Can a president who's elected on a promise to be normal deal with Europe in the throes of a crisis of abnormality?
With France's Francois Hollande taking office, an all-star panel debates "Mr. Normal" and how the politics will reverberate across Europe in this excerpt from the past week's "Fareed Zakaria GPS." Watch the video above.
And is Germany taking too much of the anger? Here's what Josef Joffe, Die Zeit editor, had to say:
ZAKARIA: Josef Joffe, you know that much of the rhetoric and the anger is directed at Germany. The idea is the Germans are forcing all this austerity on Europe, European governments having forced to cut their budgets. It's causing misery, unemployment. It's even causing bigger budget deficits.
But you've sort of defended the German position, isn't it fair to say?
JOSEF JOFFE, EDITOR, DIE ZEIT: Well, I mean, Angela Merkel makes for a nice whipping boy for problems which are deeply rooted in the societies that we've just heard about [France, Greece, Spain]. ...
The problem is that the rest of Europe is ganging up on Germany and that German economic miracle, the export miracle, which everybody is complaining about, has a very simple reason. German unit labor cost didn't rise almost at all. In the last decade, it went up by 35 percent in Italy, same number in the Iberian countries and it went through the roof in Ireland.
One last point, the Irish, who went through the roof, they had 50 percent increase in unit labor cost have now come down to just 25 percent increase. So, in other words, it can be done if you put your mind to it.
© 2012 Cable News Network. Turner Broadcasting System, Inc. All Rights Reserved.
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Bang on the money...the solution the powers that be always tell us we need involve "more more more".
It's why they exist...bunch of spoiled shildren. It will not get better until they actually change and thelonger they put it off the worse it will be.
The decline of the vote for Merkel's party indicated strong dismay at the policies of her party. In national opinion polls, she – personally – still remains popular. Furthermore, much of the election was fought over public spending, with the Social Democratic Party, the SPD asserting the importance for education, it has been gaining more votes.
There were however signs of resentment among Germans. who complained, that swimming pools in their towns in the West were being closed for lack of money while high spending continued in the old East Germany.
Nevertheless the victory of the Pirate Party might be her hope or despair. With 8% of the votes, the Pirates now get seats in a fourth regional parliament in Germany. Its rise probably threatens the left parties more than Merkel's centre right party. The emergence of this party also signals a disgruntlement with mainstream politics. Perhaps Merkel's party would have to re-invent itself.
Indeed, "Angela Merkel makes for a nice whipping boy for problems which are deeply rooted in the societies that we've just heard about [France, Greece, Spain]". and her party has suffered a number of setbacks in regional elections. As down to earth as she is, she would say to herself, "eine Schwalbe macht doch keinen Sommer – a swallow doesn't make a summer".
Not shockingly, cutting budgets led to a collapse in economic growth, and larger debt levels then these countries started with.
Then again, people like me said that would happen from the beginning: Decreasing budgets will put more people out of work, decreasing economic growth [enlarging the debt as a percent of the economy] and putting more people out of work [less tax revenue AND more people on government assistance]. Hence, no progress on the deficit, backwards progress on the debt, and higher unemployment and less economic growth.
You want to get rid of debt? You want the recovery to get moving? Then make sure you have a middle class capable of spending in the free market. Consumer spending drives all economic activity.
The idea that giving the middle class LESS money and putting MORE people out of work will somehow fix your budget situation is idiocy at the highest levels. Any short term budget relief vanishes when the economy turns downhill, reopining the budget problem again. Then again, maybe its no shock the last FOUR GOP presidents grew the debt as a percentage of GDP...
The problem with your arguement is that the last 4 GOP Presidents didn't cut spending, they increased it which lead to inflated debt. The other problem with your arguement is that most of those budgets were put together by mostly Democrat Congresses under a GOP President. Clinton had a mostly GOP Congress and guess what happened to the debt anfd the economy.
spot on!
Germany is an export leader in Europe. But German main clients are the EU countries. If the Euro crumbes, so will markets in Europe, and the German economy will downfall. Greece only represents 2 percent GPD. Would USA let down Connecticut for debt bail, risking bankruptcy for all? Plus this is not a question of socialism or not. I defy anyone who can prove that a German is working harder than an Italian, French, or Greek salaryman. Time is to stick together.
