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War and Default in Europe Pose Merkel’s Biggest Challenge

War and Default in Europe Pose Merkel’s Biggest Challenge

(Bloomberg) — After almost a decade as German chancellor, Angela Merkel faces a moment of truth as a resurgent Russia and fed-up Greeks challenge her blueprint for Europe’s future.

As bloodshed in eastern Ukraine escalates and the new Greek government rejects austerity championed by Merkel, her deliberate leadership style may be reaching the limit of its effectiveness.

With Europe’s post-Cold War order and its unifying currency at stake, the weight of global and domestic expectations is pushing Merkel out of her comfort zone and into two direct confrontations. Both adversaries and allies have repeatedly underestimated Merkel’s determination as she rose from obscurity in an East German lab to become the world’s most powerful woman.

“It underscores how much Germany is really the pivotal power in Europe and Angela Merkel is the pivotal leader,” Daniel Hamilton, head of the Center for Transatlantic Relations at the Paul H. Nitze School of Advanced International Studies in Washington, said in an interview. “Much of it has to do with Germany’s success, but much of it also has to do with default by other powers. It’s not like she or Germany aspires to this role.”

Merkel’s status as Europe’s go-to leader will be on display when President Barack Obama hosts her at the White House on Monday. In the run-up, she’s resisting pressure by U.S. politicians to send arms to Ukraine’s government.

The biggest risk for Merkel is if either crisis spiraled out of control. At that point, she would have failed to address “German concern about stability,” Hamilton said.

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