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Why is Germany shooting its own stagnating economy in the foot? | Simon Nixon

A proposed Italian-German bank merger makes sense for Europe, but Berlin is opting for domestic protectionismA potential merger between a German bank and an Italian rival would not normally elicit much interest beyond the business pages. But these are not normal times. The Italian bank UniCredit recently provoked a political backlash in Germany by acquiring a 21% stake in the German lender Commerzbank. Even chancellor Olaf Scholz weighed in, calling the Italian move “an unfriendly attack”. The significance of this row runs far beyond the worlds of Italian and German finance.News of the acquisition came just weeks after the publication of a report by Mario Draghi, the former president of the European Central Bank, on how to address the EU’s declining competitiveness against the US and Ch...

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