Germany takes cover from Trump in Eurozone and decides to pay for it

After the calamitous G7 Summit of Quebec, last week, the six world leaders stood by their joint Communiqué, although Donald Trump withdrew his support from it. Foto: Bundesregierung/Denzel

Nobody in Germany doubts it any more that Donald Trump’s America is not a friendly country and market any more, or a guarantor of European security, as was the case for the last 70 years after WWII. To ward off any confusion about that, the German ambassador to the US made a clear statement. Peter Wittig, speaking to the prestigious business news group ‘Handelsblatt Global’ said “The US government is saying goodbye to the post-war tradition of the West as a community of like-minded nations.” He also added that the world is changing dramatically after Trump was sworn in as President of the US.

Chancellor Angel Merkel has understood that since her first visit to the White House in March 2017. On 20 March 2017, the European Sting wrote in the first paragraph of its leading article, “The German Chancellor Angela Merkel returns to Berlin with a bill her country must pay to the US. The check was handed over to her personally by the American President Donald Trump last Friday at the White House…. In a very clear manner he (Trump) estimated what Germany owes to NATO, and indirectly to the US.”

An equally aggressive statement was aired then in their common Press conference about trade. The ‘America first’ President went even further and told Merkel that “Germany had done a much better job than the (trade) negotiators for the US and we have to even that out, not to win just want fairness”. Trump clearly meant the US is to further punish the imports of German products.

Targeting the automotive sector

For very good reasons then, Berlin expects soon an American move in the automotive sector, punishing the imports of cars and tracks. Such a hostile action can cut down Germany’s GDP by a noticeable fraction, given the importance of this sector in the economy. At the G7 Summit of Quebec, Canada, things became even more hostile. Trump tweeted his withdrawal from the leaders’ final communiqué he had just signed, while flying to Singapore for the historic meeting with the North Korean leader Kim Jong-un.

The reason for this new full U-turn in Trump’s attitude was, in the face of it, a negative comment by Canada’s Prime Minister Justin Pierre Trudeau. Trump said he reacted to a Trudeau comment about the recent US tariffs on imports of steel and aluminum. Apart from this though, the US President  clearly wanted to undermine both the very institution of the G7 and the gathering of the six western leaders.

Undermining global institutions

He characteristically delayed his arrival and also rushed to leave, after he threw some very negative comments about the world order to the six leaders regarding trade and international relations. His intentions were clearly to discredit the role of the G7, after having directly defamed the World Trade Organization.

Not to forget, the US under Trump doubts and even disgraces the role of the very United Nations. It’s as if Trump wants to tell the world, those international organizations do not anymore play a role. So, they do not bound the US in her international actions and reactions.

Germany got the message

For very good reasons then, Angela Merkel, after coming back from Canada, rushed to tell her compatriots that their country has to change the way it sees the world. She hurried to appear at a TV show on Sunday, just after touching down from the Canada flight. In an obvious negative mood about Germany’s relations with the US and the country’s position in the now unraveling Western alliance, she said “We won’t let ourselves be pushed around time and again. We will act.” She added “First, there is loyalty to our own nation, but secondly, there should be loyalty to the European Union.” What else could have stated she, after having heard Trump saying “might double down on import tariffs by hitting the sensitive auto industry”.

Under normal conditions, devotion to one’s country and for a German leader the loyalty to European Union do not need to be reminded. Merkel, however, stressed that together with airing a resounding decision to react to the American aggressiveness. For that though, she needs the European Union or more precisely France. In short, Germany recognizes there is no other place to take cover from the American bombs than in Eurozone. But Macron holds the key to this bunker.

Taking cover in the EU

This brings us to what Emmanuel Macron, the President of France did in the calamitous Quebec G7 Summit or what he had to say about it. For one thing, Macron had a long exclusive meeting with Trump, that no one else from the other five leaders had the opportunity to share (Germany’s Angela Merkel, Britain’s Theresa May, Canada’s Justin Trudeau, Japan’s Abe Shinzo and Italy’s Giuseppe Conte).

According to Reuters, “When the two leaders finally met late in the day, Macron was first to reach out to shake Trump’s hand and the last to let go, gripping it so tight his fingers left white marks – a reprise of the long, exaggerated handshake that marked the first meeting between the two leaders last year”. Macron doesn’t hide or rather, advertises his special relation with the Trump, along with France’s strong relationship with the US.

Macron’s conditions

It’s even more interesting to observe what Macron had to say about Trump after the G7. “I want to say sometimes we disagree, but we share I’d say common concerns and common values and we share the willingness to deliver results together.” Compare this statement with what Merkel had to tell her compatriots after returning from Canada. More or less she estimates that the West as a political alliance doesn’t exist anymore and doesn’t play the role it had after WWII. America is not an ally ready to protect Europe in the same manner as it would protect the American soil; not any more.

Merkel rightfully sees global disarray and Germany has to re-position herself, hopefully in the closest possible association with France; of course in the context of the Eurozone. Actually, there is no other secure ‘lebensraum’ for Berlin to direct its formidable export machine. Mind you, exports are the lifeline of Germany and the country needs lots of them in order to safeguard her well-being.

Berlin decides to pay

However, Macron loudly and decisively accused Germany of ‘fetishism of surpluses’. He pointed to Merkel that Germany’s trade surpluses are the deficits of others and he concluded this arrangement cannot continue. That’s why he has proposed deep reforms in the Eurozone and the EU. He demands the creation of a European Ministry of Finance with macro-economically important resources and a common euro area guarantee scheme of bank deposits.

