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An emerging new European political geometry

Attila Marjan

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A new political geometry is being established in the European Union which has global geopolitical relevance. The most important features of this development are the following:

          The pressing need to sustain Euro through deep economic reforms and political reforms has been and will play an important part in reshaping the institutional setup and the power distribution system in the EU;

          Germany has emerged as a new and less and less “reluctant” European hegemon;

          The United Kingdom has been and will be distancing itself from the EU. Moreover it will probably be faced with prolonged internal troubles (such as the issue of Scotland). These factors will result in loss of regional and international clout;

          France’s economic and political malaise is set to continue which will risk the country’s long established position as member of the Franco-German tandem without which no important EU-wide political reforms are possible;

          Poland, sensing the weakening of the UK and France has started to implement a new geopolitical agenda by presenting itself as a key European player both internally and externally and as an indispensable partner for Germany;

          In the second half of 2014, a new political cycle with new European Commission and European Parliament starts;

          An important new external factor is the re-emergence of an assertive Russia which will result in significant policy shifts in the EU (foreign and security policy, energy policy, and enlargement policy);

          A more clearly institutionalized two-speed Europe has become a realistic option for the Union, not at all a taboo any longer.

As a result, the EU member states (both the political class and the public) have to be prepared to accept these new political realities and also have to find institutional and political solutions to handle issues such as the future role of the UK in the European construct, the relations with Turkey, Ukraine and Russia, and to guarantee the long-term sustainability of the common European currency.

 

A radically different European political framework is appearing before our eyes. And in this new space the role of Europe’s major powers will change, and there will also be a shift in the relative weights of countries. Germany will be the greatest beneficiary of the rearrangement: it will clearly be the regional primate. Almost right across the spectrum, the German political elite supports closer integration, which will assist in mitigating fears of German hegemony, but the German-French tandem will no longer be regarded as a partnership of equals. History (and necessity) has made the economy – and the common currency – the driving force of federalism, rather than political institutional development or the construction of a European cultural identity, which would have favored the French.

 

The French wanted the euro – and the whole process of integration – as a means of keeping the Germans in check, but in reality the opposite happened. The principles of France’s European policy – the multiplication of French power and capacities at the European and global levels and categorical inter-governmentalism – have been sorely wounded. France’s elite must decide what to do with an EU in which Germany is once again powerful and where the supranational principle is coming more and more into view. Without the French, there is no Core Europe, but they too are aware that it will be called “Kerneuropa”.

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the German political elite supports closer integration, which will assist in mitigating fears of German hegemony, but the German-French tandem will no longer be regarded as a partnership of equals

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Germany (“being too big to hide, too suspicious to lead”) needs to redefine its European and global role. The two are obviously very much interlinked. It seems obvious that the low profile it has been performing in global and especially regional issues is no longer an option. During the Eurocrisis its pivotal role in the EU has become crystal clear. So has the weakness of France, who also needs to redefine its European role, which will probably mean the acceptance of the fact that not even pretending to be equal with Germany is credible. In any case Germany will need partners in the so-called European construction, since no one will tolerate any unilateralism and rightly so.

 

Germany has made efforts to keep the UK on board but it seems more and more improbable. In the new European space, the United Kingdom will probably be the biggest loser. In late 2011, British politicians accepted the multi-speed model, having excluded themselves from the first time by not signing the Stability Treaty that sets new rules for the economy. True, the British immediately began organizing a bloc of non-euro-zone members around themselves, but this will have no real significance in the future. It suffices to mention the failure of EFTA or to consider Poland’s ambition to join the euro zone. The British loss of weight in Europe will not be counterbalanced by their “special relationship” with the United States – which has anyway become rather empty, particularly under the Obama administration. Indeed, by turning their backs on Europe, they may even be risking an acceleration of Scotland’s journey to independence. The UK legally is inside the EU, but not psychologically. No matter if the vote on its EU-membership takes places or not in 2017, the question of UK’s place in Europe will not go away. Most probably the answer to this question will be a no.

 

So the UK is distancing itself from integration, thereby creating an environment to press on with establishing Core Europe inside the EU-28. For eurozone key countries surrendering more of their sovereignty will be far less painful than a euro meltdown. Chancellor Merkel seriously believes that the demise of the euro would be the downfall of the EU[1]

With the UK drifting apart and France being bogged down in its economic malaise that prevents it to focus on long-term European strategy, a new candidate has emerged to come to the rescue, namely: Poland. It is obvious that Poland is no match to the UK or France on any important counts (economy, diplomacy, military) and it is not even inside the elite club of the EU, the Eurozone, nevertheless, sensing the shifts in the political status quo inside the EU, their main thrust is to get as close to the key political decisions and to Germany as possible. This entails that, although Poland does not yet fulfil the Euro-entry criteria it pushes hard with the issue, and primarily not for economic but for political reasons. Not only because more and more issues are decided within the Eurozone leaving the non-euro countries out, but there is a good chance that a more pronounced and politically diverging two-speed system will emerge of which the natural (although not perfect) basis may be the currency union.

 

One has to be clear: it is extremely difficult to foresee future developments, especially the specific positions of the various member states if, or when, the quantum leap occurs. It is a fact, however, that barely a year ago no one could have imagined the member states taking action so soon to amend the Lisbon Treaty, the adoption of which had been associated with so much grief and pain. Yet this is what has happened. In the long term, however, tiny steps will not be enough to deal adequately with the challenges of an increasingly heterogeneous union operating in an environment of growing uncertainty.

 

The current 18-member euro zone itself is far from being a certainty in the long term, as economic weakness in Greece and a potential referendum in Ireland (if tax harmonization will be requested to reinforce economic policy co-operation among members of the currency union) will probably lead to the exit of those countries from the zone. For the latter, this will also amount to a failure of its efforts to secure independence from the UK. Other euro zone members (in the south and the east) may well find themselves in a similar situation if they are unable or unwilling to keep pace with what is required of them.

 

If economic and political developments in the long term so dictate, in theory, there is a possibility that the EU – having admitted to its inability to operate the monetary union properly and acknowledging the market and political risks – will withdraw the euro from the market intentionally, doing so with a professionalism to match that displayed at the time of the euro’s introduction ten years ago. But this is only a theoretical possibility; in practice, it is almost unimaginable. So the present generation of political leaders of Europe, the generation, which appears to have lost the globalization contest, will have no choice but to act, to escape forward towards a (multi-speed) political union. Of course, all of this is an extremely dubious project plagued by many uncertainties.

