What are the consequences of the new CDU presidency for Europe in general and in particular for the currency union? Lucas Guttenberg, deputy director of the Jacques Delors Institute Berlin explains in the run-up to the elections: “When Merz says that Greece should have left the euro in 2015, he calls into question the euro’s character as an irreversible currency union. If that is really his position, then people should start worrying. Merkel always resisted all attempts to drive Greece out of the euro – even from her own finance minister – because she understood that you cannot run a currency union like a fixed exchange-rate regime. Kramp-Karrenbauer seems to be on the same line. Much like his mentor Schäuble, Merz breaks with the position of the chancellor and puts euro exit as a policy instrument back on the table. If Merz wins and Merkel stays on as chancellor and then a question like Greece arises – who calls the shots and who will the party follow?”
Read the full article in the financial times here.