Many observers expect the German elections on Sunday to result in a third mandate for Angela Merkel but with a switch in government coalition partner from the more free market liberals of the FDP to the Social-Democrats. Jack Ewing in yesterday’s New York Times writes that Merkel’s hand may be “forced” into a so called grand coalition between Germany’s two biggest parties.

The German elections matter for the more than 300 million people in the Euro area as they will shape the leadership for resolving the crisis. Angela Merkel has received heavy criticisms for her record: Joschka Fischer deplores a lack of vision, courage and strength of purpose. The columnist Wolfgang Munchau claims that the Euro cannot work with a German macro-economic policy. And Jürgen Habermas writes about a Germany dozing on a social volcano and shirking its responsibility. But could Merkel have adopted a radically different approach over recent years?

Exercising leadership is about disappointing your people at a rate that they can absorb, Marty Linsky says. Clearly, disappointment in Germany with the Euro has increased over recent years, Continue reading →