Project for Philosophical Evaluations of the Economy |
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Finally Ms. Merkel is talking directly to the EURO-zone public
Observation on Germany’s PR disaster, first drafted on Jan. 26, published on Jan. 27, 2012
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There can be no doubt, that Germany and in particular, Chancellor Merkel, have lost the international public
relations battle that has been, and is being waged around the EURO-zone efforts to resolve its debt crisis. It,
hence, comes as no surprise if it is just about anywhere standard wisdom by now, that Germany’s policy stance in
all of this is one of austerity and austerity only. And yet it is neither correct nor fair to put it quite like this.
After all, it is not just Germany’s substantial financial commitment to the common cause (see footnote ***), which is
constantly being neglected and belittled by the anti-austerity critics. No, it’s also the fact that Germany’s position
never was an austerity-only approach which explains why it is continuously being short-changed in the
international debate. No, no, anyone who is remotely honest here, has to accept that it has always been Germany’
s intention to marry the idea of strong fiscal discipline with that of substantial structural, free-market reforms. Alas,
and here is where our nation’s historical baggage and Ms. Merkel’s personal politeness work most to its
disadvantage, Germany has never been outspoken and pushy enough in detailing exactly which structural
changes it would like to see implemented in the ailing countries of the South. And it is, hence, this reticence to put
other government leaders publicly on the spot which has contributed most to a general perception according to
which Germany’s policy goal is one of austerity only.
Now, obviously, there are ample reasons why any German government would be very reluctant to meddle in the
internal affairs of neighboring countries. But it also needs to be recognized that too much caution can occasionally
be quite self-destructive.
And so it comes as quite a bit of relief that Ms. Merkel has finally decided to talk directly to media outlets in Spain,
Italy and elsewhere (see her interview with El País, Le Monde, La Stampa, the Guardian and Gazeta Wyborca, published on
January 26) in order to explain what it is that she would like to see implemented in the aforementioned countries.
In a perfect world, that should have happened a long time ago. And it is probably the fault of her press secretary
that such outreach attempts have not taken place earlier. As much as it is welcome though that Ms. Merkel is now
getting more forthright in her explanations, we should not fool ourselves thinking that such proactive initiatives will
be sufficient to convince critics like George Soros to give up their opposition to austerity at all. For that the
ideological battle will have to go on. And it will be up to the future and the future only to decide which side of the
argument had the better understanding to begin with.
----
Footnote***: Do not forget that Germany is the biggest contributor to the European rescue facility, that it is the principal financing
source of the ECB and that it has acquiesced to the ECB´s bond buying program, which clearly transcends the limits of the bank’s
original statute.
Observation on Germany’s PR disaster, first drafted on Jan. 26, published on Jan. 27, 2012
--------------------------------------------------------------------------------------------------------------------------------
There can be no doubt, that Germany and in particular, Chancellor Merkel, have lost the international public
relations battle that has been, and is being waged around the EURO-zone efforts to resolve its debt crisis. It,
hence, comes as no surprise if it is just about anywhere standard wisdom by now, that Germany’s policy stance in
all of this is one of austerity and austerity only. And yet it is neither correct nor fair to put it quite like this.
After all, it is not just Germany’s substantial financial commitment to the common cause (see footnote ***), which is
constantly being neglected and belittled by the anti-austerity critics. No, it’s also the fact that Germany’s position
never was an austerity-only approach which explains why it is continuously being short-changed in the
international debate. No, no, anyone who is remotely honest here, has to accept that it has always been Germany’
s intention to marry the idea of strong fiscal discipline with that of substantial structural, free-market reforms. Alas,
and here is where our nation’s historical baggage and Ms. Merkel’s personal politeness work most to its
disadvantage, Germany has never been outspoken and pushy enough in detailing exactly which structural
changes it would like to see implemented in the ailing countries of the South. And it is, hence, this reticence to put
other government leaders publicly on the spot which has contributed most to a general perception according to
which Germany’s policy goal is one of austerity only.
Now, obviously, there are ample reasons why any German government would be very reluctant to meddle in the
internal affairs of neighboring countries. But it also needs to be recognized that too much caution can occasionally
be quite self-destructive.
And so it comes as quite a bit of relief that Ms. Merkel has finally decided to talk directly to media outlets in Spain,
Italy and elsewhere (see her interview with El País, Le Monde, La Stampa, the Guardian and Gazeta Wyborca, published on
January 26) in order to explain what it is that she would like to see implemented in the aforementioned countries.
In a perfect world, that should have happened a long time ago. And it is probably the fault of her press secretary
that such outreach attempts have not taken place earlier. As much as it is welcome though that Ms. Merkel is now
getting more forthright in her explanations, we should not fool ourselves thinking that such proactive initiatives will
be sufficient to convince critics like George Soros to give up their opposition to austerity at all. For that the
ideological battle will have to go on. And it will be up to the future and the future only to decide which side of the
argument had the better understanding to begin with.
----
Footnote***: Do not forget that Germany is the biggest contributor to the European rescue facility, that it is the principal financing
source of the ECB and that it has acquiesced to the ECB´s bond buying program, which clearly transcends the limits of the bank’s
original statute.
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| Keywords: Germany and the EURO crisis, Ms Merkels PR strategy, Germany's PR disaster, misrepresentation of Germany's policy goals, austerity and growth, austerity and structural reform, Germany mishandling the EURO crisis, European debt crisis, anti-austerity critics |