Germany’s revival has reversed its role in Europe. Less than a decade ago, Germany was a bumbling behemoth beset by chronic unemployment and pathetic growth. As its more aggressive neighbors such as Spain, Britain and Ireland rode the craze in global finance to stellar performances, they looked at Germany as their stodgy old uncle, unable to change outdated, socialist habits and adapt to a new world. But the financial crisis proved just the opposite. While Spain, Ireland and other former euro-zone highflyers tumble into debt crises, victims of excessive exuberance and risky policies, a steady but reformed Germany has emerged as Europe’s dominant economic power. According to the OECD, Germany accounted for 60% of the GDP growth of the euro zone in 2010, up from only 10% in the early 2000s. “We changed from the sick man of Europe to the engine,” says Steffen Kampeter, parliamentary state secretary at Germany’s Ministry of Finance in Berlin.

Germany’s engine, however, has spewed toxic fumes. As manufacturers rev exports, the rest of Europe has been unable to compete. Some 80% of Germany’s trade surplus is with the rest of the European Union. The more German industry excels, the more other Europeans feel that Germany’s success comes at their expense, cracking open schisms within the euro zone just when the region can least afford them. “There is frustration with Germany,” says André Sapir, a senior fellow at Bruegel, a Brussels-based think tank. “Germany is moving ahead, but what are they doing for the rest of Europe?”

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When the rich fall on hard times, they often end up resorting to selling the family jewels to meet their debts or living expenses.

That is the image that came to mind after hearing reports that Deutsche Borse was in advanced talks to merge with NYSE Euronext…in a seeming merger of equals. But the German exchange operator would wind up with a majority stake in the New York Stock Exchange, an icon of the city from which it takes its name.

The Big Board is the very embodiment of U.S. capitalism, and for it to fall under foreign control can’t help but be disquieting to many Americans. The takeover of this citadel of securities trading at the intersection of what may become Wall and Broad Strasse could raise a similar ruckus as the acquisition of that midtown Manhattan icon, Rockefeller Center, by Japanese investors in the late 1980s.

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Billionaire Nicolas Berggruen, the owner of Germany’s Karstadt chain of department stores, makes do without a home and has no personal attachments. Now he seems to have found his great mission. He wants to make democracy work, and to create a better world….

….Berggruen wants to help democracy to stop getting in its own way.

“That’s the principle,” he says, and orders another double espresso. He believes that he has found the magic formula for significant reforms: a strong council of the wise. The right timing is also critical, he says. “You always have to show up when there’s a crisis.” Unfortunatey, says Berggruen, societies are only open to change when they are almost finished.

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Quietly at first but less so now, Germany is breaking out of its postwar identity ”“ the assumptions and understandings that held it in place for 60 years. Germany is shedding the past, busting old taboos and being more assertive. What an evolving Germany will look like in 20 or even five years is unclear, but will have profound consequences for Europe and the West. Much of the recent breakout is due to a rising German industrial base achieved by elbow grease, niche market savvy, and, as is often said here, by “doing our homework.”

Germans have looked around lately to find they have the preeminent world-class export economy in Europe. No one else comes close. German precision tools are coveted in Asia and Russia like Fabergé eggs. Germany is building much of the Summer Olympic and World Cup facilities in Brazil. The next generation of Eurostar trains linking the Continent and Britain will be made by Siemens of Germany, not, as they traditionally have been, by Alstom of France ”“ a blow to French pride.

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Beset by a series of sex abuse and financial scandals, the Catholic Church in Germany is seeing membership plunge as 2010 comes to a close, according to a series of surveys conducted by German media outlets.
The results released did not include an overall nationwide tally, but based on figures for individual dioceses, tens of thousands of Catholics have opted to officially leave the church over the course of the year.

The departures are not just a matter of filling church pews, but also coffers, since people who officially separate from the church are no longer required to pay a church tax automatically withdrawn from their salary.

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The global advertising market should continue to recover steadily over the next three years driven by markets such as China, which is expected to overtake Germany as the world’s third-largest ad market in 2011, according to the latest forecast from Publicis Group SA’S (PUB.FR) ZenithOptimedia.

Advertising spending in China is expected to grow 51% over the next three years to reach $34.24 billion in 2013, said Zenith.

