And let’s be clear on what Merkel’s message was to the Bundestag – because it was one of the most frightening things I have ever seen. Here is her quote from yesterday –
“What is good for Europe is good for Germany, half a century of peace and prosperity in Germany and Europe testify to that. No one should think that a further half century of peace and prosperity is assured. It isn’t. And that’s why I say if the euro fails, Europe will fail, and that mustn’t happen.”
What is the message to the German people? Pay up or return to the unthinkable. Do not underestimate how messy all of this is in Europe. And do not underestimate how much of this Euro area crisis resolution – and bailout process – is tied to the events of 70 years ago. What Merkel said yesterday was probably the single most important statement that has been made from any politician since this crisis began. Scary and important!