Seen from the other end of the Atlantic, the solution to the euro crisis always seemed obvious to some – not least NYT columnist Paul Krugman. Yet the Nobel Prize-winning economist has been wrong on virtually everything he has said about European fiscal policy.
Deputy chancellor Sigmar Gabriel argued this week that it was time to turn the page on austerity policies. But there is little chance of him bringing about a change of course. Rather, the return of the Greek crisis has underlined how little influence Germany’s Social Democrats have shaping euro-saving policies.