I get the impression that many wouldn't know who Merkel is.
I think everyone with a passing interest in politics has heard of Angela Merkel. I suspect our colleagues over the pond were being slightly facetious.
The EU is the largest trading bloc in the world, the Euro is an international currency second only to the US dollar and Germany largely dictates economic policy.
The idea that Germany dictates economic policy to Europe is nonsense which it gets tiresome to hear. What does it take to block a German proposal in the European Council? France, Britain, Poland and Malta*. That's it. So if Germany is leading an overwhelming large coalition of EU members with some proposal or other, she can still be blocked by a few dissenters, because that's how the EU's designed.
When Germany gets its way, it's because other countries agree with them. It's because they've got France, Britain, Poland and most of the smaller nations to sign up for their proposal. That's not dictating - that's leading.
But the main thing to notice is that Germany does not always get its way. The banking union wasn't Germany's idea. The German government disagreed with most of its powers. But there was nothing Germany could do about this, since they have no power to dictate terms and have to go along with the majority when it goes against them.
*With the understanding that this is just one arbitrarily constructed combination of nations - there are many that would do.