When she left office, Angela Merkel was celebrated across Europe as a benevolent and circumspect leader who had led the Continent through a succession of serious calamities.
This was in striking contrast to her public image during the Greek debt crisis, when cartoonists depicted her in SS uniform resplendent with swastika. But those cartoons were for the masses only. The European political elites, all of them, happily voted with the Merkel government when it came to disciplining the Greek dissidents. They were as eager as the Germans to keep European monetary union alive. Merkel has left Europe to a political class to whom she has not only taught the trickery of two-level politics — national and supranational — but whom she has also, in part, brought to or kept in office. It is a political class that has bet its future on a Europe built around German hegemony.
In many parts of Europe, it is still considered a pleasant surprise to see a German who is soft-spoken with good manners, a wide heart and a big purse, smiling rather than shouting. This proved useful in her rise to becoming informal ruler of the continent. It also helped that she was a woman — someone who could be pictured as a nourishing mother as opposed to a punishing father.
But other things were more instrumental in her rise. When she took office, in 2005, major developments had recently taken place, and major decisions made, which certainly eased her career progression. In the Nineties, centrist political parties, of the Right as well as the Left, had been programmatically emaciated by the advance of neoliberal globalisation. Her party, the Christian Democratic Union (CDU), had been unable to reconcile ever more rapid capitalist modernisation with its traditional commitment to paternalist social protection. This left an ideological vacuum that would give her unprecedented room far for manoeuvre once she became leader.
It also helped that her main rival, the Social Democratic Party (SPD), was breaking apart over the Third Way social policy reforms of her predecessor, Gerhard Schröder — in particular Agenda 2010, which cut unemployment benefits and increased the pressure on people to accept job offers. Not only did the Agenda weaken the SPD for decades, but it spared Merkel, once she had ascended to the chancellorship, from having to implement the neoliberal reforms she had promised as opposition leader. Instead, she could allow the SPD, her partner in three coalition governments, to try to work out reforms to the Schröder reform, thereby reminding its constituents that it was responsible for policies they hated. Merkel, for her part, could claim for herself rising levels of employment and the balancing of the federal budget.
Rising employment and declining fiscal deficits weren’t just a result of the Agenda, though. Merkel’s third and most important long-term advantage was the work of the European heads of government who had created European Monetary Union in the Nineties. It is worth remembering that the common currency was a project not of German but of French and, to a lesser extent, Italian elites, who had hoped that a currency shared with Germany would force neoliberal restructuring in their own countries while protecting them from German financial competition. As it turned out, the former goal was defeated by domestic opposition, while the latter evolved into a Plan B: the southern member states would extract monetary and fiscal policy concessions from Germany in exchange for remaining in the union.
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