Germany Remains Concerned over Europe's Future


The battle for Europe will be won or lost in Germany.  On some days recently, it has looked like it might be lost. But that is to underestimate the deep German commitment to the success of European integration based on the rule of law.  If the European Union falls apart, it will likely be due to a return of nationalism and a refusal by the French, British and Dutch to share more sovereignty, rather than to German insistence on fiscal discipline and respect for the rules.

“If the euro fails, then Europe fails,” Chancellor Angela Merkel has repeatedly warned parliament.  The aftermath of the euro zone’s ugly all-night summit on the Greek debt crisis that ended on July 13 with a deal on stringent, intrusive terms for negotiating a third bailout has sent shockwaves across Europe, especially in Germany.

It was the second time in weeks that EU leaders had clashed over fundamental problems they seem unable to solve, after an acrimonious June summit on how to cope with a wave of migrants – many of them refugees from conflict – desperate to enter Europe.  And it has prompted intensive head-scratching in Berlin about how to strengthen European institutions and underpin the euro more durably – an intellectual ferment unmatched in most other EU capitals.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD holds firm above 1.0700 ahead of German inflation data

EUR/USD holds firm above 1.0700 ahead of German inflation data

EUR/USD trades on a firm footing above 1.0700 early Monday. The pair stays underpinned by a softer US Dollar, courtesy of the USD/JPY sell-off and a risk-friendly market environment. Germany's inflation data is next in focus. 

EUR/USD News

USD/JPY recovers after testing 155.00 on likely Japanese intervention

USD/JPY recovers after testing 155.00 on likely Japanese intervention

USD/JPY is recovering ground after crashing to 155.00 on what seemed like a Japanese FX intervention. The Yen tumbled in early trades amid news that Japan's PM lost 3 key seats in the by-election. Holiday-thinned trading exaggerates the USD/JPY price action. 

USD/JPY News

Gold price bulls move to the sidelines as focus shifts to the crucial FOMC policy meeting

Gold price bulls move to the sidelines as focus shifts to the crucial FOMC policy meeting

Gold price (XAU/USD) struggles to capitalize on its modest gains registered over the past two trading days and edges lower on the first day of a new week, albeit the downside remains cushioned.

Gold News

Ripple CTO shares take on ETHgate controversy, XRP holders await SEC opposition brief filing

Ripple CTO shares take on ETHgate controversy, XRP holders await SEC opposition brief filing

Ripple loses all gains from the past seven days, trading at $0.50 early on Monday. XRP holders have their eyes peeled for the Securities and Exchange Commission filing of opposition brief to Ripple’s motion to strike expert testimony.

Read more

Week ahead: FOMC and jobs data in sight

Week ahead: FOMC and jobs data in sight

May kicks off with the Federal Open Market Committee meeting and will be one to watch, scheduled to make the airwaves on Wednesday. It’s pretty much a sealed deal for a no-change decision at this week’s meeting.

Read more

Majors

Cryptocurrencies

Signatures