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Germany

Has Germany (and Europe) reached peak Merkel?

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In the span of six days, German chancellor Angela Merkel has made a teenage Palestinian refugee cry with her government’s stand on refugee and immigration policy (then tried to pet her, in what must be one of her most cringe-worthy moments as chancellor), reiterated her increasingly isolated position in Europe in opposition to LGBT marriage equality and almost allowed her finance minister Wolfgang Schäuble to force Greece out of the eurozone, in the process undermining Merkel’s authority both at home and within the wider eurozone.Germany Flag Icon

Some week.

Merkel, who won a narrower-than-expected victory in the 2005 election, reached the apex of her political power in September 2013, when her governing Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Union) nearly won an absolute majority in the country’s parliamentary elections. Despite being forced back into a ‘grand coalition’ with the rival center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party), Merkel’s popularity crested. At long last, she had won a clear personal mandate for her cautious, seemingly ideology-free leadership.

But when faced with policy issues — like Greece, LGBT rights and immigration — featuring such sharp contrasts, Merkel’s popularity was always going to fall from those stratospheric levels.

The crisis over Greece’s future highlighted the limits of Merkel’s conciliatory governing style — to sit back, wait for a consensus to emerge and follow public opinion, even (or especially) if it means co-opting a rival party’s positions. That’s how Merkel has handled everything from nuclear power to raising the minimum wage. But there’s a limit to that kind of governance. Continue reading Has Germany (and Europe) reached peak Merkel? →

Germany

Photo of the day: Helmut Kohl at Brandenburg Gate

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amazingPhoto credit to Andreas Mühe/VG Bild-Kunst Bonn for BILD.

This is perhaps the most haunting photo in world politics in 2014.Germany Flag Icon

Helmut Kohl, who was first elected chancellor of West Germany in 1982 and who left office in 1998 following his final term as the chancellor of a reunified Germany, is today long out of frontline politics and, since a 2008 stroke, has been confined to a wheelchair. He sits alone in this photo for Bild at night in the glow of the Brandenburg Gate, one of many points that divided East Berlin from West Berlin for the better part of 28 years.

It’s astonishing that, with Sunday’s 25th anniversary of the fall of the Berlin Wall, which ultimately resulted in the reunification of Germany and became a harbinger of the collapse of the Soviet Union, we’ve almost reached the point where the Berlin Wall has been down longer than it initially stood.

Even as Mikhail Gorbachev, still around as an icon of the revolutionary change of that era (and despised, to this day, in Russia), is warning that Ukraine could spur a new 21st century cold war, Sunday was an opportunity to celebrate the universal desire for freedom. That was as true in 1989 as it is in 2014, when many walls still remain, from Gaza to China’s ‘great firewall.’

For Germany, the reunification of East and West has been very successful in some ways, others not. It’s almost comical today to imagine British prime minister Margaret Thatcher telephoning Gorbachev, frantically and practically begging him to stop German reunification. But when we think about the chiefly German-led European Union of 2014, with its emphasis on tight budgets (instead of GDP and jobs growth) and its peculiarly German reticence as regards debt and inflation (even in the face of growing deflationary pressure), there may have been something to Thatcher’s warnings, after all. Ulrich Beck captures the peculiar problem of German Europe in a new short book, translated earlier this summer into English.

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RELATED: Has the first Ossi chancellor been good or bad
for the former East Germany?

* * * * *

German reunification is itself something of a cautionary tale about the perils of implementing a currency union in what, in 1990, was most certainly not an optimal currency zone. Though the past 25 years haven’t been horrific for the six eastern German states that once constituted the German Democratic Republic, it’s hard to say that the former GDR has done better than Poland or other former ‘Iron Curtain’ countries. That, in part, may have been due to the effects of conversion of East German currency on a 1:1 ratio with the West German deutsche mark.

Continue reading Photo of the day: Helmut Kohl at Brandenburg Gate →

Germany

Merkel’s CDU-CSU, Gabriel’s SPD stumbling toward a not-so-grand coalition in Germany

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gabriel

We’re less than two weeks from December.  That means that the Bundestag, the lower house of Germany’s parliament, has been sitting for about a month, and we’re weeks away from the self-imposed deadline that chancellor Angela Merkel placed on securing a new coalition government.Germany Flag Icon

In case you forgot, Merkel won a handsome victory in the September 22 federal election, when her center-right Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Party) — together with the Christlich-Soziale Union in Bayern (CSU, the Christian Social Union in Bavaria) — won 311 seats in the Bundestag, just five seats short of an absolute majority.  It was the biggest victory for Merkel’s Christian Democrats in nearly two decades, harkening back to the wide margins that former CDU chancellor Helmut Kohl won in 1990 and in 1994 in the afterglow of the relatively successful reunification of West and East Germany.

But while the CDU-CSU savored a sweet victory, their coalition partners between 2009 and 2013, the Freie Demokratische Partei (FDP, Free Democratic Party) failed to win any seats in the Bundestag for the first time since 1945, leaving Merkel with two options — a minority government or a coalition government with more leftist partners.