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Credit default swaps (CDS) measuring risk on German, French and Dutch bonds have surged over recent days, rising significantly above the levels of non-EMU states in Scandinavia.

“Germany cannot keep paying for bail-outs without going bankrupt itself,” said Professor Wilhelm Hankel, of Frankfurt University. “This is frightening people. You cannot find a bank safe deposit box in Germany because every single one has already been taken and stuffed with gold and silver. It is like an underground Switzerland within our borders. People have terrible memories of 1948 and 1923 when they lost their savings.”

The refrain was picked up this week by German finance minister Wolfgang Schäuble. “We’re not swimming in money, we’re drowning in debts,” he told the Bundestag.

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One day near the middle of the last century a minister in a prison camp in Germany conducted a service for the other prisoners. One of those prisoners, an English officer who survived, wrote these words:

“Dietrich Bonhoeffer always seemed to me to spread an atmosphere of happiness and joy over the least incident, and profound gratitude for the mere fact that he was alive”¦ He was one of the very few persons I have ever met for whom God was real and always near”¦ On Sunday, April 8, 1945, Pastor Bonhoeffer conducted a little service of worship and spoke to us in a way that went to the heart of all of us. He found just the right words to express the spirit of our imprisonment, and the thoughts and resolutions it had brought us. He had hardly ended his last prayer when the door opened and two civilians entered. They said, “Prisoner Bonhoeffer, come with us.” That had only one meaning for all prisoners”“the gallows. We said good-bye to him. He took me aside: “This is the end; but for me it is the beginning of life.” The next day he was hanged in Flossenburg.”

A suspect package containing a detonator, batteries and a ticking clock was found on a suitcase checked onto a Munich-bound plane, German police have said.

The bag was detected before it could be loaded on the flight from Namibia.

The flight was delayed for several hours but landed safely at Munich on Thursday morning.

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China kept up a drumbeat of criticism of U.S. easy money policies on Tuesday, warning two days before a G20 world economic summit that Washington could destabilize the global economy and inflate asset bubbles.

Nearly a week after the Federal Reserve announced it was going pump as much as $600 billion into the economy, world leaders continue to bash the plan, saying it will flood global markets with cash without doing much for the U.S. recovery.

President Barack Obama acknowledged in Jakarta that the Group of 20 rich and developing nations “still have a lot of work to do” to ensure balanced global growth.

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During the Third Reich, Germany’s foreign ministry staff across Europe cooperated in the mass murder of Jews and others, according to a government-sponsored study released Thursday in Berlin.

The report says German diplomats during the Nazi era were far more deeply involved in the Holocaust than previously acknowledged. It also shows how West German diplomats after the war worked to whitewash history and create a myth of resistance and opposition to Nazi rule.

The report is a devastating indictment of Germany’s war-era diplomatic corps, that long cast itself as relatively “clean” of Nazi war crimes and tried to portray any wrongdoing as the result of a few bad actors.

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No big developed country has come out of the global recession looking stronger than Germany has. The economy minister, Rainer Brüderle, boasts of an “XL upswing”. Exports are booming and unemployment is expected to fall to levels last seen in the early 1990s. The government is a stable, though sometimes fractious, coalition of three mainstream parties. The shrillest protest is aimed at a huge new railway project in Stuttgart. Amid the truculence and turmoil around it, Germany appears an oasis of tranquillity.

To many of its friends and neighbours, though, the paragon is a disappointment. Its sharp-elbowed behaviour during the near-collapse of the euro earlier this year heightened concerns about Germany’s role in the world that have been stirring ever since unification 20 years ago. Speeches, seminars and scholarly articles by nervous Germans and Germany-watchers are a booming cottage industry. A recent essay published by Bruegel, a Brussels think-tank, explains “why Germany fell out of love with Europe”. Another, from the European Council on Foreign Relations, alleges that Germany is “going global alone”. Jürgen Habermas, Germany’s most distinguished living philosopher, accuses his country of pursuing an “inward-looking national policy”. “How can you not ask Germany questions about its vision of the future of Europe?” wonders Jacques Delors, who was president of the European Commission when the Berlin Wall fell. Even a pacific and prosperous Germany causes international angst.

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The Federal Reserve’s push toward easier monetary policy is the “wrong way” to stimulate growth and may amount to a manipulation of the dollar, German Economy Minister Rainer Bruederle said.