 

Economy and politics walk hand in hand in the process of European integration. This has been clearly seen during the years of the euro crisis. During the worst crisis ever experienced by the EU as from 2008, the euro was not seen as the solution, rather than the source of the problem. But in fact, the lesson from the recent malaise is that the policy system behind the common currency needs significant reinforcement.

The euro is one of the most sophisticated results of the process of modern European integration. It is also a symbol of peaceful collaboration between European countries, which has been accompanied by, or has resulted in, unprecedented levels of peace, stability and prosperity in Europe.

In order to restore confidence in the single currency zone, a high-level fiscal union must be created, which may require further measures of economic integration, such as the creation of a European finance minister, a far bigger EU budget, and an effective bank supervisory authority at euro-zone level. Not all members will be able or willing to go that far in the medium term. A two-speed Europe – as we saw it- has already come into existence in reality with the UK’s decision to stand aside.

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The European Union has tried to establish a monetary union without a political union, but it has become increasingly clear that both are needed – or neither

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Nevertheless, the dynamics of integration is uncertain. This is partly because the alliance between the 18 current members of the euro zone is not a stable formation per se; for many of them, the bar will be set too high, and they will not be able to accept the degree of harmonization needed. An additional factor is that integration is to proceed on an intergovernmental – rather than supranational – basis, and there will be a need to clarify the roles of the EU bodies, in particular that of the European Commission.

By creating the euro (which was in many – especially in economic – respects either an irresponsible enterprise or a visionary act, depending on one’s perspective), Europe crossed the Rubicon: it pushed integration to a point of no return where it either presses on with a fiscal and economic union or must bear the dire economic and social consequences of a break-up of the common currency. As Ottmar Issing puts it: Der Euro “is still an experiment whose outcome seems likely to remain uncertain for a considerable time to come.”[2]

 

Euro-related challenges are not only factors: Europe at the beginning of the 21st century is facing not only a financial crisis but also a political crisis (caused in part by the economic crisis). It is a political crisis in the sense that the political institutions established after World War II, including those of the EU, have lost the confidence of the electorate. Society and the economy are undergoing rapid change. For many, such change is an opportunity, but for even more people it is a threat. This undermines society’s confidence and leads to the chronic rejection of political institutions and a widening of the chasm between the elite and the man in the street. The welfare model that was designed to prevent a repetition of the disastrous social problems of the interwar period is now in a crisis, thereby jeopardizing the social peace that was based on keeping the middle-classes satisfied. This in turn has added to economic and social tensions caused by immigration and to a hysterical fear of globalization. In the view of many, globalization – or as the anti-globalists call it: the unbridled competition of dog-eat-dog capitalism – finds embodiment in the European Union. It is therefore not accidental that there is a growing rejection of European integration, accompanied by a general rejection of the political mainstream.

 

In the history of European integration, crises have acted as the triggers of major political and institutional changes. Europe and the EU face many external and internal challenges, the scale of which has grown in recent decades (greater international competition, a whole series of demographic, social and budgetary problems). Member states have often made feeble and belated responses to such challenges with delayed reforms and poor management of immigration and demographic trends. At the same time the European Union has not been more robust either (weak and eventually failed policy visions as the Lisbon program, diplomatic and geopolitical difficulties due to the lack of a common EU position, years of impasse after the failed European constitutional project, etc.)

 

Historically speaking, hostility, rivalries and war are the norm on the European continent; periods of peaceful co-existence are the exception. Also, in historical terms, modern European integration (voluntary cooperation between sovereign states, based on the respect for common laws, and which was launched after World War II with a strengthening of economic and commercial relations but with the primary purpose of pacifying Germany) is a vulnerable formation. As a consequence, peace and solidarity on the European continent may soon be replaced by growing hostility – if the economic situation deteriorates and becomes crisis-ridden in a geopolitical milieu that is increasingly unstable. The fate of the boldest achievement and symbol of EU integration – the common currency – is intertwined with the fate of integration as a whole: an anarchic collapse of the euro would be accompanied by the break-up of the EU and political paralysis in Europe.

 

The euro is fundamentally a political and symbolic creation; in its present form, it does not have firm economic foundations. In light of the above it is in the interest of the EU to save the euro by establishing a strong economic union. With its present architecture, rules and stakeholders (whether they are the EU-28, the EU-26[3] or the EU-18), the European Union is incapable of moving forward at the right speed and depth. In addition, European public opinion gives a cool reception to any initiative coming from above, from Brussels. The European Union – it seems – faces two possible scenarios in the long term. Under the first scenario, it passively allows the centrifugal forces (markets, member-state sabotage, public disinterest) to break it up or it ceases to exist in its present form, with the unplanned termination of the euro. All of this would be temporarily accompanied by an extremely grave crisis. Under the second scenario, in the extended lands of Charlemagne (Karolus Magnus) a new intergovernmental treaty may be adopted, resulting in strong economic policy integration and preserving the euro.

 

The second and third groups of countries could join later based on new conditions (which would be far stricter than they are today) if they wish so. The historical and European lesson is that regional integration projects are far from everlasting, and often the temporary break-up of a poorly designed form of integration is the key to a restructured formation that guarantees long-term survival. Historical experience shows that monetary unions are successful when they have among their members at least one economic power-house acting as the engine. Central institutions are also needed to control and enforce the rules.

The most successful ones are preceded by a political union, as in the case of the USA, the UK or Germany. Price and wage flexibility is a fundamental criterion, so that wages can be limited in poorly performing regions, just as inter-regional transfers can be useful. Fixing and applying criteria on economic convergence also prove to be necessary. In the Eurozone, we can hardly talk about real flexibility of labor markets, just as we cannot talk about a political union either. The EU budget is not designed for major income transfers either, as it only disposes of 1% of GDP. The Eurozone meets all of the remaining conditions. The US federal budget is around EUR 3.3 trillion, compared with the EU “federal” budget of roughly 120 billion euros, a good part of which is transferred to non-Eurozone countries. The difference between the internal transfer capabilities of the two monetary unions is obvious. In any case, the euro was created by politics. Politics must also help preserve it. As André Sapir and Jean Pisani-Ferry put it: the euro area needs fewer routine procedures and more ability to act in times of real crises[4].

