In my opinion Ms. Tyson, like so many other experts, believe that Germany’s objections to real fiscal unity are more self-serving then they are based upon sound fiscal theory. She believes that ultimately the European crisis can only be resolved by spreading the burden and pain evenly amount all nations; she advocates the creation of Eurobonds, which Germany is reluctant to even consider.

I think Professor Tyson’s mechanical thinking that the EZ must resolve its problems by becoming more inextricably interwoven precludes the possibility that some nations, especially Germany, might be hedging their bets against the long term prospects of the bloc. We should avoid overly criticizing Germany because it wants to protect its financial stability from the instability that has besieged and practically consumed the EZ. Quite naturally; Spain and Italy champion the idea of greater financial unity because that would allow for the resolution of their economic problems by using someone else’s money or credit worthiness. It is disturbing to comprehend the lengths that many economists and financial experts are willing to go to save the EZ without first debating if more money should be investing into its resurrection. It seems inconceivable that the after two very difficult years, some of the EZ member nations might be seeking a second round of bail-out funds. Germany seems to have decided that it wants to limit its exposure to continuous rounds of bail-outs. It should not have been too difficult to overhear some the summit members whispering to one and other; “let’s get our banks as much money as we can…then they can buy more sovereign debt.”

The big loser at Friday’s summit meeting had to have been Greece. The meeting did not produce any real news about decisions pertaining to the Greece’s problems. It can reasonably be concluded that the leaders intentionally avoided the topic. I understand that Greece’s political gridlock rivals its financial difficulties. Consequently until the Greeks decide how they want to proceed with their negotiations with the EZ, leaders at Friday’s meeting had nothing to discuss. The fact that Greece wants to re-negotiate the terms of its bailout agreement(s) (after it has already received billions pursuant to the agreements) must be unsettling for the leaders. I think that many officials privately discussed Greece’s eventual departure from the EZ. Germany seems to have run out of patience with Greece. Chancellor Merkel must realize that the overall financial well-being of the EZ would be better served without its members continuously concentrating its resources on resolving the Greek problem. The Chancellor’s position is easier to understand when one accepts the fact that the Greeks themselves are unsure if they want to be an equal partner in Euro experience. Perhaps because of purely selfish reasons France, Italy and Spain, when it comes to Greece, now seem only too willing to appease Germans’ demands that Greece comply with the terms of previous bailout agreements. In my view Greece has lost its relevancy to the other member nations of the EZ. Because time and resources are limited the EZ has began the slow process of unwinding its affairs from the Greek state.

Angel Merkel represents a constituency which is developing a more pronounced hostility towards future bail-outs. I think that she is poised to make a tactical retreat from the general terms of Friday’s summit agreement. Much to her credit the German Chancellor recognized that she had to publically show more flexibility on her demands for austerity. In principle she granted concessions that appeased her critics. None-the-less I do not envision Germany rushing to work out the details for implementing the agreement. The negotiations could drag on for months while the EZ’s problems need an immediate resolution. Time is on the side of Germany. With their nation’s robust economy Germans can weather the EZ’s financial troubles. The simply truth is that Angela Merkel is not going to allow Germany to become the bank of last resort for the trouble economies that are weighing down EZ vitality.