Germany’s Power and the Weakening of States in a Globalized World: Deconstructing a Paradox

It is somewhat ironical to ponder Germany’s power at a time when radical changesdue to globalisation vastly limit the efficiency of state actions worldwide. Certainly,Germany’s resources increased with reunification – though the country has to bear the costsof reunification. An enumeration of the – possible – resources of German power provides ushowever with little understanding of the nature of German power, embedded as the country isin a European system from which it derives its strength. Hence only an analysis of this systemfully renders the picture, contrarily to what neo-realists and liberals might assume. WhileGermany did exercise a semi-hegemony over Western Europe in the monetary area up toEMU, the further integration of the EC has altered the European structure and diffusedGermany’s power. I will argue here that only a particular configuration allowed Germany todevise one-sidedly the rules of EMU, which is absent from other schemes, such as defense,enlargement etc. This does not mean that power is absent from Germany’s tool box : politicalcredit in particular is abundant. Yet in a larger Europe, where coalitions are more issueoriented,hence volatile than formerly, Germany’s power will turn out to be more limited thanits demands for recognition may lead us to believe.