Greek drama fails to stir bruised Germans

By Steve Rosenberg BBC News, Berlin

Germany's economic motor appears to have stalled

The European Union's weakest economy is drowning in debt - but Europe's largest economy is not rushing to throw a lifeline.

"Who's to blame for the crisis?" asks today's edition of the tabloid Bild. "It's Greece!"

Another paper, Die Welt, poses this question in an internet poll: "Is it right for the EU to help Greece out of the mess?" Around 90% of respondents have answered "No".

Why are Germans so reluctant to assist? After all, Germany embraced the European project, the whole idea of a European Union. Whatever happened to solidarity? What is wrong with bailing out a fellow member state in need?

From the point of view of the German public, everything.

First, it is a question of principle. Germans are generally frugal, they are used to living within their means. Many here ask: Why should they have to bail out a country like Greece, which has been so profligate and racked up massive debt?

What is more, Germany has enough problems of its own right now, trying to nurse its own economy back to health.

Economy fears

According to the latest GDP figures, the German economy failed to grow at all in the final quarter of 2009. Investment is weak and unemployment rising. Germany's Economy Minister, Rainer Bruederle, has warned that the recovery is still fragile.

There is also concern about what could happen if Germany does not step in to help

If Berlin steps in to provide Greece with loans or guarantees, Germany risks having to pay more interest on its own national debt. And it is the German taxpayers who will have to foot the bill.

Add to that predictions in the newspapers that an aid package for Greece could bump up prices in Germany - on everything from oil and gas to jeans - and you can see why Germans are worried.

And not just the public, but the politicians, too.

In Brussels this week Chancellor Angela Merkel said eurozone countries would "stand shoulder-to-shoulder with Greece". But she may have given the cold shoulder to the idea of an EU bail-out.

Eurozone weaknesses

Berlin believes the onus is on Greece to put its house in order, cut costs and slash debt. There is suspicion, too, that any package of financial assistance to Greece may be unconstitutional under German law and break EU rules, too.

But there is also concern about what could happen if Germany does not step in to help.

If Greece defaults on its debts, that will almost certainly hit German banks. And it could spark a domino effect across Europe - with other shaky economies crashing, too. That would be a disaster for the eurozone.

For now, Berlin is hoping that pledges of solidarity and words of support will be sufficient to steady markets and to prevent the Greek economy from unravelling.

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