Can Germany’s Social Democrats Offer an Alternative?

Since the euro crisis began in 2010, Germany has found itself in a position that, like the crisis itself, is unprecedented in the history of the European Union. As the largest creditor in a single-currency area consisting of sovereign states, Germany has had extraordinary power during the crisis—so much so that during the last few years Europeans have been debating whether Germany is now a regional “hegemon” and even whether a “German empire” is emerging. Frustrated with Chancellor Angela Merkel’s slow but unyielding approach to the crisis, Europe has looked to the Social Democrats—Germany’s largest opposition party—for an alternative, in particular the debt mutualization that many economists think is necessary.