The question is whether the present crisis, which threatens the existence of the most important achievement of European integration – the common currency – will lead to a “quantum leap” towards closer political integration and a multi-speed Europe. It may indeed result in any of the two.

 

In any case in the medium term, Europe must prepare itself for a decade of sluggish economic growth. The gap in economic, social and political development within the Eurozone will only widen unless there is a major change of direction in the integration process. In the long term, the European welfare state is unsustainable in its present form (cf. ageing and shrinking populations, budgetary over-extension, an increasing competitive disadvantage vis-à-vis Asia). For this reason alone, it would seem sensible to pool European resources and to aim for a common European political and geopolitical agenda. But that will be the result of economic necessity rather than rationality.

 

A lot of discussion is taking place about political union. But one thing has to be clear: not any form European political union should or could mean the formation of a regional world government or the elimination of Europe’s nation states. The nation state is a European invention, and Europe’s nations will never be dissolved into an all-embracing pan-European political unity – if for no other reason than because for Europeans a sense of European identity barely exists, and Europe does not have a common language like the United States does. Political union could mean closer political integration, a real common foreign policy, a real European (or Eurozone) president, real European parliamentary elections, a real (perhaps Eurozone) budget, and a truly common economic policy. It could also mean unified European representation (a single seat and a single voice) in international organizations as well as stronger pan-European symbolism in daily life. The euro would still not be backed by a real country, but there would be regional integration with a far stronger political profile.

Currently, the key question concerning the future of European integration is whether or not a currency without a country is viable. The European Union has tried to establish a monetary union without a political union, but it has become increasingly clear that both are needed – or neither. Some thought that this ambiguous situation would lead to a great crisis, forcing the EU to establish closer political integration. That is to say, what cannot be achieved through nice words, will happen under pressure – as has been the case so many times before. Angela Not only is the common currency without a country; it also has no backing in the form of political institutions or even the basic foundations of economic integration. The EU barely has a budget: in a modern market economy, the budget amounts to 40-50 percent of GDP, while the EU budget amounts to just one percent of European GDP. Moreover, money is not spent on things that a “normal” budget would target, but for very different purposes, such as farm subsidies – which still account for almost every second euro spent. These factors add up to a budget ill equipped to make significant transfers between Eurozone members at different levels of development and in different stages of the economic cycle. An even more important deficiency of the Eurozone is its lack of a common economic policy and the cumbersome decision-making with unanimity required, for instance, to adopt common fiscal rules.

 

A closer union in fiscal and economic policy terms – a European finance minister, Eurobonds, common financial supervision, a closely coordinated economic policy – seems inevitable, as does, in certain respects, a political union. All this will require a new treaty, an amended ECB statute, and above all political will. Closer integration may certainly be envisaged in the form of a multi-speed union.

 

Despite its undoubted successes, modern European integration is – in historical terms – a fragile construct. The main reason for this is the absence of a precise self-definition. Europe is still a nascent formation, consisting of political compromises, a common system of law, a common economic zone, and a collection of political and institutional responses to crises. Although the peoples of Europe have lived side by side for thousands of years, they do not share traditions, living myths, a common identity or language; nor do they project a single image towards the outside world. The political class and the intellectual elite are just as divided: some want more Europe, while others think that even the present level of cooperation is far greater than desirable. The underlying reason is that no one has a clear picture of the function, goal and future development of the EU; there is no agreed vision. Several political analysts and European politicians themselves are skeptical regarding the need for a declared political vision for the European integration. It seems that this view is less and less sustainable.

 

Member states and EU institutions will have to agree on how to guarantee the long-term sustainability of the common currency, and how take the European citizens on board for this especially because most of the steps need to be taken will have significant consequences on national sovereignty. This is in itself a colossal task: the result of the 2014 European elections clearly demonstrated the fatigue or even the enmity of the public vis-à-vis the European project. Nevertheless the grand design of an institutionalized two-speed Europe that makes room for the UK, and maybe Turkey and Ukraine will also have to be on the menu. During the political cycle that starts in the second half of 2014 in Brussels, the economic, political and geographical setup of the EU will be looked at and probably will be significantly rearranged.


References

          Issing, Ottmar: Europe: Common Money – Political Union? European Central Bank, 1999. Frankfurt

          Judt, Tony: Postwar – A History of Europe Since 1945. Pimlico, London, 2007.

          Khanna, Parag: The second world – empires and influence in the new global order. Random House, New York, 2008;

          Marján, Attila: Europe’s Destiny. Johns Hopkins University Press, 2010, USA;

          Marján, Attila: The Middle of the Map. John Harper Publishing, 2011, London

          McCormick, John: The European Superpower. Palgrave Macmillan, 2007.

          Mennon, Anand – Schain, Martin A. (ed.): Comparative Federalism – The European Union and the United States in Comparative Perspective. Oxford University Press, 2006.

          Moisi, Dominique: The Geopolitics of Emotion – How Cultures of Fear, Humiliation and Hope are Reshaping the World. The Bodley Head, London, 2009.

          Moravcsik, Andrew: Europe: Quietly Rising Superpower in a Bipolar World. Princeton University, 2009. www.princeton.edu/~amoravcs/papers.html

          Pisani-Ferry, Jean – Posen, Adam: The euro at 10: The Next Global Currency? Bruegel/Peterson Institute for International Economics, Brussels, 2009.

          Pisani-Ferry, Jean, et al.: Coming of Age: Report on the Euro Area, Bruegel Blueprint 4. p.4. 2008, Brussels

          Siedentop, Larry: Democracy in Europe. Columbia University Press, New York, 2001.

          Timo Baas and Herbert Brücker: EU Eastern Enlargement: The Benefits from Integration and Free Labour Movement;



http://www.spiegel.de/international/germany/if-the-euro-fails-europe-fails-merkel-says-eu-must-be-bound-closer-together-a-784953.html

Ottmar Issing: Europe: Common Money – Political Union? p. 6. European Central Bank, 1999.

Note that the UK and the Czech Republic has not signed the Stability Treaty

Pisani-Ferry, Jean, et al.: Coming of Age: Report on the Euro Area, Bruegel Blueprint 4. p.4. 2008, Brussels

Hungarian economist, PhD in international relations. Based in Brussels for fourteen years as diplomat and member of EU commissioners’ cabinets. Two times visiting fellow of Wilson Center in Washington DC. University professor and author of books on EU affairs and geopolitics. Head of department, National University of Public Administration, Budapest.

