Tuesday, July 10, 2012

Crisis in Europe

FRANKFURT, GERMANY Over a lunch I interviewed Julius, a former student of mine. We spoke in German. Although I recorded the interview and am therefore in a position to cull some of the more pertinent details, I take full responsibility for any misrepresentations that I may have made.

Julius On the Euro Crisis: I’m no friend of the CDU but I’m impressed with the way Frau Merkel has managed the crisis here in Europe. It’s noteworthy the way she has held her coalition together. She is very popular and trusted here in Germany. I hope Europe acts reasonably and depends not just on one country to solve its problems. In the end though, Germany must pay. It can’t be otherwise. This is a challenge for Frau Merkel to bring her own party to accept this. The SPD is clear that we are an export country and we need the Euro to remain competitive. We don’t have an industrial crisis. We have a financial crisis. The banks have made risky investments and now they have to write these investments off and we must pay. That’s crazy. Banks have not just been greedy they’ve been stupid. Every bank apprentice knows that the customers’ deposits must be protected. The banks dare not engage in risky investments. What Germans fear most though is inflation. My grandfather was a very successful banker, a millionaire, who was the co-founder of a bank, and lost everything in 1923 due to hyperinflation. The solution to the Euro crisis is difficult. We must have agreement among the European countries regarding structural matters. The Greeks must pay their taxes. France’s concern is unemployment and that is understandable. There were six million unemployed in Germany when Hitler came to power. Keynes had argued that during a crisis such as this more spending is required. All this needs to be better explained to the German people. We need a good communicator like a Reagan. Unfortunately, this is not Merkel’s forte.

On America and Social Issues: The tea party and the religious right in America seem to want to return to the 50s, to McCarthyism, not against communism per se — but against others. They seem to be on a witch hunt and want to return to some earlier time, “ein reinkultur” when there was supposedly no separation between church and state. They want to teach creationism in the schools. That’s crazy. This is a Country that has landed people on the moon. How can they be so stupid? Sometimes I wonder whether these people are for real? Do they really believe these things or do they just say anything to defeat Obama. Here in Germany their issues are impossible to understand. Here, the government stays out of these issues and leaves them to the individual to decide according to his or her conscience. Gays can marry here and it’s quite normal. The only thing where the law is clear is that stores must close on Sunday. Not all stores though, bakeries and flower shops can stay open. [Julius chuckles] We need our Kucken on Sundays, you know, and, of course, be able to buy some flowers as a gift, but this has nothing to do with the church, but protection for employees from their employers. It’s the tradition here. Upon concluding our interview Julius suggests we stop by the Alte Nikolaikirche, an Evangelical church, where he makes a habit, when in the area, of lighting a candle.