The spotlight has been on Angela Merkel for the last three months as the euro zone has struggled with its greatest crisis to date. It has not been kind to her.
Merkel has viewed the crisis through a parochial German lens, ever mindful of regional elections in early May. She took incremental steps, delaying bold decision-making and exacerbating the Greek problem, which could have been contained if dealt with early, turning into a raging contagion which strengthened to take down Spain, the fourth largest economy in Europe.
Imagine if Merkel had been Chancellor when the Berlin Wall fell. Can you see her saying that reunification was paramount at any cost? That worthless Ostmarks should be converted into deutsche marks at 1 to 1? I can’t imagine it either…East Germany would still be trying to join the euro…
Leaders are judged by history in how they respond to crises. Merkel will be remember as a failure if history ended today. And the euro is weakened for it. Abandoning the leadership of the eurozone in its critical hour to France’s Sarkozy will haunt her remaining days as Chancellor.