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Will the EU split into the East and the West?

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On March 1, 2018 the European Parliament has adopted a resolution initiating a disciplinary procedure against Poland. Warsaw is accused of violating a number of fundamental democratic principles of the EU. If the Polish government does not agree to make concessions, the country may for a time be deprived of the right to vote in the European Council.

The problem is that to implement such a decision, the consent of all EU member-states is needed. Meanwhile, Hungary, against which charges of the same kind have been brought, can block sanctions against Warsaw.

According to many observers the increased tensions within the EU reflect not just the “growth of nationalistic sentiments” across Europe. Analysts, as well as high-level politicians, including French President E. Macron, are already openly talking about the EU’s moving towards “Europe of two speeds”. How serious is the threat of increasing contradictions between Europe’s east and west?

The “right”, “anti-liberal” turn has been observed in Europe for the last 20-25 years and not only in the new EU members but throughout the continent. According to the BBC  in 2000 the average share of those who voted in the European countries for “populists” was 8%, at present it is about 25%. Michael Abramowitz and Nate Schenkkan of The Foreign Affairs note that now Islamophobia, “persecution of NGOs”, stiff rejection of EU policies  and fear of migration  play a key role in strengthening the positions of conservative and nationalist politicians -“populists” not only in Hungary, Poland, Austria and the Czech Republic. Similar ideas are spreading rapidly in the political discourse of almost every European country. More and more often “populists” are becoming potential partners in forming coalition governments. Thus, many political forces in Central and Eastern Europe, are increasingly rejecting the “EU pressure” because it is associated with sovereignty restrictions.

The embodiment of these trends was a series of political upheavals that occurred in Europe in 2017. First, both system-forming parties – the Socialists and the Republicans – suffered a crushing defeat in the French presidential and parliamentary elections. Then  to the unexpected surprise of most observers the “most serious political crisis since the unification” began in Germany – negotiations for the creation of the ruling coalition lasted more than 6 months, ending only in March 2018. Finally, in December 2017, a new government was formed in Austria, which included the conservative People’s Party and the far-right Freedom Party. Clearly there is no talk about Vienna’s withdrawal from the EU. Nevertheless, the new Austrian ruling coalition has its own idea of the ways of reforming the EU – a very different one from the approaches of Germany and France. Chancellor Sebastian Kurz does not conceal his desire to limit the EU’s spheres of influence. Some commentators say that by this he strongly resembles some of his colleagues in Central and Eastern Europe, also dissatisfied with attempts to centralize power, undertaken by Brussels.

The highlight of the clash between different concepts of the European Union’s future was the judicial proceedings initiated by the European Commission against Poland “for political interference in its justice system” on December 20th, 2017.

In these conditions, on the one hand, both the new cabinet of Merkel as well as the French president who is facing ever greater resistance to his ambitious reform plans have even more serious doubts regarding the ability to “initiate the process of renewal of the European Union”. On the other hand, “the events which happened in the end of 2017 in Brussels, Budapest, Warsaw, Prague and Vienna are the unambiguous alarming evidence that the EU encounters an existential dilemma in confronting the nationalist leaders of Central Europe led by Poland and Hungary“. Meanwhile, the Euro zone crisis and the Brexit remain on the agenda. As a result, the well-known Russian expert Fyodor Lukyanov says: Europe turns to itself, and “the future of the continent” has not been so vague from the middle of the 20th century. ”

Political contradictions are closely intertwined with the economic ones. The work of well-known economists Filip Novokmet, Thomas Piketty and Gabriel Zucman published in 2017 bluntly call Eastern European nations “foreign-owned countries”. On the one hand, a stable inflow of investment provides economic growth and high employment. On the other hand, such a high dependence on foreign capital in the economy is fraught with serious shocks, in case a country, for some reason, loses its investment attractiveness. As historical examples show, the “flight” of foreign investors, as a rule, provokes a surge of unemployment, a deep decline in the economy,  collapse of the banking system.

Meanwhile, after the UK leaves the European Union the annual budget of the EU will decrease by at least 10 billion euros. In this regard, the issue of decreasing subsidies to member countries, which will primarily affect the poorest countries, is being actively discussed. This “foreshadows yet another clash of the east and west of Europe.” Moreover, “some countries were told that their rejection of liberal values might be the reason to reduce their subsidies”. In response, the leading countries of Central and Eastern Europe “unequivocally say to Brussels: we are not your colonies”. In these conditions, “the Battles of Eastern and Western Europe threatens to slow down, or even completely slash to zero, a decade and a half of integration processes, and in a broader sense raises the question: is the EU united on the basis of common economic interests or common values?”

At the same time, the issue of Poland, Czech Republic or Hungary leaving the EU is not on the agenda. There are no objective reasons for this. The current CEE leaders largely owe their popularity to high rates of economic growth, the key factors of which are EU subsidies and foreign investments. Membership in the European Union is very beneficial for Eastern Europeans, as they receive more from Brussels than they give. Especially when it comes to issues of political and economic security. Formal belonging to the “West”, one of the main symbols of which is Schengen, is also very important for the overwhelming majority of citizens of these states from the psychological and philosophical point of view. The EU will also not give up Eastern European members, since the economic benefits of investing in growing economies, as well as export earnings to Central and Eastern Europe, are one of the main sources of growth for the whole Union. In addition, the experience of recent years has shown that with the problems of “Romanian corruption”, “Hungarian authoritarianism”, “Polish attacks on courts” and border disputes, like the Slovenian-Croatian one, “it is much easier to fight when the country is already included in pan-European structures,” Maxim Samorukov of the Russian Carnegie Center says.

The problem is that Brussels seems to have chosen a strategy that is very risky in the current circumstances, designed to “restore  the Union’s  self-confidence” – through a new expansion. In February 2018, the president of the European Commission, Jean-Claude Juncker, announced the strategy of joining the EU (until 2025) of at least some of the six states of the Western Balkans. According to Brussels’s plan the admission of new members should convince the rest  to abandon the privileges of individual countries and delegate more authority to the “center.” The question is about taking decisions not by consensus but by the majority, as well as about developing mechanisms for monitoring compliance with common rules by member-states and punishing violators. The ultimate goal is “supranational institutions that will gradually take away key functions from the least competent national governments“.

