Which country is the biggest gainer from the creation of the eurozone? My answer would be Germany. This view is hardly accepted in Germany itself. But such scepticism needs to evaporate. Not only is Germany a beneficiary, but it needs to recognise this far more clearly than now. Only then are Germans likely to support the reforms the eurozone needs.
The starting point must be that the crisis is not dead, but sleeping. José Manuel Barroso, European Commission president, claimed, in his “state of the union” speech on Tuesday that “the economic outlook in the European Union today is better than one year ago, not . . . least as a result of our determined action”. This is true. But confidence has definitely not been restored (see chart). Further shocks are likely.
