LyrArc Article Gist
This editorial in Der Spiegel magazine sees something positive emerging from the current state of politics in Germany with the fragmentation in political parties. It says this situation is something that is happening for some time now. In the Netherlands there are a number of parties working together in a coalition government. And in France the Macron movement swept away the old parties. Something similar is also happening in Italy with the Five Star Movement as elections approach in March 2018. This may be a positive development in that the days of 100 percent convention votes, and of career politicians who move up the ranks from one political committee to another, are over. Voters are acting in individualistic way, don't trust the elites and old big tent parties with career politicians who may not be responsive to people's needs.  Young people are eager for more participation, and this may be a good thing, says Der Spiegel. It points out that not just parties like AfD are gaining as a result. SPD support dropped to 16 percent in one poll same as AfD. The Christian Lindner's Free Democrats in Germany also are benefitting,Macron in France is benefitting, Sebastian Kurz in Austria is benefitting. Their parties they prefer to call as "movements" with some marketing and political platforms that appeal to young people. Macron's movement moved aside the old political system and brought in younger people, revitalizing the decaying political system. The conclusion for Der Spiegel is that this change is not entirely good or bad, its a challenge. Our focus should not be on propping up obsolete structures, breathing new life into old political structures could be a good thing with new younger voters looking for participation. So don't be afraid of voters. ...

LyrArc Article Gist
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.  ...

LyrArc Article Gist
Brandenburg Berlin metropolitan region of which Brandenburg and city of Berlin are separate states remains a strong economic region. This is where Germany has evolved under ruler Frederick since the end of the Thirty Years War in 1648. Dietmar Woidke of ruling Social Democrats is expected to win a fourth term in office with the SPD expecting 25% of the vote in the important state of Brandenburg next to Berlin. Even though the AfD right wing party is expected to do well approaching 25% of the vote, there are other factors at work. Sara Wagenknecht has rebranded the Die Linke Left party with immigration policy that is similar to policies now being accepted in Denmark, France, Netherlands and other EU countries that see the need to restrict immigration, drawing 15% support. A good example being Mette Frederiksen, Social Democrats in Denmark. A coalition with the Christian Democrats CDU with about 15% expected vote and Greens with less than 5% is likely for about 45% of the vote. Other factors that show a stable Brandenburg are the economy with the new regional airport hub of Berlin Brandenburg airport, a new Tesla factory, rich natural resources a third of the state of 2.6 million people being filled with forests and lakes, and a stable population after the reunification in 1990 without rural depopulation as in other parts of East Germany, only 12% people of immigrant background including Wagenknecht.   ...

LyrArc Article Gist
The Free Democrats led by Christian Lindner are polling about 4% a week before the elections in Germany. Lindner's FDP was part of the Scholz SPD Greens coalition after winning 11% of the vote in 2021. Elections would be held in 2025 March. Yet with FDP breaking away from the coalition as its popularity dropped elections will be held next week. From the beginning this coalition was not a good one as FDP supported the debt brake and no spending, when Greens and SPD promised investment in infrastructure that were neglected by Merkel's CDU. Germany economy as shown in the article alongside by Tankersely and Eddy reporting from Wittenberg in the eastern region, has not grown in 5 years. Crumbling infrastructure is seen everywhere in cities across the country and the rail system lacks much needed investment.  Scholz wants to reverse this with Made in Germany and remove the debt brake. The CDU wants to cut taxes and regulation. No one knows if the FDP will pass 5% of the vote needed to have representation in parliament. It happened before for FDP- before the 2021 election. ...

LyrArc Article Gist
Antonis Samaras continues his efforts to get the EU to agree to a two year extension for deficit targets agreed to in the March 202 bailout. He meets Merkel in Berlin, Aug. 24 and Hollande in Paris, Aug. 25. Merkel's coalition partners the Free Democrats oppose an extension. The opposition Social Democrats leader Steinmeier tells the Frankfurter Rundschau newspaper "its not very smart to abandon all conditions for aid over an extension of 12 months." Samaras tells the Sueddeutsche Zeitung newspaper: "our economy shrank 27%. Greece is bleeding, It is really bleeding." And German finance minister Schauble tells Germany's SWR2 radio that its too early for Greece to come back and say the agreed aid is insufficient considering that its ony 6 months since the March 2012 agreement. Merkel and other leaders in the Christian Democrats say they will wait till a report from the troika (the EU, ECB and the IMF) in October 2012 before responding.

