After Merkel: What Comes After the "Strongest"

2022/03/17

With the desire to leverage my experience working at the EU headquarters (European Commission), I have previously published two books on the EU, focusing on the Eurozone economy and the European Central Bank. I had decided long ago that the theme of my third book would be Germany, the leader of the EU, and I had been writing it bit by bit. In October 2018, while I was working on it, Chancellor Merkel announced her retirement from politics in 2021. Feeling that this would be a historical turning point for the EU, I began revising the manuscript's structure. Chancellor Merkel's tenure lasted 16 years, from 2005. The history of the Euro, the single currency launched in 1999, almost entirely overlaps with her time in power. While the history of the EU and the Eurozone will continue, Chancellor Merkel's legacy is so significant that it would not be surprising if the era were categorized into 'Before Merkel' and 'After Merkel.'

Since I was to deepen the discussion on Germany, I believed that framing it around the retirement of such a prominent figure as Chancellor Merkel would attract more interest. Thus, I chose the current title and centered the content on the Merkel era. While the book naturally contains many discussions on my specialties of economics and finance, I also made an effort to handle political and diplomatic aspects as thoroughly as possible. Furthermore, I organized the points of discussion across three timeframes—present, past, and future—to ensure the book is easy to read.

Furthermore, this book attempts a comparison between Germany and Japan. Many Japanese people tend to think that "Germany and Japan are similar." However, looking back at politics and the economy since the 2000s, there is a strong sense that Japan has been lagging behind Germany. Certainly, structural strengths unique to the EU, most notably the Euro as an "eternally undervalued currency," have undoubtedly benefited Germany, which may seem unfair from a Japanese perspective. However, the fact that almost no economic slowdown was seen throughout the 16 years of the Merkel era is likely due to the steady resolution of political challenges deemed "painful but necessary," such as the Schröder reforms. Many of the issues addressed by the Schröder reforms apply to Japan today. Rather than simply lamenting the unfairness, I believe Japan must adopt an attitude of hungrily absorbing what can be learned from Germany.

After Merkel: What Comes After the "Strongest"

Daisuke Karakama

Nikkei BP, Nihon Keizai Shimbun Publishing

292 pages, 2,640 yen (tax included)

*Affiliations and job titles are as of the time of publication.