Germany exports high-end products. But the European market absorbs just approx. 40% of its export capacities.
defy? um unemployment statistics would imply Germany is working more... hard is an adjective. can't really prove how hard someone is working, but germany is apparently better at keeping people employed lately.
SIEG HEIL!
Europe gangs up on Germany because Germany has waged 2 world wars to gain dominion of the continent. To make matters worse, Germans have a tradition of scientific and engineering innovation and they always have the edge in manufacturing and exporting the best stuff. The peripheral European countries have never matched Germans in innovating anything (except for culture, food, wine, gambling and then art of fine living
).
Germans are once again leading Europe in renewable energy and they will slowly take over the growing environmental problems of the world and actually SOLVE them through innovation. Not just Europe, but the world as a whole is going to face a new "German problem" in the 21st century and possible nightmares of the 4th Reich. As for the Germans, they can't help it. It's in their nature to dominate.
That is the most uneducated opinion I have seen in a while. I am a German immigrant. I can tell you with absolute certainty that Germany's financial power is due to resources. The German people do not need to purchase raw materials to manufacture their products. In addition, their education system targets ability groups. They have three different levels of highschool. (Trade school, Middle School and Gynasium <-College level)
German's do not have a propensity for "domination". They almost spoke french at one point in history. Their military prowess was just recently established, much like the nation itself. It wasn't unified until the mid 1800. It's younger than America.
I am german, work for a german company and I dominate
Um, was this written by Borat? How could you believe any of that?
Look at Europe. The only way you can have successful socialist regimes (as far as that goes) is if the population is HARD working. Otherwise, you end up with Spain, Greece and Portugal.
apd is 100% correct, Germany will dominate Europe iagain n the near future, and then again try to dominate the world. All they need is another charismatic leader and they will follow.
No problem. We will have be waiting for the nazis if they try and pull another stunt . They lost the Great Patriootic War and the third time there will be no mor germania hunland once and for all .
"We will have be waiting"?
Ha ha ha, I hope your country's military is smarter than you are... otherwise you guys are screwed.
perhaps your history should extend beyond the 20th century...france was a global trouble maker in the 19th century and several other centuries...why not fear them???
I guess, because this person apparently never read about history before 1900.
APD, you forget Switzerland, a neighbor of Germany's which is hardly begging for Germany's help. Partly due to the fact that they were smart enough to stay out of the Euro currency system.
Say goodbye to the EURO. Unless EUROPE becomes the United States of Europe (or something similar), the EURO is doomed to fail. Some of the other countries can not keep up with Germany economically, but they can not devalue their own currency because there are artificially tied together by the EURO.
Amazing how similar 2012 is to 1912:
1) Germany is the largest and most economically powerful country in Europe (hardly a human rights violation!)
2) Most of the rest of Europe is deeply resentful and can't wait to put Germany back in its "place."
At least this time there are fewer dreadnoughts and machine guns around. Let's hope Angela Merkel is far more diplomatically adept than the Kaiser was.
And...capitalism wins again. Europe, stops being a bunch of petulant whiners, put on your big girl panties, and follow Germany's example if you care anything about your people. Making a few sacrifices now will prevent you from HAVING to make many unwanted sacrifices later.
Greece is in this mess because Goldman Sachs pretty much destroyed their economy. Last I checked, speculative banking is capitalism.
Meanwhile, real socialist countries, like Sweden and Finland, are doing fine, while Capitalist powerhouses like USA and the UK are recovering from a crippling recession.
Greece us a ness not because of Goldman Sucks.
Greece is a mess because of GREEKS.
And the only thing that Sweden or Finland have contributed to the planet is IKEA.
So don't be pointing to them as an example of how great socialism is.
The Germans are ahead because they WORK TO GET AHEAD.
Unlike the idiocy of socialism which encourages the lazy to remain lazy.
Socialism is a cancer that allows the lazy to prey on the industrious.
