German policy-makers genuinely believe the harsh medicine for Greece and others is the right thing to do, he added. In some ways, Germany is “trying to universalize its own history,” Mr. Kundnani noted. That history includes an extreme leeriness of inflation and debt, plus more recent experience about a decade ago with a series of successful economic reforms, including an overhaul of its labour market.

“I don’t see Germany as being an outlier. I see it rather as someone who is in the middle ground and seeking a balance. Germany is taking a lead by managing the debate.”