Captain of our fairy band

There is no doubt Greece is going through hell these days trying to meet the demands of its eurozone partners. Greeks feel humiliated at having to beg for cash. Germany is instantly identified as the culprit. The problem lies on both sides. Mr Schäuble thought he was simply stating the obvious, but in the febrile atmosphere in Athens it was bound to produce an hysterical reaction. As for Mr Papoulias’s response, it reveals a fundamental misunderstanding of modern Germany. Greek politicians are not alone in that.
Postwar Germany is both profoundly provincial and committed to Europe. The federal system keeps central government in check, locked into a system of coalition government that is consensual and slow-moving. Both politics and the bureaucracy are dominated by lawyers (Mr Schäuble is one) who believe passionately in the need for rules and respect for the law. It makes for a confusing mixture of compromise and inflexibility. Mixed messages emerge from the different centres of power, not least from the finance ministry and the chancellor’s office, until they can agree a common line.

Behind the scenes […] some of the brightest minds in the German government have a sense of deep foreboding. Twice in the past year I have found myself sitting next to different senior German officials at a dinner who have proceeded to tell me that the whole single currency was a terrible mistake. Speaking of the euro, one of my companions said: “It seems to me that we have invented a machine from hell that we cannot turn off.” The image was so bleak and Strangelovian that I laughed. But, I am afraid, it’s not really very funny.