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Why the Rest of Europe Isn’t Happy With France and Germany

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Posted on Nov 3, 2010

By William Pfaff

PARIS—The European Union’s leaders, Germany and France, decided Oct. 30 to try to change the EU’s Lisbon Treaty. This is a highly charged and divisive move. While the Germans and French want important changes, a large number of the other 25 members do not. The Irish legally can’t agree to any substantial change in their adherence to the EU without a referendum, which frightens the rest as opening Pandora’s box.

Angela Merkel’s Germany insists on change because of the euro zone debt problem, which has the German electorate highly upset—for bad reasons. This unrest threatens Chancellor Merkel’s center-right governing coalition.

The public, and many among Germany’s political elite, are upset because of what the international press insists upon describing as the EU (or as the Germans like better to say, the German) “bailout” of Greece from its debt crisis earlier this year. The Germans want a permanent EU bailout fund that will spare them from again being called on to solve future EU member failures. They may also want—the details of their demands remain unclear, probably even to Germans—a permanent institutional arrangement for debt restructuring or rescheduling, with rules and automatic punishment for sinners.

This would be more plausible if, in fact—as the Financial Times again put it last weekend—the question were really one of “sovereign bailouts ... largely funded by European taxpayers.”

“Funded” is an equivocal word, but seems to be interpreted by the German voter (and German politicians) to mean “paid for” with money never to be seen again. The thrifty Germans seem to think that their taxes and savings are being taken away to subsidize profligate and indolent Greeks, lying about on beaches.

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There are two things to be said about this. The first is that no one is giving away anything to the Greeks. The current European fund operates in conjunction with the IMF to lend money to Greece if necessary, following time-honored rules established by the IMF for all countries requiring debt relief. Greece will be no exception and will have to pay back the money with interest.

As the conservative French daily, Le Figaro, said Monday, those who purchase state bonds, reassured by the presence of the IMF arrangement, run some risk “that their investment may decline in value and have to be rescheduled over time,” but this is the case with any enterprise in difficulty, and in the Greek case, “there is no risk of failure or bankruptcy.” The EU economy, as many seem to forget, remains the most powerful and successful in the world, despite the international financial crisis (imposed on the world, one must note, by feckless and frequently crooked American high finance, and by American government deregulation and negligence).

The European Central Bank’s president, Jean-Claude Trichet—a man of orthodox economic views if ever one existed—stood against both Merkel and his fellow Frenchman, President Nicolas Sarkozy, in arguing that discussing the debt problem in the dramatic terms used at the meeting Thursday, where the German and French leaders demanded Lisbon Treaty revision, deters private investors in Europe, pushes up interest rates and consequently adds to the burdens of the indebted countries.

The second problem is deeper, more subtle, and more important. The EU started out as a method for preventing a fourth Franco-German war, and for promoting permanent reconciliation, rapidly joined by Italy and the Benelux countries. It has for complex and fundamentally generous, if not always prudent, reasons turned itself into an organization of all of the western and Balkan European states.

A glance at history demonstrates that these have for centuries suffered rivalries, religious and dynastic conflicts, ethnic, economic, territorial and trade wars, consuming, as someone has said, a great deal more history than they found it comfortable to digest.

We have in fairly recent years seen the former Yugoslav nations—all ethnically kindred and linguistically linked, but divided by religion and territorial rivalries—throw themselves upon one another with a savagery unknown since the Nazi genocidal murder and pillage of what Germany’s leadership 65 years ago considered the inferior “races” of Europe.

The EU has been a heroic effort to put a permanent end to such things. Europe is a place of immense divergences and historical grievances, and a multitude of cultures and ways of life. The Greeks (and Irish) are not Germans, to put it mildly. In Greece and the Balkans, and in much of Catholic southern Europe, the state historically has been weak or absent, an insecure structure in which to conduct one’s life. Family usually has counted for far more.

The wealth of Greece today remains primarily tied to family, and to personal codes and structures of obligation, rather than to an impersonal state. In this respect, Greeks are the opposite of Germans, as are many of Europe’s new members. If Germany should behave as if all of them need to be lashed into line with Northern European Protestant norms of society and economy, there might soon no longer be a EU.

Visit William Pfaff’s website for more on his latest book, “The Irony of Manifest Destiny: The Tragedy of America’s Foreign Policy” (Walker & Co., $25), at www.williampfaff.com.

© 2010 Tribune Media Services, Inc.


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basho's avatar

By basho, November 7, 2010 at 7:22 am Link to this comment

tropicgirl-

on the upside of it:
- you saved yourself $25.- by not buying Pfaff’s ‘new’ book.
(i can’t imagine anything this author could say as new. deluded yes. new, no.)
- your comments may cause Pfaff to start thinking rather than just foaming at the mouth.
“Throw themselves upon one another with a savagery unknown since the Nazi genocidal murder and pillage of what Germany’s leadership 65 years ago considered the inferior “races” of Europe.” (his sense of history is sophomor(on)ic at best)
- there are times when it is very cathartic to round on clowns like this. although even negative commentary probably feeds their personality dysfunction.

