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Angela Merkel Faces Monumental Test of Leadership After Greek Vote Angela Merkel Faces Monumental Test of Leadership After Greek Vote
(about 5 hours later)
BERLIN — As chancellor of Germany, Angela Merkel leads a nation that prizes fiscal rectitude and adherence to the rules, and, after pledging tens of billions in bailout programs for five years, has expressed scant sympathy for Greece’s demand for more financial help. BERLIN — As chancellor of Germany, Angela Merkel leads a nation that prizes fiscal rectitude and adherence to the rules, and, after pledging tens of billions in bailout programs for five years, has expressed scant sympathy for Greece’s demand for more financial help.
As de facto leader of Europe, Ms. Merkel faces a very different set of responsibilities, starting with maintaining European unity in general and holding the euro together in particular.As de facto leader of Europe, Ms. Merkel faces a very different set of responsibilities, starting with maintaining European unity in general and holding the euro together in particular.
In the wake of Greece’s landslide vote on Sunday to reject bailout terms that had been offered by its creditors, Ms. Merkel now confronts greater pressure than ever to resolve those clashing sensibilities — a challenge that will test her leadership abilities and help determine Europe’s direction at a pivotal moment. In the wake of Greece’s landslide vote on Sunday to reject bailout terms that had been offered by its creditors, Ms. Merkel now confronts greater pressure than ever to resolve those clashing sensibilities — a challenge that will test her leadership abilities and help determine Europe’s direction at a crucial moment.
“This has taken on a political dimension that far exceeds the economics,” said Jan Techau, director of Carnegie Europe, a research group based in Brussels. “This is now about all the basic tenets of European integration — the balances between the economic and the political, between toughness and solidarity, whether Europe is still an example in the world for peaceful resolution, whether the southeastern flank holds.”“This has taken on a political dimension that far exceeds the economics,” said Jan Techau, director of Carnegie Europe, a research group based in Brussels. “This is now about all the basic tenets of European integration — the balances between the economic and the political, between toughness and solidarity, whether Europe is still an example in the world for peaceful resolution, whether the southeastern flank holds.”
The big question, Mr. Techau said, is this: “Can she guide Europe out of this with a political vision that goes beyond the mere economic considerations?”The big question, Mr. Techau said, is this: “Can she guide Europe out of this with a political vision that goes beyond the mere economic considerations?”
Her initial response on Monday was typically cautious, giving little indication of what price she judged Europe would be willing to pay to keep Greece in the fold. Ms. Merkel spoke with Prime Minister Alexis Tsipras of Greece on Monday morning and then made plans to meet later in the day with President François Hollande of France, who has signaled considerably more willingness than she has to compromise with Greece. Her initial response on Monday was cautious, giving little indication of what price she judged Europe would be willing to pay to keep Greece in the fold. Ms. Merkel spoke with Prime Minister Alexis Tsipras of Greece on Monday morning and then made plans to meet later in the day with President François Hollande of France, who has signaled more willingness than she has to compromise with Greece.
Speaking in Paris on Monday evening at the Élysée Palace, Ms. Merkel and Mr. Hollande each said that Europe was open to negotiations with Athens but the German leader struck a tougher tone. She said that just as Greek voters have a right to make their voices heard, the views of other democracies in the European Union also have to be respected. Speaking in Paris on Monday evening at the Élysée Palace, Ms. Merkel and Mr. Hollande each said that Europe was open to negotiations with Athens, but the German leader struck a tougher tone. She said that just as Greek voters had a right to make their voices heard, the views of other democracies in the European Union also have to be respected.
She added that Europe had offered a “generous” bailout deal — the one rejected by Greek voters on Sunday — and “we are now waiting for very specific proposals from the Greek prime minister to enable Greece to return to prosperity.”She added that Europe had offered a “generous” bailout deal — the one rejected by Greek voters on Sunday — and “we are now waiting for very specific proposals from the Greek prime minister to enable Greece to return to prosperity.”
Her spokesman, Steffen Seibert, said earlier Monday in Berlin that there was “no basis” for further discussions with Greece, at least until Mr. Tsipras puts a new proposal on the table. Her spokesman, Steffen Seibert, said earlier Monday in Berlin that there was “no basis” for further discussions with Greece, at least until Mr. Tsipras put a new proposal on the table.
The impasse produced by Greece’s referendum led Bild, Germany’s best-selling newspaper and a noisy critic of what it sees as spendthrift Greek ways, to declare the Greek vote to be Ms. Merkel’s “first big defeat.” The impasse produced by Greece’s referendum led Bild, Germany’s best-selling newspaper and a critic of what it sees as spendthrift Greek ways, to declare the Greek vote to be Ms. Merkel’s “first big defeat.”
Mr. Seibert said the Greek vote was not a defeat for Ms. Merkel but simply a “clarification” of the Greek position. He offered no suggestion that the vote had shaken Germany’s commitment to austerity policies that Mr. Seibert said had worked well in Spain, Portugal and Ireland.Mr. Seibert said the Greek vote was not a defeat for Ms. Merkel but simply a “clarification” of the Greek position. He offered no suggestion that the vote had shaken Germany’s commitment to austerity policies that Mr. Seibert said had worked well in Spain, Portugal and Ireland.
