German Chancellor Angela Merkel attends a session at the German Bundestag in Berlin on June 7. The standard Keynesian prescription for what ails the EU is for the rich countries, especially Germany, to reflate, spend more and increase aggregate demand so that the southern deficit countries will also reflate. But this is unlikely with the fiscally cautious Merkel government. Photo: EPA-EFE

Germany alone can save the European Union, but will it?

Andrew Sheng says the political problems of debt-laden Italy may well destabilise the entire European project, because they are symptomatic of what really ails the euro-zone family – a refusal of the rich members, led by Germany, to accept that an individual debt is a family debt

Topic |   European Union

TOP PICKS

German Chancellor Angela Merkel attends a session at the German Bundestag in Berlin on June 7. The standard Keynesian prescription for what ails the EU is for the rich countries, especially Germany, to reflate, spend more and increase aggregate demand so that the southern deficit countries will also reflate. But this is unlikely with the fiscally cautious Merkel government. Photo: EPA-EFE
READ FULL ARTICLE