No, the lack of merit-based employment, rampant tax dodging, 25% of the work force employed by the government, and ridiculous pensions for 40 years olds as well as pensions for dead people. None of the above make for good productivity or output. Greece was hit hard by Goldman Sachs, but lets not pretend that what happened over there wasn't going to happen a few years down the road
in response to Pliny, Sweden and Finland, (per capita) outproduce almost every other nation in the world in terms of scientific discoveries in math, science, engineering, and medicine. Discoveries that foster new technology and economic growth. Your comment is truly ignorant. You forget to mention, that Germany is in many ways a socialist country. Greece is failing due to poor decisions, not because it is socialist.
Are you blaming the Jews AGAIN??? Perhaps trying to be a socialist government without making your people pay the taxes they owe might have a little something to do with Greece's problems, nicht wahr?
Germany are the hunter/gatherers and France, Italy, Greece, Spain, etc.. are the ones sitting around the campfire waiting for the food.
Watch out - the last time Europe ganged up on Germany economically it didn't end well for anyone.
It ended up pretty well for the USA.
True. After Europe was leveled 1/2 of the manufacturing capability in the world was in the United States.
So, if we play our cards right there will be another world war in Europe and ½ the worlds manufacturing will be back in the US. Oh wait, we were in the business of manufacturing then. So if we play our cards wrong and there is a world war in Europe half the worlds manufacturing may shift to China?
What are you talking about don't tread on me. Just ask apple, microsoft, and many others 3/4 of the worlds manufacturing is in China already.
All other Europeans being jealous of Germany... what else is new...
Europe would have been better off all speaking German if you get my drift!
To hell with that idea, Germany has got its crap together, i can't believe out of everyone they are giving Germany the shaft. Germany is keeping the Euro alive! Antagonizing them could motivate them to go back on the Deutsch Mark, then you're really up a very specific creek without adequate propulsion
The one responsibility you wouldn't want during Europalypse 2012 is security for the German embassy in Athens.
Germany is the father of Europe. Ganging up on daddy is not a good idea. The daddy can take away the credit cards and so unemployed kids can be on the streets hungry. Party that pays for your lifestyle has a say in how you spend the money.
Sprechen Sie Deutsch?
Ja, natuerlich. Ich bin dort geboren, bin aber Amerkanischer Buerger, seit langen Jahren.
Bier!!!!! Frauen!!!!! und bleib raus die linken spur..! ich will schnell fahren!!!!
Hate Germany all you want but guess what unlike the Catholic countries Germany actually has money. Socialism is great until you can no longer spend other people's money.
@asdf – I did not know that Greece was a "catholic" country....
Guess what? Don't want to disillusion you, but there's plenty of Catholics in Germany.
Germany also have a large Catholic popultation, so your comment was little strane, on the other hand I agree with you the Germans are hard smaty working people, and they don't need to apoligse to jealous people..
I still can't see why everyone did not see this problem happening when the Euro was first created. Germany should return to the Deutschmark. I have no doubt inflation will run rampant around the rest of Europe, but that will be the only real answer that Europeans seem to understand. The only losers are the large banks and large corporations and the did just fine when everyone had their own currency.
No one likes the person who tells the truth and that's what German is doing. Funny, they love the money Germany will put toward backing this failing currency but then get upset when they put restrictions on it. Germany would proably be better off outside of the Euro.
At some point, the other european nations should fear germany, only because Germany might decide it's getting tired of financially backing bankrupt countries. If Germany decides it's in it's best interest to take it's business elsewere like markets in Asia and South America, the rest of Eurpoe would go under.
Asia has China, I'm sure they will be fine without Germany.
As regards to geoplitics, this is a poor opinion
The world needs to offer redemption to Germany.
The Germans have been apologizing and bowing their heads in shame, since 1945,to anybody who asks. They weren't the only ones to commit genocide by the way!
Now they're expected to empty their bank accounts for paying Greek, Spanish and Italian pensions, without complaining. If they so much as utter a peep, the word N-a-zi is immediately evoked. Just look at this week's Greek newspapers.
