But in the end, the referendum and Greece’s defenders could not sway the German public or their elected leaders. Even as most major European states softened their positions, Berlin breasted the tide of critics and held firm. German negotiators sidelined the naysayers and ensured the creditors’ net position remained substantially unchanged. And through dint of its financial power, Berlin compelled the Greek government to agree to austerity measures rejected by the majority of Greeks and contrary to the promises and policies of the ruling party.

Of course, Germany’s enduring strength does not equate to a hegemonic impulse or a renewed desire to master the continent. (For that reason, critics overreach badly in conjuring fears of a Fourth Reich.) Instead, Chancellor Merkel has behaved much like any other leader in her position would: she has used imbalances in relative power to pursue political ends. The outcome merely illustrates how wide those imbalances really are.

The Prospects for Continued European Integration:

Although the European project was conceived in order to liberate the continent from power politics, it has failed to do so. Berlin has used its relative strength to enforce an intrusive financial regime that straitjackets the Greek economy while ensuring that German bankers and taxpayers see their loans repaid.

This clash of interests cannot be easily resolved. Economists have spoken about the need for a fiscal union to complement the monetary one, where the common currency would be tied to common decisions about government spending. However, this is merely a policy solution to a policy problem. It is true, of course, that a fiscal union would eliminate many of the perverse incentives and myopic choices that led to the summer’s dramatic events. Yet this policy prescription overlooks the extent to which the course of the crisis has been charted predominantly by competing national interests and disparate bargaining power. In short, it is a policy offered without any regard for politics.

The crisis has laid bare the paradox at the heart of the European project. Up until now, the continent has been integrated largely pursuant to a shared vision buoyed by goodwill and trust. However, recent events have highlighted the economic need for institutional reform while putting it firmly beyond political reach. After the Grexit debacle, it is hard to imagine Germany and Greece—to say nothing of the remaining 26 members of the EU—coming together to agree on tighter political ties. Without this new accord, though, the project will remain buffeted by power politics and an increasingly skeptical public.

Sean Mirski is co-editor of Crux of Asia: China, India and the Emerging Global Order and a graduate of Harvard Law School.

Andrew J. O’Shaughnessy is an economic development professional with the New York City Economic Development Corporation.

Image: Flickr/European Council