“All of those are political successes that we reached together,” Mr. Seibert said. “They all helped to put Europe in a more secure, improved position.”“All of those are political successes that we reached together,” Mr. Seibert said. “They all helped to put Europe in a more secure, improved position.”
More than anyone else, Ms. Merkel is being looked to for direction as Europe faces an array of challenges beyond Greece. Britain is planning a referendum on its membership in the European Union, threatening the departure of one of the bloc’s largest members.More than anyone else, Ms. Merkel is being looked to for direction as Europe faces an array of challenges beyond Greece. Britain is planning a referendum on its membership in the European Union, threatening the departure of one of the bloc’s largest members.
Russia’s re-emergence as a security threat has exposed rifts within Europe about how aggressively to confront Moscow. There is no consensus about how to deal with the migrants washing into southern Europe — in growing numbers — from Africa and the Middle East, a concern that has become greater with the prospect of Greece falling deeper into crisis.Russia’s re-emergence as a security threat has exposed rifts within Europe about how aggressively to confront Moscow. There is no consensus about how to deal with the migrants washing into southern Europe — in growing numbers — from Africa and the Middle East, a concern that has become greater with the prospect of Greece falling deeper into crisis.
Nationalist and populist movements are upending traditional politics in many countries, underscoring the debate over whether the union has become distant from the concerns of its citizens and even fundamentally undemocratic.Nationalist and populist movements are upending traditional politics in many countries, underscoring the debate over whether the union has become distant from the concerns of its citizens and even fundamentally undemocratic.
That the stakes go far beyond just longtime arguments over the wisdom or otherwise of austerity was made clear Sunday evening when far-right populist politicians across Europe cheered the referendum victory for Greece’s left-wing government, led by Mr. Tsipras’s Syriza party, as evidence that the so-called European project was crumbling.That the stakes go far beyond just longtime arguments over the wisdom or otherwise of austerity was made clear Sunday evening when far-right populist politicians across Europe cheered the referendum victory for Greece’s left-wing government, led by Mr. Tsipras’s Syriza party, as evidence that the so-called European project was crumbling.
This project, Nigel Farage, leader of Britain’s U.K. Independence Party, rejoiced in a message posted late Sunday on his Twitter account, “is now dying. It’s fantastic to see the courage of the Greek people in the face of political and economic bullying from Brussels.” This project, Nigel Farage, leader of Britain’s U.K. Independence Party, rejoiced in a message posted late Sunday on his Twitter account, “is now dying.”
The joy voiced by Mr. Farage and by Marine Le Pen, leader of France’s far-right National Front, flowed from a deep pool of nationalism across Europe. Ms. Merkel and other sitting leaders see that as a threat not only to their own political fortunes but also to decades of laborious work since the end of World War II to purge Europe of its old demons and resolve disputes between nations in the clunky mechanisms of the European Union. “It’s fantastic to see the courage of the Greek people in the face of political and economic bullying from Brussels,” he continued.
The joy voiced by Mr. Farage and by Marine Le Pen, leader of France’s far-right National Front, flowed from a deep pool of nationalism across Europe. Ms. Merkel and other sitting leaders see that as a threat not only to their own political fortunes but also to decades of laborious work since the end of World War II to purge Europe of its old demons and resolve disputes among nations in the clunky mechanisms of the European Union.
This constant quest for consensus leads to muddle and deters decisive leadership by Germany or anyone else, and could be on display again Tuesday when national leaders meet to try again to hash out a strategy for dealing with Greece.This constant quest for consensus leads to muddle and deters decisive leadership by Germany or anyone else, and could be on display again Tuesday when national leaders meet to try again to hash out a strategy for dealing with Greece.
Syriza and its cheerleaders on the both the left and right elsewhere in Europe have cast the Greek vote as a long-overdue democratic revolt against policies of austerity championed by Germany. But this, said Raoul Ruparel, co-director of Open Europe, a research group in London, misreads Europe’s German-led response to a Greek crisis that began more than five years ago. Syriza and its cheerleaders on both the left and the right elsewhere in Europe have cast the Greek vote as a long-overdue democratic revolt against policies of austerity championed by Germany. But this, said Raoul Ruparel, co-director of Open Europe, a research group in London, misreads Europe’s German-led response to a Greek crisis that began more than five years ago.
Economic arguments, he added, have “often been on Greece’s side” in its complaints about the pain inflicted by austerity “but this has never been about economics but politics” in a system in which Greece is just one of 19 democratic countries, each with its own voters, that use the euro.Economic arguments, he added, have “often been on Greece’s side” in its complaints about the pain inflicted by austerity “but this has never been about economics but politics” in a system in which Greece is just one of 19 democratic countries, each with its own voters, that use the euro.
At home, Ms. Merkel’s challenges in winning support for any kind of accommodation with Greece are personified by her finance minister, Wolfgang Schäuble.At home, Ms. Merkel’s challenges in winning support for any kind of accommodation with Greece are personified by her finance minister, Wolfgang Schäuble.