I hope not last time Europe used Germany as a whipping boy we had world war two
World War I was settlement was punitive to Germany, but others convinced it that it was more punitive than it was and that it was the fault of conspiring insurgents and traitors. If we see a rise in those again, which has been happening so far, probably because of Germays success, then we would be in for a problem. The only thing we have to worry about currently is Germany deciding to take a step back and let nature take its course in the failed experiment that is the euro-zone.
Everyone might as well admit that the reason Germany succeeds is that they take care of business. They don't sit around and whine. They get off their butts and do what needs to be done. The rest of Europe should take that as an example and do likewise. The U.S. is certainly not a good example to follow because we are losing our butts as well.
Germany needs to tell the rest of Europe where to get off and continue with their successes. Might not be a bad example for the U.S. to follow !!
Dreams of Sir Adolf Hitler becoming true.The hard work of Sir Adolf Hitler is producing results and Germany is ruling Europe.
Hitler was never a knight, although he was a nightmare.
Germany is a federal parliamentary republic, based on representative democracy.
Not exactly what Hitler had in mind, brainiac.
That makes for a change. I thought it was Germany that had "ganged up" on the rest of Europe. Germany owes Greece in war reparations.
I would add that Europe ows large parts of it's culture from Greece . And you can add to this the treaturous seizure of Constantinople in 1204 by Westerners which destroyed the Byzantine Empire and lead to the way to the Turkish invasion of the Balkans. The latest sequels were to be seen in Yugoslavia
“The rich rules over the poor, and the borrower is the slave of the lender.” (Proverbs 22:7)
Germany and the central bankers are quickly changing the European Union from a voluntary union into a compulsory union, just as Abraham Lincoln and his Wall Street owners changed the U.S. from the voluntary union of independent States (Nations), created by the Founding Fathers in the Declaration of Independence, last paragraph, into today’s compulsory union of colonies of the Federal government.
After this precedent is set, the United Nations will then be changed from a voluntary union into a compulsory union and the greatest debtor nation in the world, the United States, will be reduced, just as Greece will be, into a colony of that world centralist government.
Lincoln's compulsory union cost the lives of over 600,000 Americans, while Merkel and her central bank owners will likely conquer Europe, without firing a shot. Even Hitler could not do such.
Its idiots like you who make the world a darker place, a dumber place. Starting with your bible verse (yeah, the bible predicted german greatness thousands of years ago, lol) and your narrowmindedness.
That is why Germans succeed: they don't put up with brainless gits like you.
Why not go further another step? To say that Abraham Lincoln, Jesus, Gandhi were aliens – came here to help us create a one world government. Why not say that the rarity of gold is artificially created by those who seek to control our planet?
Why not go yet another step to say, microwaved food is radioactive?
Not shockingly, cutting budgets led to a collapse in economic growth, and larger debt levels then these countries started with.
Then again, people like me said that would happen from the beginning: Decreasing budgets will put more people out of work, decreasing economic growth [enlarging the debt as a percent of the economy] and putting more people out of work [less tax revenue AND more people on government assistance]. Hence, no progress on the deficit, backwards progress on the debt, and higher unemployment and less economic growth.
You want to get rid of debt? You want the recovery to get moving? Then make sure you have a middle class capable of spending in the free market. Consumer spending drives all economic activity.
The idea that giving the middle class LESS money and putting MORE people out of work will somehow fix your budget situation is idiocy at the highest levels. Any short term budget relief vanishes when the economy turns downhill, reopining the budget problem again. Then again, maybe its no shock the last FOUR GOP presidents grew the debt as a percentage of GDP...
go germany
In theory, the Germans are right. They managed their economy very well and the EU periphery nations managed their economies badly. However, Germany did greatly benefit from selling products to those nations with an artificially manipulated currency, so they do bear some responsibility in cleaning up this mess.
Like it or not, Germany is still a nation that's on probation with the world. Germany "imposing" conditions on neighboring nations and requiring that they "act more German" sounds a lot like the old Germany that started two world wars and sacked Rome.
I think it would go over better if Germany took a more concilatory tone, even if their core position remained the same. This is time for Germany to show that it has moved beyond its dark past and willing to takes its place as a responsible European leader.