Though Merkel flirted throughout early October with Die Grünen (the Greens), a tantalizingly novel coalition that would have remade the German political spectrum, the Greens pulled out of talks on October 16.  So for over a month, coalition negotiations have been exclusively among the CDU, the CSU and the center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party).  Earlier in November, the coalition talks were going so well that CSU leader and Bavarian minister-president Hoorst Seehofer worried that the harmony would subsume the real policy differences between the German right and the German left.

As Merkel quipped earlier this year, Christmas comes sooner than you think, and Merkel, Seehofer and the SPD’s leader, Sigmar Gabriel (pictured above), are under increasing pressure to agree on a coalition agenda — and given that the CDU-CSU’s 311 seats and the SPD’s 192 seats constitute 79.8% of the entire Bundestag, expectations are high that such a wide-ranging coalition will tackle long-term reform both in Germany and in the European Union.  Moreover, any coalition deal agreed among the three parties must also win subsequent confirmation from a vote of 470,000 SPD members in December.

So what’s holding up the deal?  Continue reading Merkel’s CDU-CSU, Gabriel’s SPD stumbling toward a not-so-grand coalition in Germany →

Germany, Hesse

German election results — federal Bundestag and Hesse state results (in five charts)

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Election officials released provisional results overnight in both the federal Germany election to determine the makeup of the lower house of Germany’s parliament, the Bundestag, and the Hessian state elections.Germany Flag Iconhesse flag

Here’s where things stand in the total national ‘party vote’:

bundestag2013

As predicted by exit polls earlier Sunday, neither the new eurosceptic party, the Alternative für Deutschland (AfD, Alternative for Germany) nor the longtime liberal Freie Demokratische Partei (FDP, Free Democratic Party) won more than 5% of the vote — meaning that they have not won any seats in the Bundestag.

The final total won by chancellor Angela Merkel’s Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Party) — together with the Bavarian Christlich-Soziale Union in Bayern (CSU, the Christian Social Union) — comes to 41.5%.  That’s exactly the same percentage that the CDU/CSU and chancellor Helmut Kohl won in the 1994 German elections, and it’s just 2.3% less than Kohl’s total in the 1990 elections, which came in the aftermath of the largely successful reunification of West Germany with East Germany.  It’s an absolutely huge win for Merkel — but we already knew that as polls closed Sunday.

Here’s a look at how Sunday’s election result compared to the previous elections in September 2009:

versus2009

There are no absolutely clear winners except the CDU/CSU, which improved on its 2009 totals by a staggering 7.8% — including a nearly 1% improvement by the CSU (which is pretty incredible, given that the CSU seeks votes solely in Bavaria, home to just 12.5 million of Germany’s 80 million residents).

The FDP obviously had a disastrous result — the party’s worst result in Germany’s postwar history, which comes after its postwar high of 14.6% just four years ago.  Both leading FDP figure and economics and technology minister Rainer Brüderle, party leader and vice chancellor Philipp Rösler and former party leader (until 2011) and foreign minister Guido Westerwelle are all likely to step aside from their top leadership positions.

The center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party) improved slightly on its 2009 result, which was a postwar low for the party under chancellor candidate Frank-Walter Steinmeier, who served as foreign minister in the 2005-09 CDU/SPD ‘grand coalition’ government.  But the SPD’s performance under its 2013 candidate Peer Steinbrück, who served as Merkel’s grand coalition finance minister, was its second-worst result in postwar German history.

Die Grünen (the Greens) also suffered a retreat from its 2009 totals and especially from polls in 2011 that showed them winning between 20% and 25% of the vote.  The poor result follows an unfocused campaign with at least four different leaders.  The Green platform swung from promoting ‘Veggie Day’ to advocating tax increases, despite the fact that its electorate is becoming more moderate, less radical, older and wealthier.

Die Linke (the Left) appears to have retained its traditional strength as the second-most popular party in the eastern states (second to Merkel’s CDU), but it has also lost support since 2009.  Though its leaders were crowing that it will be the third-largest party in the Bundestag for the first time since reunification, the CDU appears to have made significant inroads into the Left’s eastern heartland.

Though the AfD had a superb performance, it obviously fell 0.3% short of entering the Bundestag and, while it will work hard to retain relevance in next spring’s European elections, it’s difficult to tell if it can retain and grow its strength between now and 2017.

Here’s the breakdown of the seats in the Bundestag — due to so-called ‘overhang seats’ resulting from the way in which additional seats are allocated to bring seat totals in line with the ‘party vote,’ there are 630 seats:

bundestag seats

With 311 seats, Merkel is five seats short of an absolute majority.  Without the option of her previous coalition partner, the FDP, it means that she has three options: Continue reading German election results — federal Bundestag and Hesse state results (in five charts) →

Germany

LIVE BLOG: Can Merkel win an absolute majority?

