Germany's power and the weakening of states in a globalised world: deconstructing a paradox

It is somewhat ironical to ponder Germany's power at a time when radical changes due to globalisation vastly limit the efficiency of state actions worldwide. Certainly, Germany's resources increased with reunification – though the country also has to bear its costs. An enumeration of the – possible – resources of German power provides us, however, with little understanding of the nature of German power, embedded as the country is in a European system from which it derives its strength. Hence, only an analysis of this system fully renders the picture, contrary to what neo-realists and liberals might assume. While Germany did exercise a semi-hegemony over Western Europe in the monetary area up to EMU, the further integration of the EU has altered the European structure and diffused Germany's power. A particular configuration allowed Germany to devise one-sidedly the rules of EMU. This configuration does not exist in other issue-areas, such as, for example, defence and enlargement. This does not mean that power is absent from Germany's tool-box: political credit in particular is abundant. Yet in a larger Europe, where coalitions are more issue-oriented and hence more volatile than formerly, Germany's power will turn out to be more limited than its demands for recognition may lead us to believe.