Smart argument, thank you
How far Greece, the cradle of western civilisation, has fallen. It's GDP is behind Nigeria, Malaysia, the Philippines, Vietnam. And certainly way far far behind their arch-nemesis, Turkey.
Fallen, fallen is mighty Greece. China had once fallen but now has the 2nd largest GDP. But, where art thou to save thyself O mighty Helenia! Will the Greek language slip into being like Aramaic – a biblical language with no significant number of people to utter it?
For a second I thought you were Augustus addressing the Roman Senate.
Why is there a need to pull down anyone better off than oneself. It's the human condition. A drunk only feels adequate if someone is getting drunk with him, but if he/she is a reformed drunk then the drunk wants nothing to do with them. Same thing when it comes to prosperity, if one isn't making it financially, unless their next door neighbor is in the same boat they resent their prosperity and will try to bring them down.
When one can get more money from welfare then working at a gas station–why work? Now, the ones that do work spend half their pay checks on social systems...somethings gonna pop.
Perhaps it's the Germans who should leave the Euro and not the Greeks. The Germans pay the bills and what do they get for it?
The Europeans do not have to be Subservient to the German Government, but do not expect them to Loan them anymore Money till they pay off the debt they have already incured with them.
It's only Southern Europe that is ganging up on Germany. Germany is not only exporting but imports a lot from Scandinavia and Holland. It is matter of producing quality products that can compete with the German products. It is very simple but Southern European countries are doing that. Workers in Nothern Europe does not want pay anymore for goverment workers in Greece and Spain retirering at 60.
Retirement in Spain is now at 67. Please stop prejudicing latin people.
Sorry about the mistake but I'm not prejudicing anybody and as a European only looking at economics. Living in Northern Europe I paid over 50% in tax and a lot of the money went to Southern Europe for "infra structure investments". Second of all people born in Spain are not latin people and the prejudicing of latin people is an American phenomenon.
If you're hostelling then you'll also want a sleep sack (somebody aealrdy recommended one). Definitely take the time to shope around a bit and get a good lock for your luggage, and maybe even get a second lock for hostel luggage lockers. If your budget is really that small, any amount of theft could really set you back, so it'll pay to be a little extra careful.Since you won't be in hotels, go to your local supermarket or drug store and look for the aisle with sample size toiletries. Everything there is ideally sized for travel travel-sized toothbrushes & toothpaste, shampoo, shaving cream, and travel toilet paper all sorts of stuff.
also, if you're staying in hoelsts, you could save a lot of money buying a sleepsheet. i think i got mine at REI, but it's basically a sleeping bag liner that gets pretty small, that way i didn't have to pay for sheets or sleep on sketchy ones . other people have suggested just sewing a sheet (or even just folding one over) works well too. definitely earplugs and an alarm clock. i'd also bring a small padlock as most hoelsts have lockers but then you have to rent the locks.
"Is Europe Ganging Up On Germany"
That's a switch, eh?
The countries blaming Germany have no one to blame but themselves! They're the ones spending beyond their means with huge deficits. That's why they're crying about austerity, they are too dependent on their governments for handouts. Governments are stupid- they need to create productive jobs for their people, that's how they can influence their economies. They should focus on the basics, like clean energy, increased food production, better transportation etc.
Bush's speech writer screws as much as his boss. Spain's unemployment is 50 %. Which planet are you on? It's 24 plus % and less than 25 %. Do your homework before you go on a national television and make a complete fool of yourself.
This is ironic. Usually it's been Germany beating up Europe.
It might not be a good idea to antagonize Germany. They do not have a long history of playing well with others.
Germany.....the Goose that lays the golden eggs. Slain for Greece, Spain and Italy ???
Work hard, get an education. Raise your children to do the same and do not have more children than you can afford (see education)... Why is this so hard to understand?
All the children of Europe don't like being told to grow up by the only adult country in Europe.
