Germany - the EU’s 'exceptional nation' - sees no need for change

The country's voters show little desire to proactively seek a resolution to the euro crisis.

What’s so special about Germany, anyway? Throughout the euro crisis, Merkel and her colleagues have been at pains to remind the rest of the world that Germany is a eurozone country like any other. It is subject to the same rules as the rest of Europe and faces many of the same challenges. Germans are neither comfortable with being Europe’s hegemon (a "foreign concept", according to Merkel), nor do they have the means to fulfil that role. Germany is, as the Chancellor recently stated, "not the richest country", and they do not think the 'periphery' is so poor as to be incapable of self-help. Through German eyes, their relative economic position today results from shrewd choices they made before the crisis. The 'periphery' must now follow suit.

However, despite Merkel’s protestations, German public opinion shows acute awareness of its position as Europe’s exceptional nation. Germans are well aware of their superior economic position vis-a-vis the rest of the continent. According to the Eurobarometer, the EU’s largely ignored survey of its citizens, 77% think the national economy is doing well versus 26% who think the same of the European economy. Furthermore, as the chart below shows, while Germany may be subject to European rules, there is widespread acknowledgement that they are setting them, or at least driving the policy debate.

The Eurobarometer vividly illustrates the extent to which Germany has deviated from the rest of the eurozone since the crisis began (only Austrians and Finns join Germans in viewing their national economy positively). The survey also shows the degree to which the policy-response to the crisis has been asymmetric. When asked which issues were of most importance to their country, Germans named debt, closely followed by inflation. Conversely, citizens from France and the 'peripheral' countries worry about jobs significantly more than deficits. Eurozone policy has focused almost exclusively on the needs of Germany and the other creditor nations. The chart below, which shows citizens in the 'periphery' feeling largely ignored, reflects this fact, and perceptions of their national economies could barely be worse. French opinion seems to be going the same way. The divergence hints at greater political tension in the euro area – unless policy can be diverted onto a more conciliatory path.

Country interests taken into account in the EU

So what do the Germans want to do with their new-found dominance? Despite being the only country with political capital to spare, the results of the Eurobarometer suggest the political imperative in Germany points worryingly to the status quo. Germans are ultimately satisfied with their economic situation and position of power within the eurozone. Equally, they show little desire to proactively seek a resolution: when asked about eurobonds, Germans are far and away the biggest opponents in the single currency – whereas most of their neighbours support the idea.

In a recent speech, Niall Ferguson argued that Germany is increasingly conforming to the image of its 19th century national personification, 'Deutsche Michel'. Michel, "the victim of unscrupulous neighbours, who picked his pockets and stole the shirt off his back", caricatured Germans’ perception of themselves as an exceptional nation in a continent of poorer, scrounging neighbours. The results of the Eurobarometer graphically illustrate these very fears. The question is whether, following September’s election, Angela Merkel will be willing to reach deeper into Michel’s pockets.

Angela Merkel speaks to supporters during a CDU election campaign rally on August 15, 2013 in Bremen, Germany. Photograph: Getty Images.

Michael Hessel is a political analyst at Absolute Strategy Research, an independent consultancy based in London

Photo: Getty
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The Liberal Democrats are back - and the Tories should be worried

A Liberal revival could do Theresa May real damage in the south.

There's life in the Liberal Democrats yet. The Conservative majority in Witney has been slashed, with lawyer and nominative determinism case study Robert Courts elected, but with a much reduced majority.

It's down in both absolute terms, from 25,155 to 5,702, but it's never wise to worry too much about raw numbers in by-elections. The percentages tell us a lot more, and there's considerable cause for alarm in the Tory camp as far as they are concerned: the Conservative vote down from 60 per cent to 45 per cent.

(On a side note, I wouldn’t read much of anything into the fact that Labour slipped to third. It has never been a happy hunting ground for them and their vote was squeezed less by the Liberal Democrats than you’d perhaps expect.)

And what about those Liberal Democrats, eh? They've surged from fourth place to second, a 23.5 per cent increase in their vote, a 19.3 swing from Conservative to Liberal, the biggest towards that party in two decades.

One thing is clear: the "Liberal Democrat fightback" is not just a hashtag. The party has been doing particularly well in affluent Conservative areas that voted to stay in the European Union. (It's worth noting that one seat that very much fits that profile is Theresa May's own stomping ground of Maidenhead.)

It means that if, as looks likely, Zac Goldsmith triggers a by-election over Heathrow, the Liberal Democrats will consider themselves favourites if they can find a top-tier candidate with decent local connections. They also start with their by-election machine having done very well indeed out of what you might call its “open beta” in Witney. The county council elections next year, too, should be low hanging fruit for 

As Sam Coates reports in the Times this morning, there are growing calls from MPs and ministers that May should go to the country while the going's good, calls that will only be intensified by the going-over that the PM got in Brussels last night. And now, for marginal Conservatives in the south-west especially, it's just just the pressure points of the Brexit talks that should worry them - it's that with every day between now and the next election, the Liberal Democrats may have another day to get their feet back under the table.

This originally appeared in Morning Call, my daily guide to what's going on in politics and the papers. It's free, and you can subscribe here. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.