LyrArc Article Gist
The first signs of a change in Germany's position to promoting growth in Greece came when German chancellor Angela Merkel told CNBC on May 15, 2012: "I have the will, the determination to keep Greece in the euro zone." She added that if Greece's leaders are looking for "stimulus to be pursued for growth in the euro zone, which we could pursue in the interest of Greece, we're open for this. Germany is open for this." The Social Democrats, SPD opposition leaders have long said that Merkel is able to change positions as the situation changes. Looking back she even disassociated herself from her mentor German chancellor Kohl when he was not willing to disclose the names of donors for illegal donations. This has given her the flexibility that another Christian Democratic party leader Schauble lacked in leading Germany. She has also seen poll numbers favoring the CDU dissipate quickly before the 2005 elections and is aware how quickly situations can change, as is happening now with the public in France, Netherlands, Spain, Portugal, Ireland, Greece, and eastern european EU countries growing weary of strict austerity policies pushed by the CDU. A faction of the CDU pushed for strict austerity policies at the recent CDU convention in Leipzig, Germany. Merkel told the CDU about charges that she had shifted on a number of core issues such as nuclear energy, social issues, minimum wage, and euro zone bailouts- "Our political compass has not changed. The context is changing. This is a time of epic change."...

LyrArc Article Gist
The CDU party selects Annegret Kramp-Karrenbauer as its next leader. Chancellor Merkel favored the state premier of Saarland, a small German state, as the next leader. Merkel told CDU delegates that the party was not the party it was in 2002 and praised the work of Karrenbauer in Saarland, in an indirect endorsement of the female candidate over Mr. Merz who favored taking the party to its conservative roots.  Merkel has pushed the CDU to the centre and sometimes to the left in an effort to sideline the Social Democrats, which worked till the migration and refugee influx led to a fragmentation in German political parties and decline in support for CDU. The election was close with Karrenbauer winning in the second ballot by a bare majority. Merkel plans to stay in office till 2021 and the party post in the hands of a close ally helps Merkel consolidate her legacy. Merkel made Karrenbauer Gerneral Secretary in 2018 in a move that was intended to move her to the top position. ...

LyrArc Article Gist
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....

LyrArc Article Gist
Peter Altmaier is director of the chancellery in Berlin, and is the person closest to Angela Merkel. This report in the Economist points out that Altmaier has played a critical role in steps taken by Merkel- as chief whip in parliament for the CDU during the Greece financial crisis and bailouts, as environment minister implementing the program away from coal based electricity, and in negotiating deals such as the deal with Turkey on refugees, and now with Brexit negotiations. Merkel has asked Altmaier to write her manifesto for the September 2017 election. A member of the CDU's liberal wing, Altmaier is known for being a scholar on German history, especially Bismarck, and a workaholic. Here he is mentioned as a bridge maker for the CDU to the Greens Party and was part of a group of CDU and Green Party politicians who met at an Italian restaurant in Bonn. As the moderates are now dominant in the Greens Party, a CDU coalition with the Greens could be shaped by Altmaier if the election results move in that direction. ...

LyrArc Article Gist
Italy's prime minister, Mario Monti put it best when he said in a speech in Brussels in April 2012: "If a country becomes more productive and competitive, but there is no demand for its products domestically or around it, growth will not materialize." There is a new shift in opinion towards a balance of fiscal discipline with growth measures to get Europe back on track. The feeling in different parts of Europe is that the German view of austerity alone will not work for Europe. And the view is coming from the far right to the far left, from Marie Le Pen, far right presidential candidate in France, to the far right leader whose move to withdraw support to the government in Netherlands on the issue of austerity measures led to its collapse. Geert Wilders, leader of the Freedom Party in the Netherlands, said: "we don't want our pensioners to bleed just to meet the dictates from Brussels." The IMF has put out research that questions what is now called "the German hypothesis." The "German hypothesis," is based on the unique experience of Germany with the Hartz reforms under chancellor Schroeder which were based on wage restraint by workers, the German "kurzarbeit" program of government support for retaining workers with lower pay during cyclical downturns, improving competitiveness of German companies, and conservative budget practices. There appear to be two exceptions to this. One is that demand has to be strong outside or domestically for a country to reduce unemployment and improve productive capacity utlilization as it increases competitiveness. This was the case as Germany made the Hartz reforms under Schroeder. Wage restraint acts as a form of devaluing currency for reducing the cost of its products to improve exports. All leading parties and the unions are now in favor of wage restraint and lowering wages to preserve jobs to improve France's competitive position. Germany had the benefit of a decade to implement these reforms to reduce unemployment, because demand was not declining domestically or around it during its reforms. The situation is different in Spain where in all likelihood demand would shrink further with unemployment rising from 25% to higher levels, and higher sales taxes. This is why Francois Heisbourg, special advisor at the Paris based Foundation for Strategic Research, says about the current situation in Europe, that destroyiing Greece with strict austerity alone wasn't something the EU can look back at with the sense of having done the right thing, for Spain it appears misguided and lacking careful thought. The editors of the Wall Street Journal expressed the same sense when they described the March 2012 bailout of Greece as a tragic sideshow, because the main purpose was to buy time and insulate the other larger economies in the EU by giving the French, Spanish and German banks time to improve their financial position. The Journal called it bad for Greece leaving it with debt at 120% of GDP till 2020 and no economic growth, and bad for democracy as it was done against overwhelming Greek public opinion- The Tragic Greek Sideshow, Feb. 22, 2012. Volker Perthes, director of the German Institute for International and Security Affairs, a Berlin think tank, says the Germans have always viewed German leadership in Europe with discomfort, and would prefer a leadership where several states, France, Italy, Spain, and other countries in the EU coalesce around consensus positions. This is historically true for the German position since chancellor Adenauer. With the Free Democrats in decline, and the Social Democrats and the Pirate party doing well in recent German elections and favoring consensus in Europe, Merkel's Christian Democrats need to rethink their policy to give greater weight to economic growth for a consensus position in Europe. ...

