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With the German economy stagnating and the FDP partner Lindner as Finance minister not willing to invest in the German economy or in defense, Chancellor Scholz fires Lindner. One of the problems that the Social Democrats accepted in the coalition with the Greens and FDP is the role given to the FDP which has acted as a brake on German investment in the economy. By comparison US president Biden has invested a trillion dollars in the US over the last 4 years for infrastructure, chips, science, manufacturing.The result is that the US economy is in stronger shape. It comes a bit late for Scholz but it shows the urgency of the issue and the need to tackle it as the coalition has lost popularity by sticking with the FDP and not able to offer Germans the program they were elected to accomplish of growth and investment in housing, childcare and other areas of the economy.

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Museums, state offices, libraries and police stations in the southern German state of Bavaria are required to display a cross in the building entrance area as part of a new state regulation issued by prime minister Soder. This is intended to remind people of Bavaria's history and culture. Some institutions such as the Bavarian State Library are taking a minimalist approach by hanging a small cross behind the circulation desk.

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Full face veils for women are now a topic in the immigration debate in Germany. Interior Minister Thomas de Maiziere now favors a ban on full face veils, agreeing with state level party members of the Christian Democratic Union. CDU interior ministers are now in agreement to come up with legislation to require that people show their faces where necessary "for living together in our society." Maziere says the Social Democrats SPD party agrees with much of this agreement, called the Berlin declaration. Chancellor Merkel told news group RND that she understands and accepts that "a fully covered woman has little chance of integrating in Germany." Some CDU officials such as state premier of Hesse, Volker Bouffier, say its all about liberating women, because he thinks it simply isn't true that this is what a woman wants. Other CDU leaders interior ministers in Berlin and Mecklenburg, Henkel and Caffier, say dual citizenship needs to be abolished. The Berlin Declaration put off this issue by requiring a report on this by 2019, on whether it helps integration. The Berlin Declaration calls for 15,000 additional police officers, though the association BDK of police officers says this is not enough. ...

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Refugees in Germany are 3.48 million in 2024 at 4 percent of the population, government data shows. This is 60,000 more than in 2023. One third of them are from Ukraine and many of them seek a return to their home country. Clara Bunger a member of the German parliament requested the information from the government. Bunger says- "It's in clear contradiction to the misleading portrayal of an alleged 'national emergency. Such scaremongering deliberately distracts from actual social problems and uses fear to make refugees a scapegoat." This distraction from the problems of cost of living is why immigration hurts workers and families, why PM Mette Frederiksen, Denmark, PM Michel Barnier, France, US president Biden/Harris who negotiated the legislation with Republicans in Congress to close the Border are taking this important step to refocus on the future of America and Europe, and the world at large. ...

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The German Chambers of Commerce and Industry President Heinrich Driftmann told reporters in Berlin that the new government should overhaul the tax code and improve credit access for companies. The German chamber wants to see changes to the corporate and inheritance taxes. He said that even if it was considered taboo companies needed more flexibility in the labor market. Merkel has promised labor unions that keeping social protections will be a priority in her administration. Economists say it will be difficult to cut taxes because unemployment will rise to 11% in 2011 as Germany's economy contracts 5% this year, and this will mean less tax revenues and increasing costs for social spending.

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Germany's deputy finance minister, Jorg Asmussen, was nominated by the German government to the executive board of the ECB. This follows the resignation of Jurgen Stark. Asmussen was originally appointed by the previous finance minister, Peer Steinbruck, and is from the SPD party. He was retained by Finance Minister Schaeuble because he had experience with the global financial crisis of 2008. Both Asmussen and the new Bundesbank president, Jens Weidmann, are students of Axel Weber, who was a professor before becoming central banker.

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Following the defeat of chancellor Merkel's CDU party in the 2016 Berlin state election, getting just 17.6% of the vote, chancellor Merkel looked reflective and a bit emotional about the result. She urged Germans to understand that this decision on refugees will benefit Germany in the long run. She said she would work to regain the people's trust. Looking back she said-"If I could, I would turn back time by many, many years to better prepare myself and the whole German government for the situation that reached us unprepared in late summer 2015." She says the decision was "absolutely right" to admit the refugees from war torn Syria, but accepted that "it led to a time when we did not have enough control over the situation." Both the CDU and the SPD, the main parties, lost about 6-7 percentage points each in votes cast. Gainers were the Free Democratic Party with 6.7% of the vote, who gained votes from the CDU. For the SPD votes were lost to the Greens and the left party Die Linke each party winning over 15% of votes.  Both the CDU and the SPD had candidates who did not attract voter interest. A popular former Mayor of Berlin from the SPD did not run in this election. The anti-immigrant AfD party gained  about 14% of votes.  ...