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With results yet to come in, the first exit polls show that German chancellor Angela Merkel winning a huge mandate.Germany Flag Icon

Here’s the ZDF exit poll:

  • Merkel’s center-right Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Party) and its Bavarian sister party Christlich-Soziale Union in Bayern (CSU, the Christian Social Union): 42.5%.
  • The center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party): 26.5%.
  • The democratic socialist Die Linke (the Left): 8.5%.
  • Die Grünen (the Greens): 8%.
  • Conservative, eurosceptic Alternative für Deutschland (AfD, Alternative for Germany): 4.8%.
  • Liberal Merkel coalition partner Freie Demokratische Partei (FDP, Free Democratic Party): 4.5%.

Let’s start with what we know.

How much of a victory is this for Merkel? It’s absolutely huge.

With 42.5% of the vote, Merkel’s CDU/CSU union would win just 1.3% less than Helmut Kohl won for the CDU/CSU in 1990 — and that was in the afterglow of reunification.

It looks like Peer Steinbrück will have led the SPD to a better result this year than Frank-Walter Steinmeier, the former foreign minister who led the SPD to win just 23% in the 2009 election.  It’s still not a great result for the SPD, and the exit polls show that the SPD didn’t actually narrow the gap in the final days as some pre-vote poll surveys had indicated.

Now let’s think about what’s still uncertain — it’s obvious that Merkel’s preferred coalition partner, the FDP, is struggling.  It would be the first time in Germany’s postwar period that the FDP fails to win enough seats to enter the Bundestag — their worst result was in 1969, when it won just 5.8% of the vote, and it follows their best-ever result from 2009 — 14.6%.  It’s been a spectacular collapse, and it’s hard to believe that Philipp Rösler’s leadership will survive very long.  There’s a lot of rebuilding ahead.

(Note that in Hesse, where state elections are being held, the FDP is falling short with just 4.8% as well.  While the CDU has won around 39%, the SPD is winning 31%, the Greens 10.5% and the Left 6% — and that means we could see another SPD-led attempt to govern with the support of the Left. Either way, it’s hard to see the current CDU/FDP coalition continuing to govern.  Here’s more on that race).

It’s still too soon to know whether the AfD or the FDP will win less than 5%.  But if they do, it’s conceivably possible for Merkel to win an absolute majority with just the seats of the CDU/CSU.  Thought 42.5% isn’t an absolute majority when the denominator is 100%, it comes very, very close when the denominator is 85.5% — the sum of the voter support of the four parties to clear the 5% hurdle.

If Merkel falls just a handful of seats short, and the FDP doesn’t enter the Bundestag, it may not be worth entering a coalition, but trying to govern with a very strong minority government.

Obviously, a ‘grand coalition’ with the SPD would be the most likely coalition, but as I’ve argued for weeks, a ‘black/green’ coalition between Merkel and the Greens has a lot of natural appeal.

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Update, 13:51 ET.

So it seems pretty clear that the CDU/FDP coalition that governs Hesse will not be reelected.  But neither will the SPD/Green coalition have enough seats to control the Hessian Landtag.  That leaves the Left, which will win around eight seats, as the kingmaker — just as in 2008, when the SPD found itself in nearly the same situation.  When that happened in 2008, it led to a year of disorder that ultimately resulted in snap elections in 2009.  SPD leader Andrea Yspilanti faced an internal revolt when she tried to form a government with the support of the Left, and Hessian voters gave the SPD 13% less support in the 2009 elections.  This time around, we’ll have to see if Thorsten Schäfer-Gümbel, the new SPD leader in Hesse, can deliver a more graceful partnership with the Left.

Volker Bouffier, the CDU leader, will also likely try to determine if there’s space for a grand coalition or even a CDU-Green coalition in Hesse.

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Update, 14:07 ET.

Even if Merkel wins an absolute majority of 300 seats in a 598-member Bundestag, there are a couple of good reasons why she might want to form a coalition with either the SPD or the Greens:

  • CSU hardliners.  With an ultra-thin majority, Merkel will not have a huge margin for victory.  That could risk pulling her further to the right.  Even if the AfD doesn’t make it into the Bundestag, Germany’s parliament already has a mildly eurosceptic party — the Bavarian CSU.  Top CSU leaders, including Bavarian finance minister Marcus Söder have called on Greece to leave the eurozone, which makes them about as eurosceptic as the AfD.  In a world where Merkel will want the flexibility to negotiate further bailouts for Greece, Portugal and other challenged European economies, and potentially a European banking union or greater fiscal control, she’ll want the support of a strong pro-European government.
  • Bundesrat considerations. With the likely loss in Hesse, the CDU/FDP will control just 10 seats in the Bundesrat, the upper house of the German parliament.  Leftists will control 41 seats, and CDU/SPD grand coalitions at the state level will control another 18 seats.  That means that Merkel will still have to look toward consensus in order to govern, and pulling either the SPD or the Greens into government could smooth the passage of legislation through the upper house.
  • Political calculation.  It may look like joining a coalition as Merkel’s junior partner is hazardous to your health as a political party.  The SPD, after four years in a grand coalition with Merkel, had a disastrous 2009 election and now the FDP, after four years in government, will leave the Bundestag altogether.  But a coalition with the Greens could make political sense for both the CDU and the Greens.  By separating the Greens from their traditional partners in government, Merkel could generate even more disunity on the German left.  But the Greens have had a difficult election — and there’s now evidence to show that they do better under a moderate, business-friendly platform (see the success of Winfried Kretschmann, the only Green minister-president, in the German state of Baden-Württemberg) than under the kind of leftist campaign — tax increases and advocating ‘veggie day’ — that the Greens ran in the federal 2013 campaign.  A turn to the center could really maximize the potential of the Greens in the 2017 election, and nothing could telescope that shift more than a partnership with Merkel that pulls Germany’s government ever so gently from the right to the center over the next four years.

