Big winner?

In an interview with German daily Frankfurter Allgemeine Zeitung, European Commission chief Jose Manuel Barroso had words of praise and criticism for Europe's largest economy.

"Germany makes the largest contribution to the EU's budget," Barroso told the paper. "I never miss an opportunity to thank your country for that."

He also said he understood the worries of German citizens about the future of the euro very well, adding that he has a great sympathy for Germany's culture of stability.

However, Barroso also criticized leading German politicians for failing to explain the importance of the euro to the general public. He said the euro had been particularly good to Germany with regard to its exports, generating a trade surplus of about 134 billion euros ($164 billion).

"Do the German public actually know that almost 86 percent of this 134 billion euro trade surplus comes from trade within the European Union?" asked Barroso. "Do German politicians tell the people that German exports in other EU countries are constantly on the rise?"

Inaccurate assessment

Although Barroso cited Germany as a big winner from the euro, Fredrik Erixon, the director of the European Centre for International Political Economy, says describing Germany in such terms may not be accurate.

"I think the euro itself has been beneficial to many European countries and Germany is one of them," Erixon told Deutsche Welle. "I don't think however it's correct to say that, without the euro, Germany would have performed in any other way than it has performed during the past 10 years. I don't think it's warranted to draw similarities or draw analysis to the point where you suggest that Germany is one of the big winners or big losers of anything."

Barroso used even more pointed language when it came to the changes Germany wants to see in the EU's Security and Growth Pact.

"It would be naive to believe that we can reform the treaty only in those areas which are important for the Germans," said Barroso. "Of course Britain and others would then come with their wishes, too."

Barroso's comments did not fall on deaf ears in Berlin. German Economics Minister Rainer Bruederle struck back, saying that to blame Germany for lacking European awareness is absurd, and that the country has already demonstrated its readiness to achieve political and financial solidarity.

Underlying frustration

Although Barroso is not required to evaluate or comment on statements made by political leaders, Erixon believes his criticisms reflect a deeper frustration during these tough times for the eurozone.

"The problem is this. Many political leaders, including Chancellor Merkel, are by themselves creating more turmoil and instigating a greater feeling of crisis by philosophising publicly about the possibility of a collapse of the euro," said Erixon. "They should have known that the most important thing is that you have one message, you stick to that message and that message should be; we are going to do what is required to save the current institution from failure and from collapse."

In the interview, Barroso highlighted a need for quicker decision making in future economic crises, so that world markets will not receive as many contradictory signals from Europe as they did this time around.

"What was problematic was the fact that markets began to doubt whether support for Greece would be forthcoming. Perhaps it should have been said more clearly right from the start that Germany has a strong interest in keeping the euro stable, not only for reasons of European solidarity but also in its own interests."

Author: Matthew Kang
Editor: Susan Houlton