However, experts at the American think tank Stratfor say that “the enthusiasm for the EU enlargement has largely dried up”. Besides, the Eastern European capitals are hardly to like the real goal of the EU reform, for which the leading “old” members of the club advocate – to minimize the chances of the CEE countries to play on the contradictions between the world powers. And even if those who believe that “at the heart of all such games there is always a desire to knock out as many financial preferences as possible from the European Union are right,” the population of Central and Eastern Europe is experiencing a growing anxiety and irritation as a result of realization that, if such trends continue in the politics of Brussels, the dreams of “life as in the West,” under whose auspices people often had to give up their national interests, will never come true. Meanwhile, to succeed in global competition, there is a need to limit or even reduce the “main achievement of the European” welfare society “- its social systems. This is increasingly spoken about in the old EU members.

Only time will tell whether the trends analyzed above are long-term.

If most of the CEE countries will not get rid of the “restricted, one-sided point of view”, according to which their national interests do not go beyond their state borders, then the ideas of the “all-European home” will remain only beautiful slogans for both the society and a large part of the ruling class. The real policy will remain at the level of “tactical pragmatism”, which will focus on those slogans and ideas, which at the moment are most in demand by voters. Even if it is a question of EU-scepticism and national populism. Probably, in the center and the east of the EU, a “new Eastern bloc” will be formed – led by the countries of the Visegrad Group (Hungary, Poland, Czech Republic, Slovakia), but not limited to it. The countries of this “bloc” will promote the idea of the “Europe of Nations”: the transformation of the European Union into a confederation of independent states, united by a common free trade zone and “a few  supranational functions.”

Thus, tensions between the east and the west of the European Union threaten to become its main headache in the coming years. “Pessimists predict the emergence of situational alliances within the EU that threaten to paralyze the work of its political institutions,” the BBC said. Thus, the initiative to expel Russian diplomats in connection with the “Skripal affair” in the end of March 2018, among other EU member states, was not supported by Austria and Slovakia. On the whole we can assume that the evolution of the future European order has only just started and will continue for several decades.

First published in our partner International Affairs

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How Can Parity Be More Proportional?

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International diplomats located in Bosnia-Herzegovina have recently launched an initiative requesting the Parliament of one of Bosnia-Herzegovina’s two entities, the Federation, to reconstitute its upper chamber, the House of Peoples, in line with „more proportional representation“. Yet, how can representation in the House of Peoples be more proportional, when already based on the principle of parity? Sounds absurd, doesn’t it? Representation can be based either on the principle of proportionality or on the principle of parity. When based on the principle of parity, it cannot possibly be more proportional. Moreover, such an initiative encroaches on the sovereign right of that very Parliament to constitute and reconstitute itself, without external interference.

Indeed, what does sovereignty mean in the present-day Bosnia-Herzegovina? In the rest of Europe it has been adopted, almost axiomatically, in the traditions of both Locke and Rousseau, that sovereignty is indivisible and inalienable. For, the will of the people, as the expression of sovereignty, can not be divided; otherwise, it ceases to be the will of the people and becomes a collection of individual wills and then the people can only be a collection of individuals. Also, sovereignty can not be alienated from its bearer: power may be transferred, but not will; it is impossible for any organ to exercise the sovereign will save the sovereign body itself. The state, as a state, can no more alienate its sovereignty than a man can alienate his will and remain a man. There is but one possible bearer of sovereignty, the people.

In Bosnia-Herzegovina, it has been accepted, no less axiomatically, in the tradition of its long-negotiated partition sponsored by international envoys, that this country’s sovereignty can easily be divided, alienated from its people as a whole and transferred to its constituent ethnic elements and then consumed by its three ethnic oligarchies in the form of unrestrained political power over the pieces of territory assigned to them in the process of partition. Actually, such a divided sovereignty is treated as transferred to these oligarchies and consumed in the form of their private property over the resources found on the given pieces of territory.

Thus, whereas sovereignty is elsewhere treated as generated by a contract signed by free individuals, who thereby constitute themselves as the people and sovereignty as their general free will, in Bosnia-Herzegovina sovereignty is treated as dissolved by a contract signed, under the auspices of international envoys, by its three major ethnic groups, renamed for that purpose as ‘constituent peoples’, who thereby construct only a provisional state structure with no declared or acting bearer of sovereignty. ‘Constituent peoples’ are perceived as the contractors who should presumably be represented on the basis of the principle of parity in the parliamentary institutions, on the levels of both state and its two ‘entities’ (Federation of BiH and Republika Srpska), and it is only their three wills that are taken into account, although even they are not treated as sovereign, either, but only as dependent on each other’s acquiescence.

Moreover, yet another part of the country’s divided sovereignty has been transferred to the so-called High Representative (a diplomat appointed by major international powers), whose will may reign supreme over particular wills of the oligarchies claiming to represent their respective ‘constituent peoples’. In this sense, as a part of the country’s Constitution, the High Representative comes closest to the notion of the sovereign, although in practice this person rarely exercises his will and imposes his decisions on the three oligarchies in question. Still, the position in the Constitution makes the High Representative irremovable from the country’s legal structure, in spite of the permanent efforts of the three ethnic oligarchies to eliminate this potential threat to their unrestrained power.

Yet, is such a multiple division and transfer of sovereignty truly a part of the Bosnian Constitution, or it is rather an arbitrary interpretation of the country’s constitutional structure by both foreign diplomats and local politicians? In the preamble of the country’s Constitution one can really find its sovereignty divided among several different categories, positioned as sovereignty’s bearers:

Bosniacs, Croats, and Serbs, as constituent peoples (along with Others), and citizens of Bosnia and Herzegovina hereby determine that the Constitution of Bosnia and Herzegovina is as follows.(The Dayton Peace Agreement, Annex 4, The Constitution of Bosnia-Herzegovina)

A similar formula can be found in the Washington Agreement (1994), which preceded the Dayton Peace Agreement (1995) and served as the basis for creation of the Federation of BiH, as one of Bosnia’s two entities:

Bosniacs and Croats, as constituent peoples (along with Others) and citizens of the Republic of Bosnia and Herzegovina, in the exercise of their sovereign rights, transform the internal structure of the territories with a majority of Bosniac and Croat population in the Republic of Bosnia and Herzegovina into a Federation, which is composed of federal units with equal rights and responsibilities.