...in a truth-dig one always finds some garbage. wink

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tropicgirl's avatar

By tropicgirl, November 6, 2010 at 7:45 pm Link to this comment

I don’t get it. Will Truthdig continue to mine
stories from people who its own bloggers do not
trust, who its own bloggers do not care for their
opinions whatsoever? Who are, every day, like the
affirmative action putz, discredited?

This is the strangest thing I have seen. But it sort
of reminds me of the Hill Blog, which isn’t far from
the same scenario. And, actually Politico isn’t
faring too well with its bloggers.

And Firedog is a complete joke with neandertholistic
writers making no sense, in an alternate world, that
no one has ever been to.

I can’t imagine how this can continue. Do 5 bloggers
that make sense, out of an entire post, actually cut
it?

Please, someone enlighten me.

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By Bill Jones, November 6, 2010 at 7:39 pm Link to this comment
(Unregistered commenter)

“Throw themselves upon one another with a savagery unknown since the Nazi genocidal murder and pillage of what Germany’s leadership 65 years ago considered the inferior “races” of Europe.”

You are of course, forgetting the American Genocide in Iraq.

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By SteveK9, November 4, 2010 at 3:07 pm Link to this comment
(Unregistered commenter)

Germany’s mercantilist trade policies have a lot to do with EU’s
current problems.  They are not blameless.

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basho's avatar

By basho, November 4, 2010 at 11:47 am Link to this comment

‘Why the Rest of Europe Isn’t Happy With France and Germany’

this article is a smorgasbord of inanities.

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By gerard, November 3, 2010 at 10:42 pm Link to this comment

“The EU economy, as many seem to forget, remains the most powerful and successful in the world, despite the international financial crisis (imposed on the world, one must note, by feckless and frequently crooked American high finance, and by American government deregulation and negligence).”
This expreses an aspect of U.S. foreign relations that our government would doubtles like to drown in the bathtub so it never sees the light of day.

How do European countries achieve such a high degree of cooperation when they are an aggregation of century-old feuds and mass killings and internecine conflict?  If they can get their act together, there’s hope. 
  ut the forces behind unregulated world corporate capitalism, floating everywhere like electronic ghosts,  are not interested in limitations and compromises, between nations or agencies if they decrease profits.
  Sooner rather than later, governments are going to have to uunite to reach some mutual agreements on inter-nation regulations and enforcement cooperation or another ruthless IMF will gladly, recklessly, fill the vacuum at the expense of millions of us “ordinary peope” who will have no say except through our governments, if that.

None of us are alone any longer.  International Cooperation at the government level is vital for the survival of the human race. It’s a whole new ball game that history has not prepared us for, so we will have to invent cooperatively as we go.

Human minds and spirits are being asked to stetch and open to a degree never before anticipated.  Ultimately, it means basic changes in human psychology—an enormous leap toward the next level.

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By eir, November 3, 2010 at 6:14 pm Link to this comment

Who are the Germans really bailing out?  Why, isn’t it those same financiers that the American people are bailing out?  The Germans are being accused of being anti-Greek (whooooo, those bad Nazis, at it again, didn’t we teach them a lesson once?).

Merckel Slams Greek ‘Scandal’ As Goldman Role Examined 

The Germans, surprisingly, like most people, don’t like paying for other people’s debts (they kinda have some painful memories associated with this, even), and especially not for debt that was encouraged by the very interests who did the real profiting, see oligarchical “financiers” not Greek family-lovin’ types breaking too many plates while the baklava was flying out of the oven.

In effect, the real high flyin’-type speculators / looters laid a trap for Greeks and Germans alike.  The Greeks and Germans are now, both unhappy.  The speculators / looters (we’re familiar with them by now, aren’t we?) not so unhappy, in fact, it worked out just fine for them.

Interesting, that Truthdig has recently reported on little bomb-like messages from Greece to Sarkozy and Merkel in recent days????  Huh, I wonder what that message would be, and who could be behind it?  It’s a mystery.

An interesting reminder, and some relevant background:

” Let us recall the circumstances under which Germany was forced to accept European monetary union. The Berlin Wall came down in November 1989, and then-Chancellor Helmut Kohl issued his Ten-Point Program, which called for close cooperation between the two confederated states of Germany, leading toward federation. British Prime Minister Margaret Thatcher thereupon launched her “Fourth Reich” slander campaign against Germany, while French President François Mitterrand threatened that France would only agree to reunification, if Germany renounced the deutschemark and agreed to the earlier anticipated monetary union. Mitterrand advisor Jacques Attali wrote later, in a biography of his boss, that Mitterrand had even threatened Kohl with war and a revival of the Triple Entente, in the event that Germany refused to comply. Two days later, one of Kohl’s closest advisors, Alfred Herrhausen, was assassinated. Kohl later described the pressure coming down on him at the EU summit meeting in Strasbourg in early December, to give up the deutschemark, as his life’s darkest hour.

It was clear at the time to anyone with economic sense, that this monetary union could not function without European political unity to back it up. Because as a separate, forced measure, it would not serve as a catalyst for European unity, but instead would permit the various states’ diverse interests to erupt all the more starkly. And that is precisely what will become clear now in the coming “great euro storm,” in the context of worldwide hyperinflationary explosion.”

For more:  Helga Zepp LaRouche:  After Ireland’s “No” to the Lisbon Treaty, June 29, 2008

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