Angela Merkel, speaking to the German parliament at the start of her third term as chancellor, said last week that “Germany will only be strong in the long term if Europe is strong.” If only she were prepared to act on that insight. The outlook for the euro area is poor -- the European Commission expects growth of just 1.1 percent next year and unemployment to remain above 12 percent -- but confidence seems to be picking up in Germany and some other countries amid tentative signs of recovery. Meanwhile, the situation in Greece (where almost 30 percent of workers are unemployed), Spain (the same) and other weak, ... (full story)