Here sovereignty is divided between Bosniacs, Croats and others – whatever their ethnic identity or a lack of identity – and they are all treated as possessing a double identity,first as constituent peoples and then as citizens of the Republic of Bosnia and Herzegovina. For, the form ‘constituent peoples (along with others)’ presupposes that ‘others’ – whatever their ethnic identity or a lack of identity – are also to be treated as ‘constituent peoples’, along with Bosniacs and Croats. By analogy, Bosniacs, Croats, and Serbs, along with Others, are to be treated as both ‘constituent peoples’ and ‘citizens of Bosnia and Herzegovina’ in the Dayton Peace Agreement’s Annex 4.But who can actually be proclaimed the bearer of sovereignty on the basis of these two constitutional acts?

Following the modern theories of sovereignty mentioned above, if sovereignty is to be regarded as indivisible and if, accordingly, there can be only one bearer, then the bearer must be the citizens of Bosnia-Herzegovina, acting as a whole. Then the ‘constituent peoples’ (Bosniacs, Croats, and Serbs, along with Others) are to be understood simply as the constituent elements of the whole, which cannot be treated as multiple bearers of sovereignty. And then the citizens may be represented in a unicameral parliament, founded on the principle of proportionality.

On the other hand, if we take sovereignty as divisible, the ‘constituent peoples’ maywell be regarded as its multiple bearers. Then, however, these ‘constituent peoples’ are not to be reduced only to Bosniacs, Croats and Serbs: the preambles used in both of these constitutional documents suggest that the category of Others is to be regarded as equal to the categories of Bosniacs, Croats and Serbs.

Constitution makers, obviously, had no clear answer to the question of sovereignty’s (in)divisibility in the case of Bosnia-Herzegovina: instead of a formulation that would follow the principle of sovereignty’s indivisibility (for example, „Bosniacs, Croats, and Serbs (along with Others) as citizens of Bosnia-Herzegovina“), they introduced the ‘constituent peoples’ as parallel to the citizens of Bosnia-Herzegovina and thus proposed a form of shared sovereignty between the citizens and the ‘constituent peoples’. This shared sovereignty is reflected in the structure of the parliamentary institutions of Bosnia-Herzegovina and both of its entities: all the parliaments are bicameral, the lower chambers representing the citizens on the basis of election results in accordance with the principle of proportionality, and the upper chambers representing the ‘constituent peoples’ on the basis of the principle of parity.

Yet, even such relative consistency has ceased to exist in the practical implementation of these two principles. In the the upper chamber of the Parliamentary Assembly of Bosnia-Herzegovina, the House of Peoples, the principle of parity is applied only to representatives of Bosniacs, Croats and Serbs (each represented with 5 seats), while Others are totally absent, as if they do not exist in the Constitution’s preamble among ‘constituent peoples’, along with Bosniacs, Croats and Serbs. In the upper chamber of the Parliament of the Federation of BiH, the House of Peoples, the principle of parity is again applied only to representatives of Bosniacs, Croats and Serbs (each represented with 17 seats), while the number of representatives of Others is arbitrarily reduced to only 7 seats, as if Others are not to be found among ‘constituent peoples’ in the Constitution’s preamble, along with Bosniacs, Croats and Serbs, and as if the principle of parity can be applied selectively or in some reduced manner. Similarly, in the upper chamber of the Parliament of Republika Srpska, the Council of Peoples, parity is applied again only to Serbs, Bosniacs and Croats (each represented with 8 seats), while Others are represented with only 4 seats, as if they have not been put into the category of ‘constituent peoples’, along with Serbs, Bosniacs and Croats. In other words, even if we theoretically accept the possibility that sovereignty may be divided between the ‘constituent peoples’ and the citizens of Bosnia-Herzegovina, such shared sovereignty is in its constitutional implementation distorted to such an extent that only Bosniacs, Croats and Serbs are recognized as ‘constituent’, whereas Others are sometimes treated as partially constituent, with a reduced number of seats, and sometimes as non-constituent, that is, practically non-existent!

Obviously, when the principle of parity is applied in such a selective manner, it ceases to function as parity. Otherwise, Others would be represented in all these parliamentary institutions on the basis of parity, along with Bosniacs, Croats and Serbs. And then, it only means that Others have been permanently discriminated in the political reality of Bosnia-Herzegovina and that such a constitutional discrimination must be removed if the model of shared sovereignty is to be applied at all. If not, then full sovereignty must be given back to the citizens of Bosnia-Herzegovina, regardless of whether they link their identity to any of its ethnic groups or not. And that has to be reflected in the structure of all its parliamentary institutions: the Houses of Peoples should be abolished and the parliaments should then become unicameral, so that only the citizens would be represented in the Houses of Representatives, based on the principle of proportionality and the principle one person/one vote. Of course, for that purpose the country should get a new constitution, adopted by its own Constitutional Assembly, instead of the one tailored in such an inconsistent (and theoretically problematic) manner by foreign diplomats as a part of the international peace treaty.

However, the international diplomats calling for „more proportional representation“  obviously do not distinguish between, and directly mix up, the principle of proportionality and the principle of parity. They assume that the House of Peoples in the Parliament of the Federation of BiH is based on the principle of proportionality, and ask for more proportionality, although it is clear that parity is its sole founding principle. For, political representation can either be proportional, reflecting the proportion of actual votes for actual political parties and candidates, or it can be based on parity, reflecting the parity between the constituent elements of the entire constituency (presumably, of the country’s population as a whole). As already noted above, it is the principle of parity in the House of Peoples that has been violated by under-representation of Others: while Croats, Bosniacs and Serbs are all represented with 17 seats in this House, Others are represented with only 7 seats. Yet, the diplomats do not pay any attention to this violation of the constitutional principle of parity. Instead, they suggest the Parliament to adopt even „more proportional representation“ in its upper chamber (which, in practice, can only be over-representation of one of the groups already represented in line with the principle of parity), so as to even further undermine its founding principle of parity, already violated by the existing under-representation of Others!

