A savior, a villain or both?

Sentiments about Germany among its European counterparts should be mixed at the moment.

In a debt crisis that is growing deeper, the influence of Germany whose economy and finance are in good shape has reached a new level.

With signs that the credit rating of France, the second largest economy of the continent, may also be downgraded and the US on the other side of Atlantic being hardly able to help out, Germany is taken to the centre stage of this grand rescue show and at the same time, has drawn the anger of the weak economies hit hardest by the debt turmoil.

Protests against the International Monetary Fund (IMF) which has imposed conditions to require indebted countries to implement austerity measures in exchange for loans to deter bankruptcy took place in Greece, Italy and Spain. Fingers of discontent are also pointed to Germany’s harsh domination of the agenda and so-called solutions on the table.

Such an elevation of role of Germany, in both the political and economic arenas, is to a large extent inevitable.

It took the central European giant several decades to re-emerge from being the most condemned historical culprit of the World War II and another decade or so to recover from the costly reunification with West Germany and East Germany.

Die Deutschen have a name of self-discipline and endurance. While people in most of the rest of Europe are borrowing to live, spend and retire early, die Deutschen has been highly self-restrained in spending more than their treasury can afford them to and quietly proactive in enhancing the nation’s competitiveness.

Germany’s sound fiscal health has proven crucial for the European Central Bank to be nominated as the ultimate gatekeeper against a potentially catastrophic financial collapse in Europe.

An accumulation of fortune is no miracle for Germany. Every single cent of reserve has to be saved and this has to be done in a prolonged period. Asians share most of such experience, in part due to the equally, if not exceedingly, strict requirements set forth on them by IMF in the late 90s financial crisis, in addition to their saving culture and lack of a trusted social welfare system at home. The calls from IMF to cut spending and even add tax were perceived as a conspiracy of the West to topple Asia.

This time comes with the rescuer being Germany and the rescued being its neighbours.

Having led a laid back and carefree life in most of the post-war years, people of the economically fragile European countries might have found it harder to adapt to a meagre, deprived life style as a result of IMF loans than Asians who had been troubled by poverty.

However, simply looking a bit more forward would find the crux of the issue no longer lies at whether they should accept the game plan or not. It has become whether the giant would break down as well with all the angels falling. Beware of a sinking Titanic.