A vision for a Europe governed by rule-based order

Wolfgang Schaeuble resembled a commanding political figure in both Germany and Europe. It would not be an overstatement to assert that, for a substantial span of challenging years, the Eurogroup operated within the sphere of his influence – member-states actively sought his favor, aligning themselves with his policy initiatives.

In all fairness, Schaeuble harbored a visionary outlook at a time when numerous European politicians were complacent, epitomized by the prevailing attitude of “kicking the can down the road” that characterized an entire era. His vision extended to a politically united Europe, governed by a rule-based order. He recognized that these rules were not universally applicable, hence his recommendation of Greece “temporarily” exiting the euro. In reality, if Greece had exited the euro, it is likely that more countries would have followed suit, which he did not necessarily view as a bad thing.

However, as the Covid-19 pandemic exemplified, rigid rules, divorced from economic realities, are unsuitable. This was particularly critical, given the inadequacy of these rules in addressing the challenges of a post-financial crisis world.

Schaeuble embodied a distinct type of politician who perceives the world in turmoil but falters in redefining both their role in the evolving landscape and the requisite responses. On a personal level, he possessed the ability to exude charm and, at times, even charisma. However, he was notably resistant to criticism, whether from a Greek finance minister or the president of the European Central Bank.

His pet mantra was “rules are rules, and the only thing that matters is their implementation.” His legacy, I am afraid, will invite a stern judgment from future historians.

Euclid Tsakalotos is a New Left MP and former finance minister.