Such a legal absurdity is certainly unsustainable and can only lead to the total dissolution of the existing constitutional order in Bosnia-Herzegovina, already distorted by the abandonment of the principle of indivisibility of sovereignty and further undermined by the selective implementation of the principle of parity in the parliaments’ upper chambers. This brings us to a crucial point: either the parliamentary structures in Bosnia-Herzegovina will follow the logic of this request, abolish the existing provisional constitutional order and leave the country without any constitutional order whatsoever, or they will abolish this constitutional order and establish a non-provisional one, based on the principle of sovereignty’s indivisibility, reflected in a unicameral parliament, representing only the citizens of Bosnia-Herzegovina as a whole, regardless of their ethnic identity or a lack of it.

It is up to the parliamentarians. They may follow the principle of sovereignty as applied in the rest of the European countries, or obey the diplomats’ request, whatever the price for the country’s constitutional order. As for the diplomats, whoever they are, one should finally ask whether they would ever apply in their own countries any of the models they advocate for Bosnia.

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Do Angela Merkel and Germany have a joint future?

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Many foreign media and even some German media people reported during the endless appearing process for finding a coalition 2017/2018 about a “governmental crisis”. This mostly due to the lack of knowledge these coalition talks being a defined process despite taking unusually long. Germany sure wasn’t able to take major decisions hurting especially Emmanuel Macron and his affair of the heart: the renovation of Europe. On the topics Europe and Foreign Policy, Germany steps on the brakes for many years now, therefore the result remains the same – little or nothing happens anyway.

The new German government is in operation since a few weeks now but there is trouble brewing afoot in Berlin. Unexpectedly, the right wing AfD is pretty quiet at the time.

The CSU remains the arsonist

Those who have hoped the CSU (the Bavarian sister party to the CDU of Angela Merkel) will concentrate on governing the country after the forming of the government are utterly wrong. With the elections ahead in Bavaria, Horst Seehofer wanted to gather his voters and attract those who have left CSU for the AfD with the powerful comment “The Islam does not belong to Germany”. He even doubled within this context by adding “People of Muslim Belief belong to our country”. Just like one could take his belief and values off before going out on the streets. It certainly appears Horst Seehofer is able to abandon his belief and Christian values scarifying them to preserve his own power.

If you look into the history of Europe and Germany – and therefore Bavaria – you soon will discover Horst Seehofer wants to make the pure opposite of history to become reality. Whether by ignorance or on purpose is hard to determine, however based on facts the Bavarian Blusterer simply is wrong – “fake news” might the right term. During the early Middle Age Arabs and the academic people from their countries brought an enormous amount of knowledge to the backwardly European countries. People actually have to thank the Muslims for the following flourishing or Europe. They benefitted from countless innovative products and a vast knowledge transfer from the Occident into the countless by monarchs oppressed, socially underdeveloped and by a faint educational system inhibited countries of Europe. A startling detail: the majority of the academics originate from Chorasan – an expanded Afghanistan – and Iran, namely from the former intellectual stronghold Bagdad.

Angela Merkel took a clear position, criticised and rectified Horst Seehofers statement – who received it thin-skinned but did no longer make such unqualified statements.

Settlements within CDU still not finished

Angela Merkel has many areas with the need for improvement within her own party, too. While the Chancellor tries to convey she has understood the vote and is working on improvements her Health Minister Jens Spahn is backstabbing her. It took him just three appearances – perceived by the people concerned as big-headed and ice-cold calculated arrogance – to destroy Angela Merkels recently planted crop of hope. “Hartz IV does not mean poverty” was his first statement causing backlashes from many sources but also support by those who do not like governmental interventions (Hartz IV is the German unemployed support and welfare system introduced by the SPD in earlier times and a constant annoyance since it does not cover the rapidly increasing cost of life). With his second appearance Jens Spahn talked against the liberalisation of the abortion law unveiling his lack of knowledge and tact. Just a few days later he wanted to comply with his promise to create 8000 new jobs in health care and wanted to speed up the homologation of education certificates of nurses and doctors from other European countries. Again, the Health Minister unveiled he is unprepared since today it already is impossible to convince more than 1000 nurses from EU countries per year to come to Germany – also due to the questionable working conditions and much too low salaries in Germany.The situation is critical since many German nurses and doctors leave for better jobs in other countries like Switzerland. Based on these facts counting on foreign nurses and doctors seems to be questionable on two levels: these people leave a vacancy in their home countries and the problem in Germany becomes the burden of the foreign workers – the question is how long this can be done. Even more problematic is the continuous decrease of the quality in nursing which gradually becomes life-threatening, particularly with cheap foreign workers. Voices rise Jens Spahn is pulling wool on people’s eyes.

Even CDU exponents oppose the young politician and reveal there’s much to learn for Jens Spahn. At least, with his thoughtless, unemotional and erroneous appearances Jens Spahn is keeping all these issues prominently on top of the agenda of the Grand Coalition.However, the local CDU parties and the local party members have not yet understood the troubles of the German society, thus their ignorance could become a bigger problem than expected. The CNT Alliance visited some Kreisveranstaltungen (party gatherings) of the CDU in first semester of 2018 and discovered the mostly elderly party members are interested only in issues securing their own wealth. Other issueswere just briefly touched by the politicians on stage.

All this is a bit more than a tendency towards right. Like the strategy paper presented the group “WerteUnion” (Union of Values) beginning of April with lots of criticism for Angela Merkel. With this paper the opponents request a re-positioning of the CDU from the middle towards the right and fiercely oppose Angela Merkels refugee policy. Within this conservative manifesto they request the “return to the core values” of the CDU. The main part of the manifesto focusses on the Islam and migration. Again, it seems much easy for the authors of this manifesto to leave their Christian values behind (refugees) and putting them back in the centre of attention (Family) by demand. It doesn’t come as a surprise Jens Spahn sending a greeting to the approximately 100 people of this manifesto.

Interest to enthuse new members and to focus on younger people or migrants does not exist – in the contrary: our questions regarding rejuvenating the CDU or to include new members originating from foreign countries were quietly, but definitely opposed even with some discomfort. It seems Angela Merkel does not recognize the “Small AfD” among their own people – or she tolerates them on purpose.

Little fuss from the SPD

The partner in the coalition, the SPD, did not stir issues up after they’ve started governing. During the coalition negotiations the SPD has secured the Ministries of Finance, Justice and the Foreign Ministry besides others, much to the displeasure of those people in CDU and CSU who were keen on these jobs as well. With these ministries the SPD owns quite some power and the ability to steer the government: an excellent success for the negotiators of SPD.

