Angela Merkel has won her point, and the Europe that didn't quite bow to German tanks has bowed to German banks - except for one troublesome island.
Nicholas Kulish, writing in the New York Times, has some observations:
Even as European leaders put together their latest response to the euro crisis last week, a German-American clash over how best to manage a vast financial crisis and put the world economy back on a sound footing was set in stark relief.
Chancellor Angela Merkel of Germany defied skeptics and laid the groundwork for a deeper union that she said rights the mistakes of the euro’s birth and puts integration on a stable path for the long term. In the process, she forced German fiscal discipline on Europe as the prescription for the ills that afflict the region.
Obama, and lots of economists, think it won't work and will provoke a major world recession. Of course the markets also get to have their say.
In the end, Mrs. Merkel’s view clearly won out over Mr. Obama’s. “Merkel is calling the tune and writing the notes,” said Mr. Joffe, the publisher of Die Zeit.
Whether Mrs. Merkel’s strategy works is a question that markets will begin to ask on Monday, whether she likes it or not.