Update, 15:58 ET.

Projections are now divided between showing the CDU/CSU with 295 seats, just short of a majority, and with 303 seats, just barely a majority:

Screen Shot 2013-09-22 at 3.52.18 PM

We’re obviously going to have to wait to know the final numbers.  Keep in mind also that there’s still a chance that the eurosceptic AfD could still sneak into the Bundestag.

 

 

Germany

Has the first Ossi chancellor been good or bad for the former East Germany?

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merkel1990

Does the rise of an East German (or ‘Ossi’) chancellor in Germany just 15 years after reunification — and her likely reelection 23 years after reunification — showcase just how fast the two Germanies have sutured into a common nation?Germany Flag Icon

Or does it highlight the extent to which the eastern former German Democratic Republic (GDR) has failed to catch up with the western former Federal Republic of Germany (FRG)?

The six eastern German states are home to just 16.3 million Germans today, a vast minority of the country’s 80 million-strong population.  But two days before Germans choose whether to give a third term to chancellor Angela Merkel (pictured above in 1990 as an activist for democracy in East Germany) — who was born in Hamburg, but grew up in the eastern city of Templin, in Brandenburg, where her father was a pastor — it all depends on whether you think the glass is half full or the glass is half empty.easternstates

Merkel comes from the Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Party), and it was her mentor Helmut Kohl who pushed for the swift reunification of Germany after the historic 1989 fall of the Berlin Wall, which had since 1961 divided the eastern city of Berlin into GDR and FRG sectors.

By some accounts, the six states that comprise what used to be the GDR are doing as well as can be expected less than a quarter-century after transitioning from a command economy to a market economy, and the end of ‘East German identity’ is already at hand:

The end of a country is on the horizon, a country that never formally existed: East Germany. A demographic group that also never formally existed is coming to an end, as well: the East Germans. It’s time for an obituary….  The old eastern German issues have been dealt with. The adjustment of pensions to western German levels is almost complete, and hopefully a uniform minimum wage will clear away some of the absurd differentiation into east and west. Eastern Germany no longer means very much to high-school and university students today. When younger people are asked where they are from, they usually mention the name of a city, a region or a state.

After all, Germany has had an eastern chancellor for the past eight years and, since March 2012, an eastern president in Joachim Gauck who fought hard against the DGR’s authoritarianism before 1990 and spent the first decade after reunification chasing down the phantoms of the DGR’s secret police, the Stasi.  The most significant transitional figure of post-reunification eastern politics, Matthias Platzeck, who has been minister-president of Brandenburg, the largest eastern state, since 2002 and a member of its government continuously since 1990, resigned for health reasons in August of this year.

Merkel and the CDU, according to polling data, are polling up to 37% — an increase from the 30% that the CDU won in the previous September 2009 elections.

But economic conditions in the six eastern states still lag behind the rest of Germany.

At the end of 2012, Germany’s unemployment rate stood at 5.5% (it’s 5.3% today going into the federal elections).  In each of those six states, the unemployment rate was significantly higher than the national average — compare that to the five largest states, all of which are in what used to be West Germany:

regional unemployment

Continue reading Has the first Ossi chancellor been good or bad for the former East Germany? →

Bavaria, Germany

FDP shut out of Bavarian parliament, CSU wins absolute majority

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horst

The result of today’s state elections in Bavaria has both good news and bad news in terms of Angela Merkel’s hopes to win a third term as chancellor in exactly one week.bavarian_flag_iconGermany Flag Icon

With results still coming in, the center-right Christlich-Soziale Union in Bayern (CSU, the Christian Social Union) will improve vastly upon its historically poor result in the prior September 2008 election, giving Bavaria’s minister president Horst Seehofer (pictured above) an absolute majority in the 187-member Landtag, Bavaria’s unicameral state parliament.

The current projection gives the CSU 101 seats, with just 43 seats for the center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party) and 18 seats each for Die Grünen (the Greens) and the center-right group of independents, the Freie Wähler (FW, Free Voters).

Here’s the latest snapshot of the result:

bavaria2013

That’s great news for the CSU, which has controlled Bavaria’s state government consecutively since 1947.  The Bavarian-based CSU is the sister party of Merkel’s Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Party), which competes everywhere else in Germany, and the two parties work together as a union for federal political purposes.  So the fact that the CSU increased its support by over 5% in what was already a center-right heartland is a sign that Merkel will be able to drive up the number of seats that the CDU/CSU will win in next week’s federal elections.

