It started two years ago, but at last it looks like the pieces will come together during the next summit on December 8 and 9. Conditions demanded that Merkel, the ECB and the IMF configured the mechanism for recovery in Europe.
Until yesterday, France tried to get government leaders to agree to reforms separately and that later they could fiddle around with their budgets as they like. But Merkel?s opinion prevailed.
She does not like the agreements made by countries that could break the euro and unbalance Europe?s main currency. She wants a rapid reform employed in two phases that would be imposed by the Court of Justice in Luxembourg and would enforce automatic sanctions.
Also going against the French grain, Merkel insists that the Eurobond is established quickly. But she admitted that austerity is not the solution. What will be the rule in the meantime now that Germany thinks that there are worthy people governing the peripheral countries? Draghi said on Thursday that he would buy debt for the sake of strong fiscal unity.
Last week we learned that European central banks will loan struggling European nations some of the cash they need. But they will be under a watchful eye. "We will not obviate the fact that peripheral countries need to make sacrifices," said Merkel. After all, the German thesis is that the PIIGS cannot offer the competition necessary to stymie contagion.
That is the foundation of the euro that Merkel envisions: a marathon that Europe has just started, fueled by cash pumped in from outside sources so that a unified Europe can reach the finish line.
