Jean-Marc Ayrault felt moved to deny that his country was trying to form a united front with Italy and Spain against Merkel and her drive for austerity in the single currency zone.

We could go on with the Reuters narrative – it is quite long – but for one thing. There is no recognition that this is happening on the eve of the French parliamentary election run-offs, where the Socialists are playing to their domestic audience.

It will do Hollande no harm at all, electorally, to be on the receiving end of a few side-swipes from Merkel. They allow him to position himself as defending the national interests, etc., etc. Not until after this Sunday's elections can you begin to take anything at face value, and then considertable care must be exercised.

Here though, there is an added complication. Merkel is setting out her stall for the G20 summit which opens on Monday in Mexico. Germany will be the centre of attention, she expects, so there will be much posturing ahead of the meeting.