Brexit Vote: Berlin might be on the verge of a nervous breakdown and doesn’t know it

KeepTalkingGreece.com — According to German dailies Die Welt and Handelsblatt that have obtained a copy of the “German strategy regarding Brexit“, the 8-page long document details how the government wants to deal with Britain as it leaves the European Union.

Germany is willing to negotiate an association agreement with Britain, but wants to avoid making too many concessions that would give incentives for other states to follow suit. Other countries that might want to leave the European Union could be France, Austria, Finland, the Netherlands and Hungary, the paper notes.

To deter other European countries from leaving the bloc, the European Union “should refrain from setting wrong incentives for other member states when renegotiating relations.”

“The extent of the knock-on effect will depend on the handling of the United Kingdom.”

Both Wolfgang Schaeuble and  Chancellor Angela Merkel fear that the European Commision, France and Italy could exploit the current uncertainty to push for more risk-sharing — a reference to pooling liabilities in tackling the euro debt crisis, for example. Germany should “proactively” steer against such a development, the paper said.

The reason for Germany to oppose such a move is pure political calculation as Berlin fears that such a move would strengthen the hands of euroskeptic movements in EU countries and within Germany itself that faces the challenges of far-right, racist Alternative for Germany/AfD but is unable to deal with them.

Schaeuble’s staff are worried about “an increased level of shared liabilities in the euro zone, for instance an independent budget for the 19-nation single currency region or a European deposit guarantee scheme.”

Berlin is only willing to accept a deeper level of integration in the European Union when E.U. treaties are changed, for instance to strengthen the control of budget and economic policies. One of the proposals in Mr. Schäuble’s paper is:

“to give the European Union the power to block a nation’s budget plan if it does not meet the region’s deficit rules.”

The paper also said Britain’s departure from the European Union could cost Germany €3 billion, to make up for the future absence of Britain’s contribution to the European budget. The hole would have to be plugged by other E.U. countries.

The German dogma has been always clear: “Wins are ours, Losses are yours.” This policy cannot work but Berlin is not willing to change it.

German Foreign Minister Frank-Walter Steinmeier invited foreign ministers from the EU’s six founding members (Benelux, The Netherlands, Italy and France in a villa in Berlin to consult about the Brexit vote.

“I am confident that these [6] countries can also send a message that we won’t let anyone take Europe from us,” Steinmeier told reporters.

Steinmeier (SPD) did not hold the meeting in Brussels as he should but in EU’s unofficial headquarters in Berlin thus claiming ownership and leadership of the European Union. Not only he excluded the rest of the EU-member states from the decision making process he also left outside the core EU institutions, the European Commission.

A not at all diplomatic move? Certainly. A sign of German arrogance? No doubt. A spasmodic act? For sure. Authoritarian behavior? Absolutely.

Steinmeier called the European Union “a successful project of peace and stability” and said that there was a “strong desire” within the bloc to defend and strengthen it.

He did not elaborate whether “the bloc” are all 27 – still 28 indeed- EU members or only the founding ones.

“I think it is absolutely clear that we are in a situation in which neither hysteria nor paralysis are permissible, ” Steinemeir said and added “We must not rush headlong into hectic action, pretending we had all the answers. But we must also not fall into depression or inaction after the British decision.”