A THREE-SPEED EUROPE: A LETTER TO THE ECONOMIST (March 15, 2011)
“France needs Germany to disguise its weakness,” you quote a senior Eurocrat, “and Germany needs France to disguise its strength” (“The Divisiveness Pact,” March 12, 2011). A brilliant remark, this. Besides, Germany and France need the remaining fifteen euro-zone countries to disguise their joint befuddlement with the euro crisis. Among other things, Angela Merkel and Nicolas Sarkozy’s “competitiveness pact” envisages separate summits for euro-zone countries, of which the first will take place this week. Of course, this leaves the remaining ten countries of the European Union in the dark on many crucial issues concerning the Union itself. The French push for a euro-zone “economic government” is the real worry here. The meddling will only grow over time, no doubt. Sooner or later, it will come against the European Central Bank, too. But a three-speed Europe is already here, with Germany and France on top, other euro-zone countries in the middle, and the non-euro countries at the bottom. The only question is how long the bottom will hold.