I don't think Merkel's strategy here is going to be very helpful for her or for the EU long-term. At least, she's not repairing the image that exists in some minds of the EU as an "evil, anti-democratic organization." Not if she makes the UK endure 2+ years of economic turmoil as 'punishment' for leaving. But I guess in the end, there are no winners here.
What should she do instead? Let the UK get all the perks from the EU while avoiding any of the costs?
It's not about "punishing" the UK for leaving. The UK punished itself by leaving. Now they should bear the consequences of their choice, plain and simple.
Like I said, there really are no winners. Because no matter what happens, it will inflame the far-right across Europe to push for more leaves; either leaving the EU is an attractive option, or the EU is a cancer that will resort to nefarious means of keeping countries from leaving and threaten them if they do. The Brexit could have very well started a domino effect, I'm afraid.
Or maybe it's just that the EU actually provides its member countries with plenty of advantages and that leaving is actually a suicidal gesture.
Was forcing on Italy that they must make Mario Monti the Prime Minister one of those advantages?
The EU does have a lot of good things but it and the ECB taking political control of countries is morally indefensible and no better than a military coup.