Germany Sees the Need to Downsize Europe

John Thys/AFP/Getty Images

Germany Sees the Need to Downsize Europe

Germany is ready to push nations out of the eurozone, say analysts, after Germany and France threatened to kick Greece out last week.

“Only a short while ago, any idea of a Greek exit from economic and monetary union (emu) was rejected by Eurocrats as entertained only in the ravings of madmen,” wrote David Marsh for the Wall Street Journal’s Market Watch. “Yet it suddenly became bitter reality after Athens Premier George Papandreou’s since-rescinded referendum call.”

Now some experts think Germany will push Europe down this path.

Jim O’Neill, chairman of Goldman Sachs Asset Management, told the Sunday Telegraph: “The Germans want more fiscal unity and much tougher central observation—with the idea of a finance ministry.”

“With that caveat, it is tough to see all countries that joined wanting to live with that—including the one that is so troubled here,” he said. “If you wind the clock back, it was pretty obvious that economically probably only Germany, France and Benelux of the original joiners were the ones that were ideal for a monetary union.” The future of other nations in the eurozone is “actually questionable,” he said.

“The Greeks have a choice: reforms within the eurozone or no reforms and leave,” German Economics Minister and leader of the Free Democratic Party Philipp Roesler said. “There is no third way.”

“The Greek government must at least understand that at some point our patience will end,” he said.

Germany isn’t going to risk its money to save impoverished nations. “I truly believe that Germany’s political and economic establishment would rather see the eurozone break up than risk its own national prosperity, and political stability, by allowing the [European Central Bank]—and thus, Germany—to backstop the rest of Europe,” wrote Telegraph columnist Liam Halligan.

But a shrinking euro doesn’t mean the end of the euro. As Trumpet editor in chief Gerald Flurry wrote: “Watch closely. Germany will use this crisis to force Europe to unite more tightly. In the process, some eurozone countries will be forced out of the union. When that happens, the pundits will say European unification is dead, that the European Union has failed. Don’t listen to them!”

For the eurozone to unite more closely, some nations will have to leave. As these nations leave, Europe won’t be getting further away from becoming a superstate, but closer.