Fed Chairman Ben S. Bernanke yesterday gave Group of 20 finance ministers and central bankers meeting in Gyeongju, South Korea an overview of the U.S. central bank’s efforts to jumpstart the world’s largest economy. His strategy, which investors expect will soon include greater asset purchases, drew criticism at the talks, said Bruederle.

“It’s the wrong way to try to prevent or solve problems by adding more liquidity,” Bruederle told reporters yesterday, saying that emerging-market officials were among the critics. Bruederle, a member of the Free Democratic Party, the junior partner in Chancellor Angela Merkel’s government, stepped in for hospitalized Finance Minister Wolfgang Schaeuble at the meeting.

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Attempts to build a multicultural society in Germany have “utterly failed”, Chancellor Angela Merkel says.

In a speech in Potsdam, she said the so-called “multikulti” concept – where people would “live side-by-side” happily – did not work.

Mrs Merkel’s comments come amid recent outpourings of strong anti-immigrant feeling from mainstream politicians.

A recent survey showed that more than 30% of Germans believed Germany was “overrun by foreigners”.

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The documentary “Nuremberg: Its Lesson for Today” is a historical artifact with its own torturous past, quite apart from the momentous events chronicled within its frames. Commissioned as an official U.S. government record of the trial in 1945-46, when 21 high-ranking members of the Third Reich were prosecuted for war crimes at an International Military Tribunal in Nuremberg, Germany, the 78-minute film by Stuart Schulberg was completed in April 1948.

By then, though, fears of a new war, this one with the Soviet Union, led the government to shelve the project. Over the years, attempts to revive it went nowhere. The negative mysteriously vanished. Without the efforts of Sandra Schulberg, who has supervised the reconstruction of her father’s labors by relying on a German print of the original, it might never have been seen again. Not until this September, when it premiered at the New York Film Festival, did the documentary receive a public screening in this country. (The film just concluded a limited-engagement run here at the Film Forum, and will be screened Friday in New York and Washington, D.C., before traveling to venues across the U.S.)

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The European Court of Human Rights ruled Thursday (Sept. 23) that a church organist’s employment rights were ignored when he was fired by a Catholic church for remarrying outside the church.

The court said German churches have some latitude in firing staff who violate the faith’s moral tenets, but said it must be weighed against the prominence of the job and the worker’s own rights.

The case involved Bernhard Schuth, the longtime organist at St. Lambert parish in Essent, who separated from his wife in 1994 and started a relationship with another woman in 1995.

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Almost from its first moments, the 21st century has been plagued by insecurity and doubt; the disputed election of 2000 has given rise to such a pervasive habit of political cry-babyist-conceit that a graceful concession speech has become the grown-up exception rather than the selfless rule. Tolerant America, which managed after the September 11th attacks of 2001 to make clear distinctions between peaceful Muslims and radical Islamists, has lately”“perhaps because her leadership seems unwilling to use meaningful words to maintain those necessary distinctions”“become confused about who to trust on that score….

This decade of believe-what-you-want truthiness has been disorienting and exhausting, and it makes the upcoming meeting between Pope Benedict XVI and Elizabeth II of peculiar import, for both of these octogenarians know all too well what happens when governments and ideologies loom too large, and distortion carries the day.

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…the Church sees with concern the growing attempt to eliminate the Christian concept of marriage and the family from the conscience of society. Marriage is manifested as a lasting union of love between a man and a woman, which is also directed to the transmission of human life. One of its conditions is the willingness of the spouses to relate one to the other forever. Necessary, because of this, is a certain maturity of the person and a fundamental existential and social attitude: a “culture of the person” as my predecessor John Paul II once said. The existence of this culture of the person depends also on social developments.

It can be seen that in a society the culture of the person is lowered; often it is derived, paradoxically, from the growth of the standard of life. In the preparation and support of the spouses, it is necessary to create the basic conditions to build-up and develop this culture. At the same time we must be aware that the success of marriages depends on all of us, on the personal culture of each citizen. In this connection, the Church cannot approve legislative initiatives that imply a reappraisal of alternative models of the life of a couple and of the family. These contribute to the weakening of the principles of the Natural Law and thus to relativizing the whole of legislation and also to confusion on the values in society.