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The close alliance between the CDU and the CSU in Bavaria appears to be unraveling. The immigrants at German borders have dwindled down a trickle, about 11,000 immigrants today compared to the wave of immigrants entering Germany in 2015. The CSU's prime minister in Bavaria Mr. Soder and the Federal Interior minister from the CSU Mr. Seehofer, blame the conflict between the two parties on the 2015 decision by Merkel on immigration. The German ARD broadcaster shows 62% of Germans favor stronger action on immigration. The pressure on the CSU comes from the gains by the anti-immigration party AfD in recent national elections. The CSU hopes that by shifting its own position on immigration to a standoff with the CDU and Merkel's position it can hold off the Afd in the elections in Bavaria in October 2018. The pressure on Merkel comes from members in the CDU and from the SPD leadership, which have accomodated some of the criticism of open immigration to reduce the immigrants at German borders, yet now see the need to meet any challenges to Merkel's authority. This is why the head of the SPD, Ms. Nahles called Mr. Soder's push for a confrontation on the immigration issue as acting "like a bonzai Trump." The CDU party leaders in Bavaria call for a "axis of the willing" joining leaders of the governments in Austria and Hungary. and the newly elected government in Italy to impose immediate controls on immigration at the borders. Merkel says she is open to different points of view within the CDU-CSU alliance, but action should be based on keeping the European Union together, and be taken after EU meetings in Brussels. Will this result in a fall of the government? Angela Merkel has adapted to the changing situation on immigration leading to the small trickle in new immigrants at German borders today. Even if the AfD anti immigration party joins the CSU the percentage of the vote for the AfD is mainly in the eastern part of Germany, and CSU in Bavaria, with 12.6% voting AfD in 2017 elections, and about 7% voting CSU mainly in Bavaria. This compares with the Left at 8.9%, Greens at 9.2%, and SPD at 20.5% for a combined 38.6% of the vote that favor Merkel's new coalition policies. This combined with the 25% of the vote gained by Merkel's CSU party gives it about 64% of the vote and about 489 seats in the 709 seat German parliament. A test of Merkel's authority is not likely to be sustained. By making this a pro-European position Merkel has shifted the issue from one of immigration which is now minimal and one on which Merkel has adapted her policies to a stand on Germany as leader with France of the European Union. At this particularly sensitive time when Germany and France are negotiating with the U.S. on trade and Britain on Brexit, German public opinion is likely to consider the impact of new elections and more uncertainty as not good for Germany. With the SPD, Left, Greens and CSU having 64% of the vote, and the anti immigrant parties CSU, AFD about 20% concentrated in the less economically developed eastern part and in Bavaria, the chances that Merkel's position would be weakened or her authority challenged is very unlikely.   ...

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Angela Merkel is faced with the problem of getting German public opinion to support the bailout of Greece, Ireland, and then Portugal and next Spain. At the same time she wants to be seen as committed to the euro and the European Union. She is pushing for bondholders to bear a part of the costs of the bailout as part of their responsiblity for decisions they made, so that the German government and taxpayer is not left with the burden. This is not working out well and she is losing public support.

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German wages overall slipped in 2007 in real terms and are not keeping up with inflation,they have declined in 4 of the last 5 years according to economists so there is considerable pressure to increase wages. Wages as a share of national income has been falling steadily since 2003. And there is a lot of worker resentment to the information now readily available about what the managerial elite is making. One survey by Kienbaum Consultants shows that German managers earnings increased by 17.5% last year. The scandals at Siemens and the other scandals involving CEO of Deutsche Post and other scandals of Hartz at Volkswagen have undermined public confidence in the country's mangerial elite to the point that only 15% of the public have any confidence in them according to poll by TNS Emnid a polling and research company. Local eletions in Hamburg confirmed a shift to the left and to Social Democrats which will make it more difficult for the Christian Democrats under Merkel to execute their agenda of freeing up the economy....