Until last week, Berlin had been decisively opposing both options, fearing they lead to sharing the debts of the ‘lazy’ Southerners, including the French. Last week, though, Merkel broke this barricade and appeared ready to negotiate both Macron ideas. It seems the harder the US pusses Germany around, the more Berlin is ready to negotiate with Paris, about how much Germany must pay to keep Eurozone running and buy German.

In any case, this is going to be a long hot summer during which Germany has to find a way to recycle her surpluses. And this has to be done in a politically acceptable manner without and within the country, given the adverse conditions all over Europe and more specifically in Italy and elsewhere in the South.

 

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

G7 summit: Trump Vs. G6 leaders on trade and climate change

Switzerland to favour EU citizens in immigration quotas as the risk of a new referendum looms

“BEUC cautions against TTIP that would seek to align EU and US chemicals management frameworks”

Is the ECB ready to flood Eurozone with freshly printed money?

EU Commission: a rise in wages and salaries may help create more jobs

Big impact vs big exit: the social side of the start-up game presented at the WSA Global Congress in Vienna

EU Parliament: ECB accountable for not supporting real economy

Will the three major parties retain control of the new EU Parliament?

Has the treacherous theory about the ‘French patient’ finally prevailed?

Historical success for the First ever European Presidential Debate

After the Italian ‘no’ and the Brexit, Germans must decide which Europe they want

The world has made spectacular progress in every measure of well-being. So why does almost no one know about it?

Chinese “BeiDou” GPS goes to market

The next EU President will first have to drink his tea at Downing Street

How biotechnology is evolving in the Fourth Industrial Revolution

Intel @ European Business Summit 2014: Better decisions now, the new business dashboard 

Migration crisis update: lack of solidarity not only among EU leaders but also EU officials

From inconvenience to opportunity: the importance of international medical exchanges

Afghanistan: UN envoy urges further extension of ceasefire with Taliban, as Eid ul-Fitr gets underway

German political spillovers: ECB’s Draghi resists first attacks by AfD

A Valentine’s Special: heart has nothing to do with it, it’s all Brain

ECB settles the bank resolution issue, makes banking union tangible

EU-Russia relations: the beginning of a warmer winter?

European banking stress tests 2014: A more adverse approach for a shorter banking sector

Is history a new NATO weapons against Russia?

The IMF overstates the risks for Eurozone and downgrades the threats for the US economy

Here are 4 of the most politically charged World Cup games ever played

Military escalation will have ‘serious consequences’ for Yemeni civilians, warns UN Special Envoy

EU-Ukraine Free Trade Agreement sees the light as Moscow’s reaction once more looms

Glaringly false reassurances about the repercussions of the EU-US free trade agreement

A Sting Exclusive: “Regional Policy: a fully-fledged investment policy”, Commissioner Cretu reveals live from European Business Summit 2015

MWC 2016 LIVE: 5G to embrace unlicensed bands and Wi-Fi

Hollande protects the euro from the attacks of extremists

Is Britain to sail alone in the high seas of trade wars?

A new world that demands new doctors in the fourth industrial revolution

“China will strive to enhance the performance of economic growth”, President Xi highlights from the World Economic Forum 2017 in Davos

Greece lost a month that cannot be found neither in “mini Summits” nor in Berlin

Ethiopia will soon introduce visa-free travel for all Africans

The miserables and the untouchables of the economic crisis

How will Brexit affect higher education in the EU?

Paris agreed with Berlin over a loose and ineffective banking union

Banks, insurance giants are free again to abuse the real economy

World Health Organisation and medical students: is there any room for improvement?

China’s New Normal and Its Relevance to the EU

Education and Training: where do we stand in 2014?

The European Sting @ European Business Summit 2014 – the preview

Let’s Learn

Migration Crisis: how to open the borders and make way for the uprooted

Migration has set EU’s political clock ticking; the stagnating economy cannot help it and Turkey doesn’t cooperate

This crisis cannot be confronted with statistics

The DNA of the future retail CEO

“Fortress Europe”, “Pegida” and its laughing stocks

Warmongers ready to chew what is left of social protection spending

US-North Korea summit in Singapore ‘a promising development’ says Guterres

UN warns of ‘deteriorating climate’ for human rights defenders in Guatemala

The European Sting @ Mobile World Congress 2014, Creating What’s Next for the World. Can EU Policy follow?

EDRi @ European Business Summit 2014: Digital Citizenship in Brussels – the case of Net Neutrality

Are you breathing plastic air at home? Here’s how microplastics are polluting our lungs

Trump questions US – Europe kinship, approaches Russia

Here’s how China is going green

More Stings?

Trackbacks

  1. […] Germany takes cover from Trump in Eurozone and decides to pay for it  The European Sting […]

  2. […] Germany takes cover from Trump in Eurozone and decides to pay for it  The European Sting […]

  3. […] Germany takes cover from Trump in Eurozone and decides to pay for it  The European Sting […]

  4. […] Germany takes cover from Trump in Eurozone and decides to pay for it  The European Sting […]

  5. […] Germany takes cover from Trump in Eurozone and decides to pay for it  The European Sting […]

  6. […] Germany takes cover from Trump in Eurozone and decides to pay for it  The European Sting […]

  7. […] Germany takes cover from Trump in Eurozone and decides to pay for it  The European Sting […]

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s