15/08/2012
Towards the end of July, German economics minister Philipp Rösler â and vice chancellor (pictured) - was
being accused of being reckless and unprofessional after saying he doubted Greece's reform efforts would succeed.
It was at that time that he admitted that a Greek exit from the euro had "lost its horrors", evoking a wry comment from
Spiegel that some senior members in Germany's ruling coalition agreed with him. Now
he's back, warning against "populism" in the euro debate, stressing the commitment of his party, the pro-business Free Democrats (FDP), to closer European integration.
He is also breaking ranks with the dissidents in the ruling coalition, picking on the likes of Markus Söder, Bavarian finance minister, who has called for a Greek exit. The Christian Social Union (CSU), Rösler says, needs either make party members moderate their views or it should isolate them.
This was after Söder had told
Bild am Sonntag that "an example must be made of Greece ⦠Everyone has to leave Mom at some point and that time has come for the Greeks". This had prompted from foreign minister Guido Westerwelle a warning: "The tone of the debate is very dangerous ⦠We need to be careful not to talk Europe to death".
Rösler's comments also apply to the CSU general secretary, Alexander Dobrint, who is another to have called for a Greek exit. Rösler, himself no stranger to the genre, now echoes Westerwelle, declaring populism "extremely dangerous", contrary to European values, which include "the principle of give and take".
Nevertheless, Rösler concedes that, if reforms are not made Athens, there can be no third rescue package. We do not want Greece to become insolvent, he says, but if necessary we could deal with the consequences.
What has brought on this sudden outbreak of responsibility to this controversial politician is not clear, and nor is it clear that he is driven by electoral imperatives, even if next year's election is looming large and the FDP is
not doing well.
There are indications, though, that the economy minister is adrift from the mainstream, as Greece has today announced truly appalling
economic news, with the economy shrinking 6.2 percent in the last quarter, making this the fifth year of economic depression.
With nearly a quarter of the workforce (23.1 percent) unemployed, undermining efforts to meet revenue targets and reduce the budget, Athens is asking for more time to meet its austerity programme, evoking a favourable response from
Westerwelle. He appears open to compromise, even if he is stating that there can be no substantial changes to the reform agreements.
On Monday last, Greece managed to sell â¬4 billion-worth of short-term (3-month) government securities, to meet its public sector payroll, but needs another â¬20 billion to keep it going. So it will all have to come out in the wash next week, when prime minister Antonis Samaras meets Merkel.
On the meantime, despite the political hyperactivity, the German people seem to be taking a relatively laid-back view of events. According to a
TNS poll, eighty percent of the population want a "new economic order" and are not bothered by short-term goals.
People, we are told, have become accustomed to the crisis. Concerns triggered by the euro crisis are now replaced by other fears. "Health" is on the top spot, followed by "Satisfaction with personal life situation" and the "protection of the environment". Secure money and growth featured lowest on the list of wants.
Deutsche Welle however, doesn't share these priorities, asserting: "What we need is a new European economic policy, a new monetary union". "The current imbalances will blow Europe apart", it adds. "The deteriorating economic outlook is just a first small pointer. But there is still time to repair the damage. But the situation must be addressed decisively. And that is what is needed right now".
