The limits of German power: how ECB decisions have put constraints on Berlin’s management of the crisis

The German government has been at the heart of the EU’s response to the Eurozone crisis, but key decisions made by the European Central Bank, notably the introduction of a large ‘quantitative easing’ program, have occurred despite German opposition. Mattias Vermeiren writes that these two developments are intricately linked, with Germany’s pursuit of creditors’ interests generating unintended ‘spillover’ effects that have pushed the ECB into particular monetary policy stances. As such, he argues that Germany has been far more constrained in its management of the crisis than is commonly recognised.