In Europe they convinced you that Europes woes are due to too much helping the poor. I dont know how, did they drug you? We all know how a new treatment of debt or way of treating the legal obligation of the debtor to pay a rent on owed money and their obligition to return the principal, caused a new and totally strange situation that did for the markets of the whole world, or a combination of deregugulatirn of the financial world with a new way of dealing with the benefits of lending money were the things that had unepected and pretty fatal consequences on the worl dmarkets. The new way of making money out of debt was by selling on the right to recieve the interest the debtor promised to pay in return for the money he was lent to third parties. Though we all know this, in europe they managed to argue things round in circles till the fault of the financial crisis became to much socialism during the last thirty years, and that when the last thirty years were the years of ideas that opposed socialism rising to have more weight than socialist ideas did,. They were the thirty years in which ideas that opposed socialism had their first success, with Mrs Thatcher, who came into power in 1975 turning, ideas that did for socialism, from ideas into policies, she put in place policies that are now famous for being part of the Republican agenda, such as deregulating, most especially deregulatingthe financial world or a more flexible labour market, something that has now been the bane of Spainish workers for at least twenty years, other policies of hers were privatisation, and breaking the back of the unions.
Europe was not only cool and spin doctor enough to leave you with the impresion that the problem was socialism, the virilance of socialism, virulence that started thirty years ago and Germany and France are the countries with most Greek debt, so presumibly the countries that made most money out of it in the years in which the markets were making so much money out of debt that all they wanted was to convince more people to take out loans, credit worthy or not, but also they made you forget the recent history of America, it was thirty years ago that Ranieri, Finch and Maxwell, "All the Devils Are Here", Bethany Maclean and Joe Northeras, and designed the new way of dealing with IOUs that lead to the financial crisis. You know it was not socialism, much more virulent in the twenty years of my chidhood previous to the last thirty years that created the present crisis, it was the deregulaiton of the banks and the ideas of Ranieri, Fink and Maxwell that did indeed start thirty years ago, that created the present propblems althoug innocently enough thirty years ago, with the ideas of the IMF ideas that made sure that we did not cilmb out of the problems, caused by deregualtion and cdos, playing their part and their ideas are also the result of idealogy of the right.. Socialism started many many years before thirty years ago.thirty years ago marked the start of the decline of socialist policies.rose macaskie madrid.
Well – I can't afford to buy "The Zeit" or any other newspaper! Mr. Joffe has a neo-konservativ view from left side, (not really much better as the one from the right)! He told in an Amanpour interview that Mrs Merkel will be chancellor for a further four years, and this view shocked me! But telling this has one reason: Why doesn't he himself, stand for beiing the whiping boy? No he needn't suffer anything! All youth and young people are sold with low wages in busy and stressy working conditions! Be young and successfull and without any reasons not to work. They were raised in times without crises, without war and and everything was getting better steadily. People like Herr Joffe are old now, but talk about success, permanently like climbing up a ladder, they keep their highly paid job long and longer – It's very convinient not to go out of the way and rule with grey hair! It is nice to belong to the happy few, regretting in loyality with the ones in power, but too easy! (We should cut his pensions, probably! Only if your own ass burns, you feel they are talking about fire.....)
It is my sincere honor and privilege to register my heartfelt thanks for the program GPS, your perspectives on issues and the comments are very enriching. i can only say you are simply put one of the heroes and ginuises of our time. please coninue the work. you make simple complex issues of our time thateven the simple can understand.
Apostle Daniel shimunza, Zambia
It's impossible for countries like Greece with its super early retirement age, record low tax paying and nearly half unemployment to be successful regardless of what Germany or ANY of the other European countries do
It IS Greece's fault, nothing more to it
, get sturdy pistalc cutlery. The Rick Steves store (travelstore.ricksteves.com) has very good pistalc cutlery for $5.-Small travel alarm clock. Get the most compact one you can find. They'll run you about $20. However, if you're taking your cell phone, you can nix this idea and just use your cell phone as an alarm clock.-Plug adapter. Most chargers for electronics (like cell phones and digital cameras) can handle both 110 & 220, so all you'll need is a simple plug adapter.-Money belt and locks for luggage. Don't lock the luggage before you get on the plane, though, or the TSA will kindly remove it for you. -And don't forget Pepto Bismol tablets and small packets of handi-wipes, which are indispensible when on the road.Regardless of my travel budget, those last four items on my list are ALWAYS packed.