German foreign policy after unification: The end of cheque book diplomacy?

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Abstract
In this article, three interrelated arguments are made: first, the economic costs of unification have diminished German economic capacity and consequently its diplomatic flexibility; second, unification has reopened the debate within Germany over the desirability of European Monetary Union (EMU) and has led to the redefinition of the minimum conditions necessary for German participation in EMU; and third, unification has reinforced the tendency towards macro‐economic unilateralism in the Atlantic economy. In the conclusion, the three elements of the German economic strategy for post‐Yalta Europe are identified: translating German economic precepts into the framework conditions for the pan‐European economy; establishing Frankfurt as the financial hub of Europe; and protecting Germany's position as the commercial centre of Europe.