It is a principle of the Christian faith, anchored in Natural Law, that the human person be protected precisely in a situation of weakness. The human being always has priority in regard to other objectives. The new possibilities of biotechnology and medicine often put us in difficult situations that seem to walk on the razor’s edge. We have the duty to study diligently to what point these methods can be of help to man and where, instead, it is a question of the manipulation of man, of violation of his integrity and dignity. We cannot reject this progress, but we must be very diligent. Once one begins to distinguish — and this now happens often in the maternal womb — between a worthy life and a life unworthy of living, no other phase of life will be safe, and even less so old age and infirmity….

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German pride did not die after the country’s defeat in World War II. Instead, like Sleeping Beauty in the Brothers Grimm version of the folk tale, it only fell into a deep slumber. The country has now awakened, ready to celebrate its economic ingenuity, its cultural treasures and the unsullied stretches of its history.

As Germany embarks on this journey of self-discovery, the question is whether it will leave behind a European project which was built in no small measure on the nation’s postwar guilt and on its pocketbook.

“Maybe it’s our time again,” said Catherine Mendle, 25, a school social worker strolling the grounds and halls of the square glass and concrete Chancellery building on a recent afternoon as part of a government open house. A military band played in the background, and Mrs. Merkel signed autographs for curious visitors.

“We have this extreme helper syndrome, to try to make the world love us again, and it’s completely overdone,” Ms. Mendle said. Germany, she said, had been reduced to simple stereotypes ”” Oktoberfest, auto factories, the Holocaust. Its rich traditions in music and literature, and its enduring emphasis on social welfare and a strong commitment to the environment, deserve more respect abroad and at home, Ms. Mendle said.

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The Obama administration and the Federal Reserve want to fix the United States economy by spending more money. But while that approach might work for Europe, it is risky for the US. The nation would be better off embracing traditional American values like self-reliance and small government.

There’s no question about it: The 20th century was America’s era. The United States rose rapidly from virtually nothing to become the most politically powerful and economically strongest country in the world. But the financial crisis and subsequent recession have now raised doubts about its future. Are we currently witnessing the beginning of the end of the American era?

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The crucial issue [on the economy] is getting the fundamentals right. The Germans are doing better because during the past decade, they took care of their fundamentals and the Americans didn’t.

The situation can be expressed this way: German policy makers inherited a certain consensus-based economic model. That model has advantages. It fosters gradual innovation (of the sort useful in metallurgy). It also has disadvantages. It sometimes leads to rigidity and high unemployment.

Over the past few years, the Germans have built on their advantages. They effectively support basic research and worker training. They have also taken brave measures to minimize their disadvantages. As an editorial from the superb online think tank e21 reminds us, the Germans have recently reduced labor market regulation, increased wage flexibility and taken strong measures to balance budgets.

In the U.S., policy makers inherited a different economic model, one that also has certain advantages. It fosters disruptive innovation (of the sort useful in Silicon Valley). It also has certain disadvantages ”” a penchant for over-consumption and short term thinking.

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Lutherans world-wide are already buzzing about 2017, the 500th anniversary of Martin Luther’s 95 Theses, commonly regarded as the starting point of the Reformation. But no one’s quite sure about the right way to observe the occasion.

Should Lutherans celebrate the profound insights of a brilliant theologian into the gospel? Or should they lament the splintering of the Western church and the physical and spiritual intra-Christian wars that followed? Should Lutherans lord it over Catholics or should they apologize? Will Catholics ignore the anniversary and its significance altogether, or condemn it; or will they find a way to celebrate it too?

On top of all this, many believe, Christians are and remain in the grip of an “ecumenical winter.” Despite the high hopes for church reconciliation and even reunion through most of the 20th century, the past 25 years have seen waning interest in ecumenism on the popular level, and scandal and schism consuming the churches’ attention at the institutional level.

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Germany has sparred with its European partners over how to respond to the financial crisis, argued with the United States over the benefits of stimulus versus austerity, and defiantly pursued its own vision of how to keep its economy strong.

Statistics released Friday buttress Germany’s view that it had the formula right all along. The government on Friday announced quarter-on-quarter economic growth of 2.2 percent, Germany’s best performance since reunification 20 years ago ”” and equivalent to a nearly 9 percent annual rate if growth were that robust all year.

