Monday, July 13, 2015

The German Question

It is becoming pretty clear that the most urgent question facing today's Europe is the German question.

Paul Krugman sees Germany as killing the European project: http://krugman.blogs.nytimes.com/2015/07/12/killing-the-european-project/  I agree, and have been commenting on the looming disaster for about three years now. The biggest surprise to me is how patient the long-suffering public has been. I hope Greece uses whatever time they have gained by this weekend's deal to print bales of new drachma and prepare to exit the Euro. Spain and Italy should do so as well.

Roger Cohen of the New York Times  claims we thought we had solved the problem of Germany in 1945. I take issue with that, though I think we did believe we had solved it by embracing Germany within the stifling arms of NATO and the Western European Union. As NATO's first Secretary General explained, the purpose of NATO was to keep the Germans down, the Russians out, and the Americans here. To Europe, NATO was at least as much about Germany as it was about the Soviet Union. From 1945 for more than four decades, NATO publicly blamed the Soviet Union for a divided Germany and privately hoped the division would continue. It was Germany under Willy Brandt whose "Ostpolitik" began chipping away at the barriers between East and West for the purpose of making German reunification possible. In the United States, we studied what might happen after Tito died, but never examined the implications of a reunited Germany. Everyone knew that could never happen. Everyone was wrong.

The late George Kennan had some thoughts on Germany, which we should have considered, but of course no one did: http://www.nybooks.com/articles/archives/1998/dec/03/a-letter-on-germany/

More recently, the economic historian Brad Delong had some interesting thoughts in response to Simon Wren-Lewis' ruminations on the Euro: "And we are seriously considering, after reading him, whether the Euro project needs to be blown up--indeed, whether the fundamental flaw was in U.S. occupation authorities allowing the formation of the Bundesrepublik, because a European Union that now had five members named "Brandenburg", "Saxony", "Bavaria", "Rhineland", and "Hanover" would be likely to have a much healthier politics and economics than our current one, with one member named "Germany":"

That's a thought worth retrospective consideration. It is a much more creative idea than the quickly-abandoned "Morgenthau plan."

It's very hard to get toothpaste back in the tube.

Did we waste a whole war?

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