It’s an amazing turnaround for the CSU, which won less than 44% five years ago and was polling just 40% as recently as 2010.  It’s a huge win for Seehofer personally as well, given that his personality dominated the CSU’s presidential-style campaign, the same tactic that Merkel and the CDU have deployed for next week’s federal elections.  It puts Seehofer alongside recent CSU leaders who have dominated Bavaria’s recent past, such as Franz Josef Strauß in the 1970s and 1980s and Edmund Stoiber in the 1990s and 2000s.  Given the relative strength of the Bavarian economy vis-à-vis Germany and, especially vis-à-vis Europe, the CSU’s win is not surprising — Bavaria’s reputation long ago solidified its image as the land of laptops und Lederhose.

But it’s horrible news for the liberal Freie Demokratische Partei (FDP, Free Democratic Party), which won just 3.2% today, falling far short of the 5% threshold required to win seats in the Landtag.

Seehofer and the CSU depended on a governing coalition with the Free Democrats for the fast five years, and Merkel and the CDU/CSU govern in coalition with the Free Democrats at the federal level as well.  Since riding a wave of popularity in the late 2000s (the Free Democrats won nearly 15% of the vote in the 2009 federal elections), its public support collapsed shortly thereafter.  After a series of poor performances in state elections, foreign minister Guido Westerwelle stepped down as the party’s leader.  But its new leader Philipp Rösler, Germany’s first Vietnamese-born party leader, has hardly done much better.  Under his leadership, though, the Free Democrats actually gained support in two key state-level votes — in the May 2012 North Rhine-Westphalia election and the January 2013 Lower Saxony state elections.

The FDP’s loss in Bavaria comes at a devastating time, however.  Seehofer and the CSU in Bavaria will no longer need a coalition partner, but that’s not likely to be the case for Merkel next week, so Merkel needs the Free Democrats to perform much better nationwide in seven days.  While Merkel’s CDU/CSU widely leads in the polls in advance of next week’s federal election, Merkel is unlikely to win the kind of outright majority that Seehofer won today (because the rest of Germany tilts further to the center and to the left than the Catholic, socially conservative Bavaria).  Just as for Bavaria’s state elections, there’s a 5% threshold for winning seats on the basis of proportional representation in the Bundestag, the lower house of Germany’s national parliament, and polls show the Free Democrats treading at about 5% support nationally.

So if the Free Democrats win less than 5% next week, Merkel will be forced to look to other alternatives: an unstable minority government, return to a ‘grand coalition’ with the rival Social Democrats or a more creative solution, such as a ‘black-green’ coalition with the Greens.  Even if the Free Democrats win more than 5%, their ranks are likely to be so decimated that Merkel may be forced into an alternative anyway.  Continue reading FDP shut out of Bavarian parliament, CSU wins absolute majority →

Germany

What is Helmut Kohl thinking by endorsing the FDP in Germany’s elections?

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In an election campaign with few twists and even fewer turns, leave it to a blast from Germany’s past to shake up politics just 12 days before Germans head to the polls.Germany Flag Icon

In a move that seems baffling at first glance, former chancellor Helmut Kohl spent the weekend welcoming Rainer Brüderle, a former economics and technology minister, and Philipp Rösler, the vice minister for economics and vice chancellor, and the leader of the Freie Demokratische Partei (FDP, Free Democratic Party), to his home — and indicating that he was all but endorsing the FDP in elections later this month.

It’s odd for many reasons, not least of which because Kohl (pictured above, center, with Brüderle left and Rösler right), the longest-serving chancellor since Otto von Bismark, was the longtime leader of the center-right Christlich Demokratische Union (CDU, Christian Democratic Union) that chancellor Angela Merkel now leads.  Kohl, now age 83, has been out of frontline politics since 1998, when he lost his bid for reelection.  Among Kohl’s top accomplishments are vital roles in engineering both the reunification of West and East Germany and the development of the European single currency.

So what is Kohl up to?

There are a handful of reasons why Kohl might be campaigning so openly for the Free Democrats in the last stretch of the campaign, but none are as compelling as the explanation that Kohl is actually doing Merkel and the CDU a huge favor by boosting their coalition partners.

The Free Democrats are the junior partners in Merkel’s governing ‘black-yellow’ coalition, and though Merkel would prefer to continue governing alongside the Free Democrats, their support has dropped so low that it risks missing the 5% threshold necessary to win seats in the Bundestag, the lower house of the German parliament.  With the Christian Democrats holding a consistent double-digit lead over the center-left Sozialdemokratische Partei Deutschlands (SPD, the Social Democratic Party), and with voters preferring Merkel with a two-to-one margin over Social Democratic chancellor candidate Peer Steinbrück, there’s not much risk that the CDU will lose on September 22 — together with its Bavaria sister party, the Christlich-Soziale Union in Bayern (CSU, the Christian Social Union).

