Economics
Awkward Alliance Running Germany Exposed by Greek Crisis
Angela Merkel, Germany's chancellor, sits beside Wolfgang Schaeuble, Germany's finance minister. Photographer: Krisztian Bocsi/Bloomberg
This article is for subscribers only.
In 2000, Angela Merkel pushed past Wolfgang Schaeuble on her way to the top of the political ladder. As finance minister, he’s won her pledge of a free hand in policy making in exchange for his loyalty.
Now the awkward alliance that forms the core of Europe’s financial crisis-fighting effort is under its biggest strain yet. As officials prepare a third Greek bailout, Merkel is holding fast to the view that the 19-member currency union must stay intact. Schaeuble has pushed back, dangling the threat of expulsion to what he considered an untrustworthy government.