Germany and Britain: An alliance of necessity

Europe needs Germany and the UK to form an alliance. These two countries are closer than they have been for a generation on many vital issues. But to realise their potential for partnership, the UK has to end its ambiguity about the euro, while Germany has to reform its economy and armed forces. The European Union has to make fundamental changes to its institutions and budget, and its economies require deep structural reform. But it lacks leadership. The Franco-German relationship, which drove major policy initiatives like monetary union, has become a drag on further progress.
Heather Grabbe was research director at the CER (2000-2004) and Wolfgang Münchau is editor-in-chief of Financial Times.