So if Kohl can bring a few crossover voters from the CDU to support the FDP, he can help guarantee that the Free Democrats make it back into the Bundestag with at least a minimum of seats, therefore facilitating the possibility that Merkel can continue her preferred coalition in a third term without resorting to a grand coalition with the Social Democrats (as she did from 2005 to 2009).  Crazy like a fox.

It’s a dangerous game, though, because there is some risk in that strategy.  Steinbrück delivered a strong performance in last week’s debate with Merkel and while it hasn’t helped him in the polls so far, the race could tighten in the closing days.  Moreover, the newly formed Alternative für Deutschland (AfD, Alternative for Germany), the country’s first eurosceptic party could steal votes from Merkel on the right, and it’s the one party that’s gaining in polls over the past week — it could even hit the 5% threshold to enter the Bundestag.  But at this point, with less than two weeks to go, a massive change would require a year’s worth of stubborn German public opinion to transform virtually overnight.  So it’s a risk that Kohl — and likely even the cautious Merkel — are probably happy to take.  Continue reading What is Helmut Kohl thinking by endorsing the FDP in Germany’s elections? →

Bavaria, Germany

Bavarian elections provides Merkel, CSU a dress rehearsal for federal German vote

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seehofer Exactly one week before Germans go to the polls to choose between center-right chancellor Angela Merkel and her center-left challenger Peer Steinbrück, Bavarian voters will elect its local state government in a key test for Merkel’s regional allies.Germany Flag Iconbavarian_flag_icon

The outcome isn’t incredibly doubtful because since 1947, Bavaria’s staunchly Catholic, business-friendly, socially conservative Christlich-Soziale Union in Bayern (CSU, the Christian Social Union) has controlled the 187-seat Landtag, the state legislature of Germany’s second-most populous state.

Given that the state has one of Germany’s — and Europe’s — best economies, the CSU looks set to strengthen its hold on Bavarian government in what amounts to a test run of many of the arguments that Merkel hopes will power her Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Party) to victory on September 22 alongside the CSU, which has been united with the CDU in federal politics for decades.  Merkel, who currently governs in an alliance with the liberal Freie Demokratische Partei (FDP, Free Democratic Party), hopes that voters will give her credit for steering Germany — and the entire eurozone — through the worst of a sovereign debt crisis that began in 2010 and an economic recession from which Europe may already be recovering.

But the CSU and Bavaria’s minister president Horst Seehofer (pictured above) can make an even more sanguine case on the basis of the Bavarian economy, which showcases several star multinational corporations, such as BMW, Siemens, and adidas.  Whereas the European Union had an average unemployment rate of 10.4% in 2012 and Germany had an unemployment rate of 5.5%, Bavaria’s was just 3.2%.  To consider just how staggering that is, consider that United States last had an unemployment rate that low in October 1953. It’s an economy that, at around  €465 billion ($610 billion), is about as large as the economy of the US state of Pennsylvania and even larger than the entire economy of Saudi Arabia, and nearly 1.5 times the size of the economy of neighboring Austria.

If the CSU is successful on September 15, it will mark a rebound from the previous September 2008 election, the CSU’s worst performance since 1954.  Five years ago, Bavarian voters went to the polls in the middle of an uncertain future, with the collapse of US financial firm Lehman Brothers and a global financial panic topping world headlines.  It was also a period of uncertain leadership within the CSU, Bavarian minister-president Edmund Stoiber resigned after 14 years in office following the resignation of his chief of staff, Michael Höhenberger, which itself followed accusations that Höhenberger snooped on the private life of one of Stoiber’s critics.  Günther Beckstein, Stoiber’s longtime interior minister, succeeded Stoiber and led the CSU through the 2008 election, but stepped down following the CSU’s historic loss.

Even though the CSU won just 43.4% of the vote (a drop of over 17% from its prior performance) and lost its absolute majority in the Landtag, it remained the largest party in Bavaria by far, outpacing the second-place Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party) by nearly 25% of the vote and Seehofer, a former health and food minister, easily won election as Bavaria’s minister-president in October 2008.

As the CSU and the SPD both suffered historic losses, two additional groups on the Bavarian right made extraordinary gains.  The first is the Freie Wähler (FW, Free Voters), a bloc of independent, unaffiliated center-right deputies, which won 10% of the vote, largely from disappointed CSU supporters, and entered the Bavarian Landtag for the first time.  The second is the FDP, which won 8% and 16 seats, returning to the Bavarian legislature for the first time in 14 years and providing the CSU with a stable coalition partner in Munich.  Even the socialist Die Linke (The Left) competed for the first time and won 4.3%, impressive in a state as conservative as Bavariabavaria Five years later, although polling data isn’t as ubiquitous for Bavaria’s state election as for the wider federal German elections, the CSU is polling higher than in 2008, and it may win over 50% of the vote, restoring the absolute majority that it enjoyed in the Landtag without interruption from 1962 to 2008. That’s good news for Seehofer, because the FDP is faring as poorly in Bavaria as it is in federal polling — the Free Democrats are in danger of missing the 5% threshold required to win seats in the Bavarian Landtag (and in the federal Bundestag as well).  Meanwhile, the Social Democrats are in danger of setting a new postwar low in Bavaria on September 15 and in federal elections a week later — it’s polling at around 18% in Bavaria, which is even worse than its 2008 result (18.6%).  Continue reading Bavarian elections provides Merkel, CSU a dress rehearsal for federal German vote →