LyrArc Article Gist
Merkel's leadership as Germany goes through the economic crisis. There is not much enthusiasm for further reforms among the Social Democrats or the Christian Democrats. Other than raising the retirement age to 67, the mood is not for any changes in that direction. The economy will contract by 6.1% but Merkel's decision is not to go in for a big stimulus under pressure from the US, and instead stay with the status quo combined with help to workers for unemployment benefits and for retention of workers by companies. As elections approach Merkel is considered favorably, and according to a recent poll by Forschungsgruppe Wahlen nearly 60% are satisfied with the grand coalition of the CDU and the SPD, 78% think Ms Merkel has done well as chancellor, and 58% want her to remain on the job. Actually Merkel's popularity is behind the CDU's prospects, the CDU itself is popular among only 35% of voters. Her analytical habits from her training as a physicist show in the way she is governing, which is thoughtful, and connects well with voters. Merkel benefits from the reduction in unemployment. Unemployment fell from around nearly 5 million in 2005 to around 3 million in 2008. The risk is that Merkel's popularity may be affected by an increase in unemployment to 5.1 million from the averaage of 3.3 million in 2008, according to an OECD estimate. Merkel stands behind a German response to the crisis which is to support the priciples of a social-market economy, make unemployment as least painful as possible to the jobless, to keep every job that can be saved in the nonfinancial sector with a 115 billion euro "Germany fund" providing guarantees and credits to companies that are in trouble because of the credit crisis. Stimulus packages of 64 billion euros supported the auto industry with subsidies to car buyers, and subsidies to keep workers intheir jobs. The idea was to come up with a German version of the response to the crisis by balancing the need to respond based on German conditions, and the concerns for inflation and the budget deficit, that is shared by most Germans. THe vision offered by Merkel is that of a physicist daughter of a protestant minister in East Germany, who is low on the rhetoric and good on substance, and willing to make decisions based on careful study and discernment rather than ideology, without sharp swings in any direction. Her vision comes from her days as environment minister, which is quietly pushing Germany into the forefront of countries developing renewable energy, moving ahead in energy efficiency, with anational goal of cutting emissions by 40% by 2020. The other areas are immigration and education, both key to the future of Germany because of the huge demographic change happening there. She has afamily minister Ursula von der Leyden, who introduced "parents pay", a14 month stipend for parents of newborn children linked to salaries, and to to improve daycare by providing places for 35% of children aged three or less by 2013. And Merkel has approved 18 billion euros of additional funding for research and universities. Says Leyden Merkel has made "daycare" an acceptable term in the CDU, and made Germans accept that they are an immigration country. Which tells you that you have to look closely to find the reasons for Merkel's popularity, which does not carry the rhetoric of an Obama, but is just as effective in German conditions. There are deepseated demographic changes going on in German society, which require a cultural change, and change in mindset, such as that for daycare, immigration, and blending the best of the old in the social market economy with the new like the changes in the educational system. The Economist says that in big cities today nearly half of the children under 15 are immigrants or their children and grandchildren, who are more likely to be poorer, unemployed and with less education. ...

LyrArc Article Gist
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.   ...

LyrArc Article Gist
The 90 minute nationally televised debate in Germany between Angela Merkel and Peter Steinbruck before the September 22, 2013 national elections.

LyrArc Article Gist
The purchase of F/A-18 aircraft by Germany capable of delivering nuclear weapons stationed in Germany is critical to keeping the nuclear deterrance and the "nuclear sharing" agreement with the U.S. Older aircraft, the Tornadoes are now 40 years old. Chancellor Merkel has supported the purchase but this is now being called into question by its junior partner in the coalition government the SPD.  Leaders of the SPD party say they would block the purchase of 45 Boeing Company made F/A-18 jets proposed by Merkel's defense minister. Under NATO's nuclear sharing agreement going back to the 1950's it is believed there are about 180 B61 tactical nuclear bombs in rope, some 20 in Germany and spread out over Belgium, Italy, the Netherlands and Turkey. President Trump has said the U.S. will withdraw from a treaty with Russia that limits the presence of nuclear missiles in Europe because Russia is not living up to the agreement. This could lead to an arms race. The issue is leading to the beginning of a fundamental debate about nuclear armanent and military spending of a type that has not happened in Europe since 1982 when a rebellion in the SPD over the stationing of nuclear weapons in Europe led to the ouster of Chancellor Helmut Schmidt.  The Christian Democrats view the purchase of the F/A-18 at a time when Russia is updating its nuclear deterrance as fundamental to NATO and nuclear sharing. The SPD's leaders say nuclear sharing does not mean the need to host nuclear weapons, and give the example of Canada, a NATO ally that does not have U.S. weapons on its soil. ...