A friend of mine who often visits Germany, and has
continuing conversations with friends there, tells me that his German friends
see the continuing Euro mess as a straightforward matter, “There are rules, and
you follow them.” My southern European
friends see things differently. To them,
Greece, and other southern European countries were systematically squeezed by
northern European banks like Deutsche Bank, operating a lot like the U.S. banks
that made no-questions-asked loans and then rapidly foreclosed in the run-up to
the U.S. financial crisis. Then Greece
sought under the table assistance from Goldman Sachs (who better than they to
know how to rig an intricate financial deal?) to stave off Deutsche Bank. But Sachs had rigged the deal so that Greece
suddenly found themselves several billion more in debt to Sachs than they had
expected, more than their treasury could bear.
Greece had been caught in a pincer movement between two great white
sharks. So they adopted the classic
southern “ok, now I can’t pay, what do you do?” approach, which set off the
cascading events of the European debt crisis.
In other words, the crisis was set off by the loose financial practices
of northern European banks, so why should southern Europe unilaterally suffer for
it?
It’s now being generally recognized as a culture
clash between northern and southern European values, but of course, other
layers of the problem make it even more complex. There’s also the growing suspicion on the
part of southern Europeans that Germany’s long-term goal is to obtain a political
hegemony over all Europe by financial extortion based on the strength of the
German economy, a sort of economic Fourth Reich. That makes countries like France or Britain
less than eager to support Germany’s proposals.
All Europe is sliding into recession because southern Europe’s economies
are being leached away by excessive debt loads, while German manufacturers face
loss of customers for their markets by the very austerity German financiers
seek to impose. Germany itself begins to
show internal policy conflicts. German
policy makers show increasing signs of wanting to help other European countries
in need, but continuing reluctance to honor such divergent values. It becomes increasingly obvious that
economics alone has no solution for problems originally described in purely
economic terms.
While many issues must be resolved to find solutions
to Europe’s problems, one of the most interesting ones is never mentioned. Solving the crisis will involve some degree of unequal sacrifice. A perception of such sacrifice with a willingness to proceed requires altruism, but in turn, such altruism involves a sense of group identity. A big reason why differences in political
values between Connecticut and Texas, as well as other large cultural
differences, never come to a head is that both share highly mobile populations
and a crowded common history. Texans
frequently live in New England and New Englanders in Texas. They both know what it’s like to live in the
other place. Just as important, they
share common heritages, from the War of 1812, celebrated this year in both
places, through to rocket probes on Mars.
"We Americans" is a common phrase. Differences loom far smaller than commonalities.
I have never heard the phrase "We Europeans" from the lips of a European. In Europe, Germans remain intensely German, and
Spaniards Spanish. In Italy, Florentines
remain suspicious of Neapolitans. And I
have never heard a European discuss the common history of, for instance,
Germany and Spain. Each place has an
exciting and memorable history, but a European history is a compendium of the
histories of European countries, not a history of all together. One never gets a sense of shared hardships
overcome, shared triumphs, shared places of pilgrimage. A European history is needed that reminds
people of their common heritages and values, not their differences. It is there: the era of the Holy Roman Empire,
for example, had a more cross-national nature than anything in Europe
today. Charles Martel at Tours and the Venetian Fleet at Lepanto won great battles on behalf of all Europe. Common memories and common heroes should abound. But instead, European countries today compete, often bitterly,
between each other for the European championship in soccer and blame each other for their problems.. No such competition and no such bitterness occurs between states in
the U.S. Until they can recognize a
unity that goes far beyond a common currency, Europeans will never succeed in
sharing a healthy common economy.
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