With Greek debt negotiations at a critical phase it is time for Germany to end its policy of ‘muddling through’

The Greek government is currently attempting to negotiate a deal with other Eurozone states over the country’s debt. Joshua Aizenman writes on the approach of Germany throughout the crisis. He argues that the German government’s perspective is best characterised as a form of ‘muddling through’, whereby stronger action to solve the Eurozone’s instability is only advocated when Germany’s domestic priorities become threatened. He states that greater willingness for debt concessions tied to deeper structural reforms, as well as more aggressive policies aimed at hitting the ECB’s declared two per cent inflation target, would offer the best route out of the crisis.