The Guardian, September 16, 2012
Uwe Albrecht has what he calls a wonderful problem. In his office in Leipzig’s fortress-like town hall, the deputy mayor says the city’s population has grown so much in the past decade that he is having to build more kindergartens and schools.
“Ten years ago we were talking about closing schools,” he said.
Now Leipzig is one of the success stories of reunification. New roads, rail links and a redeveloped airport have sucked in investment and international companies. But none of it would have happened without a colossal 20-year bailout that has already cost the west €1.3tn. “Without the transfers from the west, it would not have been possible.”
With Europe slumped in an existential crisis, looking both desperately and fearfully to Germany to supply the leadership and the money to match its clout as the EU’s central power and biggest economy, it is often forgotten that Berlin is a past master at financial bailouts. Which is why it is also weary of them.