Sunday, April 29, 2012

Operation Eyewash

Angela Merkel took another step toward modifying Germany's intransigent image on the Eurozone budget pact.  Growth, she now says, will be part of the agenda at the upcoming European summit, set for late June. The European Investment Bank will figure in this agenda, just as François Hollande said it should. So she has now pre-empted Hollande's not very challenging proposals for a modification of the Merkozy pact. Tant mieux. Maybe Hollande will now be emboldened to ask for a little more, taking advantage of Merkel's pre-emptive surrender. Or perhaps Germany simply recognized that Hollande was asking for so little, and now seems so likely to win, that it made no sense whatsoever to oppose him.

It hardly matters. Events will soon force both leaders to reevaluate their positions. Timidity will not resolve this crisis.

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