Germany

Assessing the potential coalitions that might emerge after Germany’s federal elections

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roslerFDP

With now less than 40 days to go until Germany’s federal elections, polls show that chancellor Angela Merkel is by far the most popular candidate to return as chancellor and her party, the Christlich Demokratische Union (CDU, Christian Democratic Union), will clearly be the largest bloc in Germany’s Bundestag after the election. Germany Flag Icon

Polls have been remarkably consistent throughout much of the year leading up to the September 22 vote.  The center-right CDU, together with its Bavarian sister party, the Christlich-Soziale Union in Bayern (CSU, the Christian Social Union), overwhelmingly leads Germany’s largest center-left party, the Sozialdemokratische Partei Deutschlands (SPD, the Social Democratic Party), and voters overwhelmingly prefer Merkel to the SPD’s candidate for chancellor, Peer Steinbrück — by a nearly two-to-one margin.  Here’s the trendline from Infratest dimap, which released its latest poll this week:

chancellorgraph

This week’s news that Germany leads GDP growth in the eurozone, which itself pulled out of recession in the second quarter of 2013, will only buoy Merkel’s chances.  Barring a huge shift in public opinion that has only calcified over the past year, Steinbrück, a bland technocrat who comes from the right wing of the SPD and who served as finance minister in the ‘grand coalition’ government of 2005 to 2009, will lead the SPD to a loss of nearly historic proportions.  But while that means Merkel is very likely to return as chancellor, the composition of Merkel’s third government is less certain.

That’s because support for Merkel’s current coalition partners, the free-market liberal Freie Demokratische Partei (FDP, Free Democratic Party), has collapsed since the previous September 2009 election, when it won 14.6% of the vote and 93 seats in the Bundestag, a record-high electoral performance for the party.  But since 2009, the FDP has struggled to maintain a presence in local Germany elections, losing support in state after state.  Its decade-long leader Guido Westerwelle, the first openly gay party leader in German history, stepped down in April 2011 as party leader and vice chancellor (though he remains foreign minister) after the FDP won barely 5% in the state elections of Baden-Württemberg.  His successor as FDP leader is the Vietnamese-born Phillip Rösler (pictured above), who began his career in Lower Saxony (Niedersachsen) and who had served previously as health minister in the CDU/FDP coalition government from 2009 to 2011.

Although Rösler has not lifted the FDP back up to its 2009-level heights, he has managed to staunch the party’s decline.  In the May 2012 elections in North Rhine-Westphalia, Germany’s most populous state, the FDP managed to win 8.6% of the vote, an increase of nearly 2% from the previous election, though that’s largely due to the popularity of Christian Lindner, who led the FDP’s 2012 campaign.  More recently, though, in Lower Saxony’s state election in January 2013, the FDP won 9.9% of the vote, a gain of 1.7%.

It’s also because Germany’s electoral system is notoriously complex.  Germans will actually cast two votes in September — the first is for a candidate to represent one of 299 electoral districts in Germany, the second is for a German political party.  The second ‘party vote’ is meant to determine the party’s ultimate total share of seats in the Bundestag, and so a party will receive additional seats on the basis of the party vote sufficient to provide that its percentage of seats in the Bundestag is roughly equal to the percentage of votes it received pursuant to the party vote (so long as the party receives at least 5% of party vote support).  That means that the number of seats in the Bundestag changes from election to election — although it must have a minimum of 598 seats, it has had as few as 603 and as many as 672 since German reunification.

The FDP has struggled all year long to achieve merely 5% support in opinion polls and, while it’s doing better in polls than it was at the beginning of the year, there’s no guarantee that it will meet that threshold:

trendline2013germany

That means that, more than anything else, the composition of Germany’s next government turns on the FDP’s performance.  If it wins less than 5%, Merkel will not have the option of continuing a coalition with the FDP.  Moreover, even if the FDP wins more than 5%, it may still not win enough seats to cobble together a CDU/FDP majority in the 598-member Bundestag.

Furthermore, polls show that while German voters overwhelmingly prefer Merkel as chancellor, they actually favor a return to the CDU/SPD grand coalition, more than the current CDU-led government or a potential SPD-led government:

preferredcoalitions

Two additional coalitions — a CDU/Green government and a united left coalition among the SPD, Green and Die Linke (the Left Party) — also win significant support.

But what are the chances that any of these five coalitions will actually emerge after September 22?  Here’s a look at each potential coalition and the chances that it could form Germany’s next government.

