German hegemony raises its head

Commentators are debating whether the financial crisis may provide an opening for closer integration of the eurozone, with Germany providing financial assistance to troubled economies. This blog has argued against this scenario, on the grounds that German voters would never pay the price even if the German economy could afford it; and if they did stretch to it, they would be bound to attach conditions; and the other countries would rail against what they would see as the return of German hegemony.

Open Europe today mentions a report in the Irish Times that German Foreign Minister Frank-Walter Steinmeier is considering financial assistance to struggling EU economies as a way for Berlin to "consolidate its position [in the EU] for years to come". The article reports that a new working group will soon decide which countries should be offered help, which has noted that Germany has "much to win" from such assistance.

Leading members of Mr Steinmeier's own Social Democratic Party (SPD) have gone further, says Open Europe, indicating that any assistance to Ireland would require "greater humility" from Dublin and a renewed commitment to the EU from Irish voters in a second Lisbon Treaty referendum. Axel Schäfer, SPD Parliamentary Spokesman on European affairs has said it would be "irresponsible" to discuss aid as long as Ireland does not require it, but he insisted that any possible help would be "conditional on obligations in the European context".

In a leader, the Irish Times notes that "in the interests of the whole system German leaders are willing to respond; but they are determined the policy outcome should be shaped to suit themselves".