Commentary: Germany Is Leading In The Wrong Direction

This is not Germany's--or Europe's--finest hour. Former Chancellor Helmut Kohl, the most revered European statesman of his generation and the man most responsible for German reunification and the creation of Europe's single currency, stunned his countrymen on Nov. 30 by admitting that he oversaw a campaign slush fund during his years as head of government. The honorary chairman of the opposition Christian Democratic Union may be forced to make more damaging admissions as German prosecutors look into cash payments made by a Bavarian arms dealer who played a role in the export of German armored personnel carriers to Saudi Arabia.

More than Kohl's legacy is at stake. His mea culpa is the latest sad reminder of the leadership crisis facing Europe's dominant economy. Once Germany was the Continent's voice of probity, flogging its less disciplined Latin neighbors into fiscal shape. Together, Kohl, his tough Finance Minister Theo Waigel, and imperious Bundesbank President Hans Tietmeyer strong-armed France and Italy into accepting the spending restraints that set the stage for the euro's launch last January.