A surprising moment of consensus: Der Spiegel and the Taz both rip into Peer Steinbruck, former German finance minister and leading the race for the SPD’s candidacy as chancellor. Not only that, they do so for substantially the same reasons.
First, they agree that Steinbruck denied in the autumn of 2008 that the financial crisis was a problem, claiming that it was the Americans’ fault and nothing to do with Germany, and even said that there was no need to bail out the banks. Secondly, they agree that he argued vehemently that a response to the crisis would be national-but-coordinated, rather than European, thus leaving Ireland and Spain to cope on their own, and he refused to lead an IMF working group on the issue. These days, he supports euro-bonds. Thirdly, despite all his bluster, he then reversed course and bailed out the banks, setting a precedent.
It’s fascinating that the green-left Taz and Der Spiegel, which might as well be the Bundesbank’s house journal, manage to agree on so much. Taz is predictably more radical, pointing out that WestLB swelled up with dodgy asset-backed securities and eventually burst while Steinbruck was its regulator and that he even got a light-touch regulatory policy for derivatives written into the 2005 coalition agreement, and that he also denied that there was any need for stimulus in the autumn of 2008 before changing his mind. (Who now remembers crass Keynesianism?)
Meanwhile, Guy Verhofstadt and Danny Cohn-Bendit have a manifesto. What can those two possibly agree on? Inevitably, it’s more federalism. As with everyone who uses the phrase “more Europe”, what they want to do with it isn’t clear.