On the 18^th of January 1871 the unification of Germany into a modern state took place within the walls of the Versailles Palace in France. During the XIX century the old continent witnessed the rise of the French Empire under Napoleon rule and the spring up of nationalism, which had a part to play in the coming decades.

The unification of the German states under Prussian leadership shifted the balance of power in Europe in detriment of France and the United Kingdom. This change, along with a series of entangled alliances of European powers caused the break-out of the WWI. When the conflict was over, the Treaty of Versailles was signed and draconian economic restrictions were imposed on Germany.

The Versailles Treaty has similarities with the Congress of Vienna, which was signed 103 years earlier, just after the defeat of Napoleon. Yet the constraints of the latter on France were not as harsh as the former on Germany. Both treaties were designed to prevent unbalances in power and the rise of one nation to hold dominion over the rest. The period of relative peace in Europe that followed the end of the Napoleonic Wars until the WWI is deemed by many historians as the outcome of an ingenious framework designed to block the rise of one destabilizing super-power. In the case of Germany, it failed outright.

The economic sanctions instigated extremism in the German state and the alienation with the rest of the European powers, whose regime was considered as oppressive and humiliating.  The WWII burst out 21 years after European leaders gathered in the Versailles Palace. Germany belligerency was seen as the main trigger again, although this time the economic upheaval and national discontent were the main tailors of the German attitude.

The European project designed in the aftermath of the WWII was partly planned to finish hostilities among nations in the Old Continent, and integrate them as a part of an economic association where war was no longer seen as a prudent course. 60 years on, Germany seems to be holding sway of the continent again, but this time the main weapon used is the economic machinery.

The erupt of the financial crisis in 2008 along with a set of economic measures quasi- forcefully imposed in the southern states of Europe are arising questions over the role of Germany in the continent and its major influence on certain European institutions, such as the European Central Bank (ECB). The recent fall out between Angela Merkel and Mario Draghi regarding the extension of the quantitative easing program is a clear example of how influential German politicians can be on a supposedly common European institution. 

 The existence of the common currency is seen as a life insurance that the continent will not ever descend into a total war. Economic ties have been forged across the continent and the Euro is the culmination of a herculean task which began more than half century ago. However the very purpose of keeping the common currency alive in the merger of quasi-culturally equal nations, but completely distinct economically is what is causing too much damage in the different economies of the South. The stark financial conditions forced upon some states such as Greece are giving way to the rise of nationalism movements and the alienation of South Europe against Germany. As a result, comparisons are being made between the current status quo and the circumstances which incited the beginning of the WWII.

Fortunately history rarely repeats itself, or let’s hope it does not. If the Euro wants to see a prosperous dawn European leaders should take a lesson from the past and learn that hard economic measures do not end very well. Germans should know that better than anyone else, and they should also know that sometimes pressing hard on an issue as well as tireless finger-wagging will not take them any further given the current state of affairs in Greece and its new anti-austerity left government.

As the main powerhouse, Germany has the key to stabilise Europe, wiping out differences and quarrels built up during the crisis. That path might be disliked by many, but the other option would ultimately be the break-up of the Union and even more economic turmoil, which would stretch its embrace globally because the “Greexit” would set a precedent for others to follow should Germany continue its indefatigable oratory.  It is time to stop being the cruel master slapping on the face with an iron gauntlet and become the leader of the European boat to steer it towards safe harbour

Moreover, the problem in eastern Ukraine needs a European Union strong, united and with a powerful leadership determined to play the match as one. If we cannot solve our own differences and make together a brighter future, the whole European project will end up on the scrap heap leaving behind a post-war scene, at least in economic terms.

 The question is, will Germany do it on time?