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Rainer Hillebrand

This article looks critically at the widely held view that Germany has not done enough to help overcome the Eurozone crisis. According to this line of argument, Germany has refused to comprehensively bail out crisis countries, offer mutual support in order to counter speculative attacks or endorse demand-side growth policies. This is allegedly because of a more narrowly defined national self-interest, increased EU-skepticism, and hegemonic ambitions. This article takes the perspective that such criticisms are primarily rooted in a Keynesian reading of the Eurozone troubles, whereas German policies are informed by another rationale: the ideas of so-called ordoliberalism. Generally, this traditional German school emphasizes the importance of principles, rule-based behavior, and long-term goals—and it believes in the (microeconomic) functioning of markets. Consequently, ordoliberals perceive the crisis as resulting from unsustainable debt levels and a lack of competitiveness in southern Europe, concomitant with a failure of Eurozone institutions. Based on this diagnosis, policy proposals are primarily targeted at debt reduction, as well as structural and EU institutional reforms. While Germany's crisis policy thus appears rational from an ordoliberal perspective, it is considered to be at variance with, and inadequate from the viewpoint of a Keynesian approach.

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Wade Jacoby

This article offers a corrective to the notion that German ordoliberal ideology is the key to understanding German policy behavior during the Eurocrisis and, by extension, to the contours of the electoral debate in fall 2013. First, it shows that ordoliberal thought underdetermines policy choices. That is, different actors clearly influenced by ordoliberal thinking and often stressing different aspects of the broader ordoliberal cannon are arguing for more or less diametrically opposed policy solutions. Second, the article provides evidence that this deep divide inside the ordoliberal policy community has contributed additional incentives to the tentative and inconclusive policy choices of the government throughout much of the Eurocrisis. Third, the article extends the analysis of this very cautious policymaking into the campaign phase and the subsequent coalition agreement. It explains why the two major German parties—including an SPD with a much thinner attachment than the CDU to ordoliberalism—sought to play down the Eurocrisis in their campaigns and in their subsequent coalition agreement. One implication is the low probability of German policy change despite ideological differences.

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Charlotte Galpin

The European Union has been in its biggest ever crisis since the onset of the Greek sovereign debt crisis in 2010. Beyond the political and economic dimensions, the crisis has also sparked discussions about Germany's European identity. Some scholars have argued that Germany's behavior in the crisis signals a continuation of the process of “normalization” of its European identity toward a stronger articulation of national identity and interests, that it has “fallen out of love” with Europe. This article will seek to reassess these claims, drawing on detailed analysis of political and media discourse in Germany—from political speeches through to both broadsheet and tabloid newspapers. It will argue that the crisis is understood broadly as a European crisis in Germany, where the original values of European integration are at stake. Furthermore, the crisis is debated through the lens of European solidarity, albeit with a particular German flavor of solidarity that draws on the economic tradition of ordoliberalism. Rather than strengthening expressions of national identity, this has resulted in the emergence of a new northern European identity in contrast to Greece or “southern Europe.”

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Beverly Crawford Ames and Armon Rezai

liberal hegemon in the European economy. Its ideology of ordoliberalism is the ideology of wage suppression and austerity. 36 By virtue of its power position, Germany has forced that ideology onto the periphery of the Eurozone and its domestic policies

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Christian Schweiger

relatively balanced Franco-German axis. 4 France had turned into a junior partner whose role was reduced to rubber-stamping predominantly German ordoliberal policies and granting them broader legitimacy through the usual joint Franco-German public

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Tschüss, Perfidious Albion

German Reactions to Brexit

Eric Langenbacher

renegotiate their membership terms, perhaps leading eventually to a demise of the European Union itself. The goal is to disincentivize future defections. This rules-based, residually “ordoliberal” stance obsessed with minimizing moral hazard has long

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David Art

architecture of the Eurozone. 5 But, by violating the no-bailout clause of the Maastricht Treaty, Merkel drew the ire of Germany’s ordoliberal establishment. While economists and business leaders believed they had an ally in “Frau Nein” during the winter of

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From Political Fringe to Political Mainstream

The Front National and the 2014 Municipal Elections in France

Gabriel Goodliffe

Greens—who evince a fundamental convergence around the neoliberal and ordoliberal principles underpinning European economic integration and the institutions—the European Commission, European Central Bank (ECB), and European Court of Justice—that oversee

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Two of the Same Kind?

The Rise of the AfD and its Implications for the CDU/CSU

Matthias Dilling

positions within its ranks. After the ordoliberal and conservative faction around Bernd Lucke had left the AfD in 2015, another conflict between a national-conservative and a far-right faction erupted. The former around Frauke Petry broke away from the AfD

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Leading through a Decade of Crisis—Not Bad, After All

Germany’s Leadership Demand and Followership Inclusion, 2008-2018

Valerio Alfonso Bruno and Giacomo Finzi

perspective is the notion of “ semi-hegemony. ” According to this view, Germany’s domestic politics, in particular, its dominant ordo-liberal economic policies have tended to focus on the culture of stability and financial rigor or austerity. In turn, it is