Angela Merkel proudly declared that the euro was Germany’s destiny, but will she be able to persaude her fellow Germans to back an Italian for the most important economic post in the EU? Germans are obsessed with controlling inflation ever since their 1920’s nightmare with hyper-inflation. Yet they doubt if a southern European would have the discipline to battle inflation the way they do, especially at a time when the “pigs” demand bailouts from Germany.
If Merkel opposes Mario Draghi, according to an article in Friday, April 29’s edition of the Wall Street Journal, “Germany to Back Italian Central Bank Chief”, she will risk a rift with Sarkozy who has already come out in favor of the Italian. She can still prevent the man from taking the post. No one could get it without Germany’s O.K. But she risks unity, which is necessary to carry out Germany’s economic ambitions.
Germany wants a bigger market for its goods and services. So it may have to compromise.
Angela Merkel, Chancellor of Germany