ASSESSMENTS

Germany's Challenge in a Weakening Eurozone

Apr 1, 2013 | 10:30 GMT

German Chancellor Angela Merkel on March 25

DANIEL ROLAND/AFP/Getty Images

Summary

In the lead-up to elections, German Chancellor Angela Merkel must balance rising anti-German sentiment on the Continent with domestic demands to be tough on struggling economies in the eurozone periphery. Merkel's ability to strike this balance will influence whether she is re-elected, and it will affect the stability of the Franco-German alliance, upon which the preservation of the European Union and eurozone rests.

Germany's elections will be held Sept. 22. Regardless of whether Merkel wins re-election, the next government's biggest test will be maintaining its relationship with France. To do this, Germany must be more open to negotiating with France and the countries in the periphery. However, doing so will further challenge the German leadership to convince the population of the importance of European integration to the country's prosperity.

Berlin must convince the country's population that European integration is vital for prosperity....

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