Mr. Schäuble, who over recent months has made plain his preference for Greece leaving the euro, last week bared his skepticism about any deal with Greece in a fiery speech in the German parliament. Mr. Schäuble, who over recent months has made plain his preference for Greece leaving the euro, last week bared his skepticism about any deal with Greece in a fiery speech in the German Parliament.
“A currency union in which one partner says, ‘I don’t care, I won’t do anything and I won’t stick to anything which has been agreed,’ cannot work,” he said. “Trust and dependability are a basic condition when it comes to institutions.” Since the current government in Athens took power on Jan. 25, things have worsened “by the day and by the hour,” he said.“A currency union in which one partner says, ‘I don’t care, I won’t do anything and I won’t stick to anything which has been agreed,’ cannot work,” he said. “Trust and dependability are a basic condition when it comes to institutions.” Since the current government in Athens took power on Jan. 25, things have worsened “by the day and by the hour,” he said.
That stance puts pressure on Ms. Merkel domestically, emboldening politicians who believe that Germany has erred not by pushing too hard for austerity in Greece but by tolerating modest steps towards softer terms. When German lawmakers were last called upon to vote on extending the Greek bailout in February, 29 deputies from her center-right bloc broke ranks and opposed the government. That stance puts pressure on Ms. Merkel domestically, emboldening politicians who believe that Germany has erred not by pushing too hard for austerity in Greece but by tolerating modest steps toward softer terms. When German lawmakers were last called upon to vote on extending the Greek bailout in February, 29 deputies from her center-right bloc broke ranks and opposed the government.
Since then, conservatives’ fury at Athens has only mounted. Mr. Schäuble, who last week for the first time bested the chancellor in a well-regarded political popularity poll, is an essential partner for Ms. Merkel in keeping the anger under control. Since then, conservatives’ fury at Greece has only mounted. Mr. Schäuble, who last week for the first time bested the chancellor in a well-regarded political popularity poll, is an essential partner for Ms. Merkel in keeping the anger under control.
In that sense, Ms. Merkel may even be relieved by Sunday’s vote, which is likely to buy time before she would have to ask Parliament to approve another Greek bailout. In that sense, Ms. Merkel may even be relieved by Sunday’s vote, which is very likely to buy time before she would have to ask Parliament to approve another Greek bailout.
And even some domestic critics appeared more sympathetic on Monday, apparently stunned by the strength of Greek resistance to the rest of Europe.And even some domestic critics appeared more sympathetic on Monday, apparently stunned by the strength of Greek resistance to the rest of Europe.
Asked on German television whether the chancellor had failed, Wolfgang Bosbach, a Merkel deputy who has opposed her over Greece, said that “what has failed are the attempts of the Greek government to reform the country in the last five years.”Asked on German television whether the chancellor had failed, Wolfgang Bosbach, a Merkel deputy who has opposed her over Greece, said that “what has failed are the attempts of the Greek government to reform the country in the last five years.”
“The chancellor did everything that was humanly possible to help the Greeks,” he said. “But there is a lack of political strength” in Athens. “And you cannot chalk that up to Angela Merkel.”“The chancellor did everything that was humanly possible to help the Greeks,” he said. “But there is a lack of political strength” in Athens. “And you cannot chalk that up to Angela Merkel.”
As methodical abroad as she is at home, Ms. Merkel seems to be concentrating first in her diplomatic rounds on Germany’s firmest ally, France. In addition to her own visit to Paris on Monday, Mr. Schäuble headed to Warsaw for talks with his French counterpart. Ms. Merkel seems to be concentrating first in her diplomatic rounds on Germany’s firmest ally, France. In addition to her own visit to Paris on Monday, Mr. Schäuble headed to Warsaw for talks with his French counterpart.
Together, France and Germany represent almost half of the economy of the 19-nation eurozone. While Mr. Hollande and other officials in Paris have made more conciliatory noises toward Greece over the last week, no nation using the euro has indicated it will side with Greek demands for large-scale debt restructuring, or much in the way of further loans. Together, France and Germany represent almost half of the economy of the 19-nation eurozone. No nation using the euro has indicated it will side with Greek demands for large-scale debt restructuring, or much in the way of further loans.
In a fleeting appearance before reporters on Monday evening in Paris, Ms. Merkel and Mr. Hollande stressed that the 18 non-Greek countries that use the euro would have their say at Tuesday’s eurozone summit meeting. Any proposals Greece has, Ms. Merkel said, should be on the negotiating table this week.In a fleeting appearance before reporters on Monday evening in Paris, Ms. Merkel and Mr. Hollande stressed that the 18 non-Greek countries that use the euro would have their say at Tuesday’s eurozone summit meeting. Any proposals Greece has, Ms. Merkel said, should be on the negotiating table this week.
“We don’t have much time,” Mr. Hollande said. “There is urgency — for Greece, and for Europe.”“We don’t have much time,” Mr. Hollande said. “There is urgency — for Greece, and for Europe.”