By attempting to address the long-term problem before the immediate one, Germany has chosen a curiously back-to-front approach to the crisis. Ah, say the markets, but that\’s how the Germans like it. They want the cart before the horse. Once the cart is in place, then they can start talking about the horse.
That\’s the assumption, but what if Ms Merkel means what she says? What if she actually believes that budget discipline and structural reform alone are enough to solve the eurozone\’s problems? Crazy though this might seem, that\’s the implication of the rhetoric.
Yes, what if she (and they) really do believe this?