While Merkel promised a few years ago that there would be no common financial liability within the European Union during her lifetime, we are currently making great strides towards just such a liability, and that while she is still in office.
About two decades have passed since the introduction of the euro as book money in 1999 and as cash in 2002. While the first half of this period was still characterised by unclouded optimism that the European continent could be united in this way, the second half was an uninterrupted string of problems. This reversal became clear in the course of the debt crisis at the beginning of the last decade; it led to a series of profound disagreements between the individual states of the EU, especially of course between those of the Eurozone, on how to proceed in the future. Old wounds have been reopened and the euro seems to be more and more of a burden.
In essence, the strategy to deal with the large economic disparities within the Eurozone is to provide more and more money, which is supposed to benefit the southern countries on the Mediterranean in particular. However, while these rather suffer from Germany’s export strength, the last twelve years since the economic crisis have clearly shown that an increase in capital is in no way suitable to make the economies of Southern Europe more competitive again.
The new plans for a common EU budget, hidden behind nice slogans like Corona Bonds or Next Generation EU takes Europe a good deal further towards a fiscal union.