My Hero Angela Merkel

Angela Merkel
Photo by Armin Linnartz

The BBC World Service has been doing its usual bang-up job of reporting European politics this week. Greece of course tends to dominate that news, after several governmental failures to assemble a sound fiscal policy, a run on  Greek banks, and now this week's newest Greek financial disasters. To add to the ever-expanding and cascading problems, a new French president has been elected, a Socialist with the same tired ideas of government fixes for all problems including economic growth. Italy, Spain, and Ireland are not faring much better either.

And yet, in the midst of this rash of fiscal irresponsibility and crisis, I am happy to point out the last remaining financial adult in the room of European politics, German Chancellor Angela Merkel.

I cannot say that I agree with her policies and positions one hundred percent of the time. Many of her beliefs and accomodations have been against my liking. But I must applaud her where applause is due: she is the only one pursuing a viable path with regard to the euro and the continued success of the European Union.

Ms. Merkel has pursued a policy of fiscal austerity in Germany for the past several years now, in an attempt to curb explosive debt and budget deficits. The credit is hers for insisting that the government live within its means. Yet her position of fiscal austerity has become increasingly marginalized as more and more pressure is brought to bear on her to "evolve" with the rest of Europe (and the United States) and to dump more stimulus money on the economic fire.

This unpopularity is symptomatic of both the problems with the composition of the EU and with the personalities and philosophies involved. Germany happens to be the economic powerhouse of Europe at the moment and the one with the most financial clout, whilst the other countries are being run under much more liberal financial conditions and are suffering mounting debt and credit problems. There is jealousy of Germany's success, to be sure, without a proper understanding of why it is successful.

But this week's developments have not only brought all these issues to a head, but have also demonstrated Ms. Merkel's resolve to remain solvent in the face of extraordinary opposition . The leadership of the EU is floating the idea of selling "euro bonds," or generating stimulus cash by selling European debt. The idea is both stupid and dangerous.  It is stupid because none of the EU countries needs or can afford to add any more debt to their ever-growing pile. But more importantly, it is dangerous because (as the BBC has pointed out) Germany would be the one left holding the bill because of its sound financial position. In effect, Germany's success would subsidize the other EU nations' failures.

Angela Merkel has fought the other EU nations' fiscal policies before, but this is probably the biggest challenge she will have yet, mainly because both President Barack Obama and new socialist French President Francois Hollande are both pushing heavily for it. Merkel realizes that Germany is being called upon to pay for economic failure that was not of its own doing, and rightfully resents that call.

She has already begun to voice her disagreement on this issue, and I pray she fights vigorously against it. She is a sane head amidst other heads that seem permanently stuck in the clouds. God bless her.