With Germany reunified, the main impetus behind the integration process was removed. Then, the financial crisis unleashed a process of disintegration. The decisive moment came after Lehman Brothers collapsed, and authorities had to guarantee that no other systemically important financial institution would be allowed to fail. The German chancellor Angela Merkel insisted that there should be no joint EU guarantee; each country wouldhavetotakecareofitsowninstitutions.Thatwastherootcauseoftoday’seurocrisis.
The financial crisis forced sovereign states to substitute their own credit for the credit that had collapsed, and in Europe each state had to do so on its own, calling into question the creditworthiness of European government bonds. Risk premiums widened, and the eurozone was divided into creditor and debtor countries. Germany changed course 180 degrees from beingthemaindriverofintegrationtothemainopponentofa“transferunion.”
This created a two-speed Europe, with debtor countries sinking under the weight of their liabilities, and surplus countries forging ahead. As the largest creditor, Germany could dictate the terms of assistance, which were punitive and pushed debtor countries towards insolvency. Meanwhile, Germany benefited from the euro crisis, which depressedtheexchangerateandboosteditscompetitivenessfurther.
As integration has turned into disintegration, the role of the European political establishment was also reversed, from spearheading further unification to defending the status quo. As a result, anyone who considers the status quo undesirable, unacceptable or unsustainable has had to take an anti-European stance. And, as heavily indebted countries are pushed towards insolvency, the number of the disaffected continues togrow,togetherwithsupportforanti-EuropeanpartiessuchasTrueFinnsinFinland.