Shrinking Merkel Down To Size: Berlin Faces Austerity Challenge in Brussels

[unhappycamper]

http://www.spiegel.de/international/europe/jean-claude-juncker-poses-challenge-to-merkel-and-austerity-policies-a-1017505.html



European Commission President Jean-Claude Juncker is challenging Angela Merkel in her de facto role as the most powerful leader in Europe. The election of Greece's Alexis Tsipras may help him in his fight against rigid German austerity policies.

Shrinking Merkel Down To Size: Berlin Faces Austerity Challenge in Brussels
By Christoph Pauly and Christoph Schult
February 10, 2015 – 03:03 PM



Jean-Claude Juncker deliberately chose to deliver his warning in German. "Commissioners are proposed by the member states, but they do not represent the interests of their member state," the newly appointed president of the European Commission said as he introduced his team last September. In the event a commissioner confused "national and European policies," he threatened, he would move that appointee to another portfolio.

Germany's Commissioner Günther Oettinger paid little heed to the warning. On Jan. 8, he met in Hamburg with German Chancellor Angela Merkel and Finance Minister Wolfgang Schäuble to warn them that Juncker was planning to loosen the rules of the Stability Pact for the common currency zone. The three quickly agreed at the meeting that the development would not be in Germany's interest, and they agreed to thwart Juncker's plans.

Euro Crisis Shifted Balance of Power

It had been clear for some time that Europe's most powerful leader would eventually clash with the head of the European Commission, the EU's executive, but it happened earlier than some might have expected. Juncker's commission hasn't even been in office for 100 days yet and conflicts between Berlin and Brussels are already surfacing. Policy differences are at the forefront, with Juncker feeling that Merkel has bound Europe to austerity policies for too long. But the conflict also touches on a more fundamental question: Who holds the power in Europe?

Merkel's ascendency to the most powerful woman in Europe is rooted to a large degree in the euro crisis, which shifted the balance of power from the European Commission to the European Council, the body representing the leaders of the 28 member states. As the crisis heated up, leaders gathered regularly to hold crisis summits under the auspices of the European Council in order to save the common currency from collapse. The decisions fell to the European Council because it was European leaders who had to make money available for the bailout packages. Given that Germany had the most money to offer, Merkel quickly became the most important player.