October 1, 2015 – Le Monde published an editorial by SEP Senior Fellow Lorenzo Bini Smaghi, in which he argues that Germany needs to overcome its fears. While the German economy is strong, it is not the only solution to European economic problems, and Europe would not necessarily be stronger or more resistant if there were nineteen Germany(s) instead of one. The opposite, most likely, would prove true. Nonetheless, the German model seems to be the default, and any deviation from it a source of fear and anxiety, above all in Germany. These concerns revolve around the fear that (1) Germany will have to pay for the financial failings of other countries , (2) European institutions will make decisions that are not aligned with German interests, and (3) weak returns on investment due to the monetary policy of the ECB will threaten the German retirement system.
- The full article (in French) is available from Le Monde.