At the other hand the SPD remains in a fuzzy situation not just within its own quest for identity. Several representatives of SPD do not find common ground regarding the welfare programme Hartz IV. Some people around vice president Ralf Steger for instance want to replace Hartz IV knowing the programme was introduced by the SPD but also is the reason for the downfall of the party. At the other hand, the Finance Minister Olaf Scholz wants to keep Hartz IV – since it is some kind of his own child from the time he worked for Chancellor Schröder, the facilitator of Hartz IV. The designated president of the party Andrea Nahles rarely shy of some “Kick-Ass”comments is very quit despite the discussion about Hartz IV and the job market being the opportunity for SPD to position itself clearly. She commented Jens Spahn’s intentional slip geared towards media with surprisingly soft voice, but straight into the face. Horst Seehofe and Jens Spahn are after the personal representation but missing out on their duties, and adds: “The primary job of the Chancellor is to sort out the act of government”.

Angela Merkel is flagging

Over the past years Angela Merkel became the symbol for political stability and predictability. She is popular in Germany and abroad but scratches in the paint become visible. Her political style is increasingly perceived as boring and leaden even by her own people. Usually, watched from distance she acts successfully and well balanced even for extensive problems. Angela Merkel is the chancellor of compromises and subtle but also of half-hearted decisions and stalling in front of complex problems. This works fine at the moment since economy runs excellent and tax revenues are on a steady high – both causing additional problems which she isn’t regulating. This stability increasingly is perceived as stagnancy which it actually is e.g. if looked at the Digital Offensive launched by the government many years too late.

Along with a certain fatigue in society towards Angela Merkel – a phenomenon previous chancellor Kohl encountered too – and her style the many postponed “building lots” become visible. Media often simplify the situation and explain the fatigue towards Angela Merkel merely with her misjudgment in the situation with the refugees and her catastrophic and negligent management of this issue. This, however, is just a small part of the real reasons for the poor results of the elections and the steep head wind Angela Merkel is facing. It is the combination of various diverse issues such as the state of emergency in nursing, poverty among the elderly, housing shortage, low wages and this in combination with contemptuousness and ignoring several population groups, particularly those at the far right of the political spectrum. The situation with the refugees therefore is just one part of the picture – but one people easily can discharge their hate and anger. Also because of the right wing party AfD right wing ideas and right wing protesting became “En Vogue” – even the voters of CDU/CSU are going towards the right. In this climate the uprising hostility against the Jews in the German society and the anti-Semitic activities of the past month are not unexpected. The internal policy of Angela Merkel was meant to be visionary and creative but it looks more like uncertain, delayed, reactive, and unveils many large problem.

Rumble at the right

The “old” parties still underestimate the right wing AfD. The equally underestimate the potential of right wing populism and the count of German citizen having conservative/right wing thoughts – even within CDU and CSU. For example, much disregarded by politics the right wing union “Zentrum Automobil” gained six mandates during the last works committee elections in March 2018 at the Daimler (Mercedes) plant in Untertürkheim (Stuttgart) – with the result of 13.2% they achieved a similar result like the AfD during the election last year, the Bundestagswahlen. The “Forschungsgruppe Wahlen“ stated approximately 15% of the members of the politically social unions did voted for AfD instead for SPD during the last Bundestagswahlen. A result pretty much replicated during the works committee elections at Daimler.

The statements by some of the exponents of the works committee of the IG Metall union: right wing ideas today are little visible but are spread subliminal throughout the whole company and, therefore, it’s expected to see a further rise of the “Zentrum Automobil”. The confronted union IG Metall got us evasive responses only.It seems this issue is hushed up. Time will tell whether Angela Merkel tactics to sit such problem out are the successful tactics for the unions. Looking at the general tendency in the country towards the right we believe Angela Merkel and the unions both are playing with fire.

Some more foreign policy?

During the past Germany was known for a little consolidated, imprecise and often lacking foreign policy. Domestic policy always was more important and it still is. The country focuses on economic foreign policy driven by the industry and its lobbyists, and otherwise relies on symbolic policy geared towards the media.

This image could slightly change. One of the first official acts by Heiko Maas, the new foreign minister, was his visit to Israel. His predecessor Sigmar Gabriel several times acted awkwardly and Angela Merkel didn’t want to become involved but Heiko Maas clearly, pragmatically and quietly put down some counterpoints.On top of it he clearly took position against the lighting up anti-Semitism.

Despite his appearances sometimes being perceived as nicely stage-made he did not make his own life easier since expectations are high now. The quick and friendly meet up with the French foreign minister Jean-Yves Le Drian in Israel stirs up some hope Germany – after months of naval-gazing – finally will take over responsibility in Europe and the World. Moving from inactivity towards political creation with the friendly support by France.

The future of Angela Merkel

Foreign policy slowly picks up speed but Angela Merkel seems to have a hard time with her country. It no longer seems to be the Germany she knows. She seems to lose more ground contact the more she tries to understand the problems of society therefore losing more and more ground contact while facing fronts she has to fight. In the Bundestag CDU/CSU and SPD have to heavily deal with an number of parties, all of them having gained more than 5% of the votes. On top there is the AfD, the strongest party in the opposition owning an uncomfortable agenda – some of it even being attractive to her own party members.

With their vote for the Grand Coalition the SPD members have saved it and also saved the faces of SPD as well as the CDU/CSU. The SPD finds herself in a disruption and renovation process, even more so than the CDU. On top of it the parties of the opposition got stronger and this comes together with the incapability or the active reluctance of the governing parties to tackle the urging problems in the country in all consequence.

A forecast about the future of Angela Merkel and, therefore, of the German bipartisan system seems to be tricky. Though, the recent Grand Coalition steers towards the end of the factual bipartisan system in Germany. And people in Germany will be even more discontent for the next elections in 2021.The question how CDU/CSU and SPD will score is eligible. And whether the right wing AfD will establish itself as the third constant in the party landscape. The other question is whether the other parties will see the signs. Some media are singing the swan song for Angela Merkel forgetting she is not for nothing the most powerful woman in this world. It will be interesting to see how she will cope with the erosion on several fronts. It is not the end of Angela Merkel but she and her party are showing heavy signs of wear.

*Ajmal Sohail contributed to this article

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