The strong growth figures will also bolster the conviction here that German workers and companies in recent years made the short-term sacrifices necessary for long-term success that Germany’s European partners did not. And it will reinforce the widespread conviction among policy makers that they handled the financial crisis and the painful recession that followed it far better than the United States, which, they never hesitate to remind, brought the world into this crisis.

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In many countries, including the United States, there are calls for the government to spend more to jump-start the economy, and to avoid the temptation to cut back as debts mount.

Germany, however, has decided to cast its lot with fiscal prudence. It has managed rising growth and falling unemployment, while putting together a plan for a nearly balanced budget within six years. On fiscal policy and economic recovery, Americans could learn something from the German example.

Twentieth-century history may help explain German behavior today. After all, the Germans lost two World Wars, experienced the Weimar hyperinflation and saw their country divided and partly ruined by Communism. What an American considers as bad economic times, a German might see as relative prosperity. That perspective helps support a greater concern with long-run fiscal caution, because it is not assumed that a brighter future will pay all the bills.

Even if this pessimism proves wrong more often than not, it is like buying earthquake or fire insurance: sometimes it comes in handy. You can’t judge the policy by asking whether your house catches on fire every single year.

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The call that drove a stake through the heart of one nation and gave another sweet revenge after 44 years was this World Cup’s most dramatic moment.

And also its most disappointing.

It wasn’t just Frank Lampard and England that deserved better than the outrageous blown call that denied them a valid goal and sent Germany to a 4-1 victory and a place in the quarterfinals.

Soccer deserves better.

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I am still in shock that Frank Lampard’s obvious goal was not allowed. Very good to hear Jurgen Klinsman on ESPN say “it’s a disgrace.”

[Paul] Krugman also told Handelsblatt he wouldn’t rule out sanctions against Germany if it continued to rely on its export-driven model. “If the euro falls to parity with the dollar, the Europeans are going to be surprised by the demands that will come out of the U.S. Congress, and I would support that,” he said.

That fiscal and economic policy critique probably won’t gain any more traction in Germany than his monetary policy one. Germans see their government finances and trade competitiveness as an example to be followed by Greece, Portugal and other troubled countries in Europe. And they clearly don’t see the U.S. model as one worth chasing.

Wolfgang Franz, who heads the German government’s economic advisory panel known as the Wise Men, tore into Krugman ”” and the US ”” in an op-ed in the German business daily Wednesday, titled “How about some facts, Mr. Krugman?”

“Where did the financial crisis begin? Which central bank conducted monetary policy that was too loose? Which country went down the wrong path of social policy by encouraging low income households to take on mortgage loans that they can never pay back? Who in the year 2000 weakened regulations limiting investment bank leverage ratios, let Lehman Brothers collapse in 2008 and thereby tipped world financial markets into chaos?” he wrote.

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Nearly half of Germans want a change in Chancellor Angela Merkel’s center-right coalition government, with one out of five wanting her to resign and call new elections, the latest poll showed Wednesday.

The findings in the poll conducted by Forsa for Stern weekly news magazine showed that a further 22% want back the grand coalition of conservative parties and the Social Democrats, which Ms. Merkel headed in the previous legislative term.

Just 8% said the chancellor can continue governing as she has done since the coalition won the elections in September.

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The rebellion against the 1930s fiscal and monetary policies of the Euro-complex is gathering pace.

Il Sole has published a letter by 100 Italian economists warning that the austerity strategy imposed by Brussels/Frankfurt risks tipping Europe into a self-feeding downward spiral. Far from holding the eurozone together, it will cause weaker countries to be catapulted out of EMU. Others will leave in order to restore sovereign control over their central banks and unemployment policies.

At worst it will blow the EU apart, leading to the very acrimony that the European Project was supposed to prevent.

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Spain has upped the ante in a high-stakes poker game with Germany, pushing for the release of EU stress test results for major banks in a move that risks precipitiating a dramatic escalation of Europe’s financial crisis.

“We’re not afraid of transparency,” said the Spanish Banking Association (AEB), saying the full truth would put an end to rumours battering Spain’s instutitions. El Pais reported that the government backs the initiative, putting it on a collision course with Germany which insists on secrecy.

Josef Ackermann, head of Deutsche Bank, warned last week that it would be “very dangerous” to publish the results of each bank, fearing that it would trigger flight from weak lenders and set off a chain reaction.

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