Munchau on Germany’s handling of the crisis
In his FT Deutschland column, Wolfgang Munchau makes the point that there is a long tradition of sheer incompetence at the top echelons of the German government, when it comes to the handling of international financial crises.
Even after the various currency crises of the 1970s until the 1990s, there is nobody in the finance ministry, let alone the chancellor, with even a rudimentary understanding of global financial markets, and the subtle interactions between finance and politics.
What is showing in each of the crises that Germany has a fundamentally different understanding of the monetary union, and that both the German public, but in particular the country’s political classes are simply not prepared for life in a monetary union under bad weather.
He also makes the point that the European Council is not a suitable institution to run economic policy.