German Interests in European Monetary Integration

This article explores the sources of the German govermnent’s position on European monetary integration since the first attempt at monetary union. I argue that German policy on European monetary integration was, until after EMU, driven by German foreign policy elites’ perception that integration could be used to achieve their primary geo‐political goal, embedding Germany in European institutions to dismantle the security dilemma with its European neighbours, particularly with France. After the signing of the Maastricht Treaty, this situation was reversed, as domestic economic interests and state financial authorities have taken the lead in shaping Germany’s policy on European monetary integration, with foreign policy elites playing a secondary role. Thus German policy has come to resemble more the policies of other European monetary union member states, in that domestic economic concerns have taken precedence over geo‐political interests in the making of policy on European monetary integration.