In the final phase of her chancellorship, Chancellor Angela Merkel faces a historically difficult task. Germany will take over the EU presidency tomorrow. Expectations are high in Brussels. Will there be any decisions about the € 750 billion corona recovery fund and the long-term budget?
The pressure is felt in Germany. “The corona crisis is the greatest challenge the EU has ever faced,” Merkel recently told parliament. “The pandemic shows that Europe is vulnerable. Its medical and economic consequences deepen inequality. That is why I say with full conviction: cohesion and solidarity have never been more important.”
The hottest issue in the aid package that Merkel and French President Emmanuel Macron has in mind is the multi-billion dollar aid for hard-hit countries in the form of a conditional gift. So no loan. And that is precisely what the ‘miserly four’ advocate: the Netherlands, Austria, Sweden and Denmark. Finland has now also joined.
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Now it would be wrong to punish countries for the laxity of recent years.
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Previously, Germany was the strict ‘disciplinarian’ and strongly opposed to common debt. How is it that the German attitude has changed so much and how will the country convince the Netherlands? Three German insiders: Secretary of State for European Affairs Michael Roth, the top boss of the German industrial lobby Dieter Kempf and Professor Monika Schnitzer, member of the Economic Council of the Wise who advises the government, are clear about it.
Kempf recently wrote a remarkable plea for solidarity with his French and Italian colleagues. “It is not about jointly guaranteeing old debts. But nobody is to blame for this pandemic. Now it would be wrong to punish countries for the laxity of recent years. You have to separate that.”
European economies can no longer be seen in isolation from each other, according to Kempf. “Look at the car industry. Every car has parts that have crossed the border several times. A German car door contains parts from the Czech Republic and Austria.” He is concerned about the initial reaction to the corona crisis, the closing of borders and the focus on personal safety. “We have to show that the European economy cannot drift apart, even in times of crisis.”
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We can now really take on a leadership role.
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State Secretary Roth also warns against thinking in national interests. “We really need a clear signal of decisiveness from the EU before the summer. Remember, we are surrounded by world powers that don’t necessarily share our values. They will only be happy if we don’t agree.”
What does he think of the attitude of the Netherlands? Roth remains diplomatic. “I hope the debate will be rational and not ideological.” He defends himself against the image of the stronger and generous North. “Solidarity is good for all of us, including the Netherlands and Germany. Our economies are hugely export-oriented and we depend on stability and prosperity in the countries around us.”
Professor Schnitzer believes that the German Presidency is coming at just the right time. “We can now really take on a leadership role. It is Merkel’s last year as Chancellor. This is her chance to leave behind a package that brings Europe together.” And such a legacy is desperately needed, she says. “The EU is in more danger than ever. If we fail to resolve the crisis for all now, the EU will drift apart.”
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Schnitzer is critical of the attitude of the Netherlands. “I can imagine that every leader thinks about what is good for the people. If clichés like ‘they have lived years above their means and now they want to get out of this crisis at our expense’, they can influence the elections. I understand it, but think it is very shortsighted. “
“Just giving loans now is wrong,” she says. “As a result, countries are only getting more debt. Italy already has a government debt of 130 percent of the gross domestic product.” In her opinion, is the Netherlands too guided by political motives? “It seems like that, yes.”
Macron and Merkel believe there should be an agreement in July on the recovery plan and the European multi-year budget. The Germans also want to get out.
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