Der Spiegel (Photo credit: Wikipedia)
For the last five years Germany has dominated the eurozone in what Der Spiegelcalled an “economic … Fourth Reich.” Its power has been astonishing, forcing out heads of state and dictating the laws of its southern vassals. No one has dared fight back. Until Sunday.
On July 5, the Greeks unleashed a fight for the eurozone, threatening Germany’s dominance.
We are at a new stage of the eurozone crisis. In the days ahead that may not be immediately obvious. The Wall Street Journal wrote, “The only certainty now is uncertainty.” There are a number of directions this could go. We could see a sudden escalation of the fight. Or Germany may give ground for now, postponing the major battles until later. There are even some signs that we could see a quick capitulation by Greece.
But unless there is a quick Greek surrender, Germany is now engaged in a fight that will radically transform its power.
Why? Germany’s weakness has just been exposed. It has been ordering around southern Europe. Greece just said no. Now the rest of Europe waits to see what Germany will do about it.