CDUpreferredcoalitionThe current government: CDU/FDP.

Merkel prefers to continue her current coalition over any alternative because her political agenda matches well with the FDP’s political agenda.  Any negotiations between Merkel and the SPD or the Greens would entail huge concessions from Merkel that she would not otherwise have to make in coalition with the FDP.  But, as noted above (and as represented in the graph to the right, on the basis of current polls), it’s unclear if that coalition can win a majority.

Under Rösler’s leadership, the FDP is running on a campaign of lower taxes and liberalizing Germany’s economy, which is standard Free Democratic fare, and both the FDP and Merkel’s CDU oppose new tax increases.  Their largest policy difference might be same-sex marriage — the FDP supports it and the CDU (and especially the Catholic-influenced CSU) oppose it, although the FDP has taken a much stronger stand on privacy rights than Merkel’s CDU.

Even if they win enough seats to form a majority, no one expects the margin to be larger than the government’s current 21-seat margin.  So even a single-digit majority could turn out to be a Pyrrhic victory if Merkel finds herself forced to look outside her own government to enact her legislative agenda on an ad hoc basis, especially with respect to European Union matters, given the sometimes eurosceptic nature of many CSU deputies.  That’s hardly a recipe for stable government.

Polls in August show that together, the current government will win between 44% and 47% of the vote if the election were held today.  Unfortunately, that doesn’t give us much of an idea about whether they’ll have enough support in the Bundestag to form a majority.  Since reunification, Germany has held only six federal elections — they’ve resulted in three CDU-led governments, two SPD-led governments and a single CDU-SPD grand coalition. Continue reading Assessing the potential coalitions that might emerge after Germany’s federal elections →

Germany

Wolfgang Schäuble, the ‘big beast’ of German politics and a vital European policymaker at age 70

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I am also a week late to this — but it should be noted that Wolfgang Schäuble turned 70 last week, and it’s been an opportunity for the German media to reflect on a man who’s been a “big beast” (to steal a term from the UK’s Kenneth Clarke) of German politics.

The Guardian called him “the politician who has done more to shape contemporary Germany and Europe than anyone else currently in office in the EU.”

Schäuble, a lion of the Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Union), has been a member of the Bundestag, the lower house of Germany’s parliament, since 1972.  He served as a key ally of chancellor Helmut Kohl during Kohl’s reign from 1982 to 1998, including as minister of the interior and chair of the CDU in the Bundestag in the 1990s, leading negotiations on behalf of the Federal Republic of Germany (i.e., West Germany) for reunification with the German Democratic Republic (i.e., East Germany). He, alone among the current German government, was present in 1992 when the Maastricht Treaty brought the single currency into existence.

Kohl, however, refused to cede the limelight to Schäuble — the CDU lost the 1998 election and Schäuble himself was implicated in a party funding scandal in 2000.  By the time that the CDU regained power, it was under Angela Merkel and not Schäuble.  The falling-out between Kohl and Schäuble was so acrimonious that even today, Kohl refuses to take part in the many celebrations of Schäuble’s 70th birthday.

In 2004, Merkel refused to nominate him for the largely ceremonial role of the German presidency, another rebuke to a man who was all but assumed to be, at one time, a future chancellor.  But Merkel’s relationship to Schäuble has taken a different turn than his relationship with Kohl.  Schäuble, who served again as interior minister during Merkel’s “grand coalition” government from 2005 to 2009, has now served as finance minister since 2009.

As such, Schäuble, who has been paralyzed and uses a wheelchair since a 1990 assassination, at age 70, is arguably at one of the most engaged — and vital — points of his lengthy career in public service.

In the past week alone, he’s been talking up a plan to leverage the European Stability Mechanism, boosting the value of the euro when he said the currency’s salvation was “worth any effort,” and throwing cold water on the idea of a European bailout for Spain (picking a subtle fight with France while doing so).  The week before, he got into a row with Jens Weidmann, the president of Germany’s Bundesbank (Germany’s central bank) — Weidmann has opposed the move for the European Central Bank to buy the debt of eurozone countries directly.

It’s safe to say that he is second only to Merkel herself and European Central Bank president Mario Draghi in his centrality to determining the future of the euro.  Big beast, indeed.

When I think of Schäuble, I can’t help but also think of Clarke — if Clarke is a One Nation Tory, I think of Schäuble as a kind of One Nation Christian Democrat.

  • They both entered politics in the early 1970s, and rapidly became rising stars.
  • They both served as finance minister (in the UK, Clarke served as chancellor of the exchequer, which is the equivalent) in times of currency crisis — Clarke in the wake of the 1992 sterling crisis and Schäuble today, during the eurozone crisis.
  • They both watched their leadership prospects crumble away as their parties passed them over for a new generation (Merkel, in the case of Schäuble, and David Cameron and others, in the case of Clarke).
  • And they have both been, despite right-wing pressures from their respective parties, champions of the European project throughout their careers.

For better or worse, whatever the solution to the eurozone crisis, it seems nearly certain that Schäuble will be among its authors.