Connect with us

Europe

Germany and Italy within the European Union

Giancarlo Elia Valori

Published

on

No one is really fine in the European gas chamber but – just to paraphrase Orwell – someone is finer than the others. It is Germany, as you can easily imagine.

Earlier this year, the German industrial production recorded no annual growth and consumer confidence was at very low levels.

However, as is now well-known, since the beginning of the Euro phase Germany has destroyed our manufacturing industry and is replacing us in the major global markets: China, Russia (except for the crazy sanctions due to the situation with Ukraine – an operation much more linked to the US and NATO actions than to the Russian ones).

Hence the crisis of German production was short and regarded the relative compression of the Chinese market, as well as the much more severe negative cycle of the US production.

However, when markets are stolen from the others, everything gets easier and quicker.

The story began with the Social Democrat Chancellor, Gerhard Schroeder, shortly before the phase of the EU single currency started, when – also thanks to the “reabsorption” of the German Democratic Republic (GDR) still underway – he managed the forced lowering of the German mark value and the companies’ production costs, already below the expected Euro waterline, so as to make the “great German factory” already competitive even before the introduction of the single currency.

Moreover the Euro certainly enabled Italy, which was not at all prepared for the single currency, to reconstruct its own debt record, which was approaching the end with an imminent “Argentina-style” perspective.

But the single currency, inevitably too “high,” destroyed the purchasing power of wages and salaries, by halving them, and doubled both production costs and consumer prices.

Italy experienced an 80% deflation, which lasted six month, of which you can easily imagine the social effects.

Social effects experienced not even after the Second World War lost – and that says it all!

Hence Italy was forced to increase exports, which made us gain some positions on the world market, but destroyed – due to an usurious and virtually absent ruling class – the great State-owned industry, sold at a loss, however with one-off “transfers and payments” to the old and new political forces.

Furthermore, the shift to a stupidly “high” currency value further destroyed Italy’s banking system, which is now playing a secondary role compared to the large liquidity areas being created both within the EU and in the rest of the world.

In fact, Italy experienced recession for at least five of the past eight years.

Still today, Italy’s GDP is lower than in 1999 and its sovereign debt has grown by 133% since 1999. Furthermore, since the introduction of the Euro the national average productivity has steadily declined.

But what does it has to do with Germany? Certainly it has to do with Germany.

In fact, the European Union is unable to manage the huge German current account surplus – and indeed it remains silent before it. Said surplus is over 8% – a percentage that no EU Treaty allows and which also funds the current remarkable growth of wages and salaries in Germany (4.5% on average), besides refinancing the local domestic demand, which is the real engine of growth in the current phase in which exports are flagging.

Since the beginning of the 2006 crisis, caused by the US “financial bubble” on the European monetary and banking markets, Germany has slowly but relentlessly forced the other EU countries to be more fiscally “correct”.

This means to increase their domestic taxes in order to support the expected lower purchase of government bonds and to “cash” money to add to their coffers in case of few renewals of bonds at maturity.

Nevertheless, even freshmen in Business and economic universities know that if taxation increases, domestic consumption will decrease and that if the internal market shrinks, there must be an equivalent share of exports offsetting that loss.

However, if the Euro external value changes for each individual country of the Area, Italy’s EU competitors recording a stronger and more stable external value of the Euro will take markets away from Italy also at equivalent prices.

This has meant basically destroying the Italian, Spanish and sometimes even French companies to favour both Germany and the German industrial expansion area beyond the old Iron Curtain.

Since the very beginning, the German labour outside German borders has supported the country’s expansion onto global markets at highly competitive prices, while Italy and the other regions which had not been cynically prepared for the Euro geoeconomics have collapsed under the weight of the unsustainable costs of their exports and international competition.

While former Italian President Ciampi was visiting China’s Great Wall, Chancellor Schroeder quickly landed in Beijing and in one single day signed all the contracts concerning the remarkable expansion of the Volkswagen Group into China.

It is worth recalling that this was exactly the same paradigm used by the Federal Republic of Germany (FRG) against the German Democratic Republic (GDR), reduced to an Anschlűss country, both to avoid the competition of Communist Germany’s companies, which were not performing so poorly, and to use – at a much lower cost – the labour force “released” from those areas.

Hence the model with which the Federal Republic of Germany (FRG) bought the German Democratic Republic (GDR) – with our money, and sometimes even with the GDR money – was replicated for the rest of Europe.

Incidentally, at that time the “moralistic” rules on rigour, which found many inexperienced advocates (but we would also say agents of influence) applied not even to Germany which, in the phase of “rigour”, made three-year investment plans accounting for 5.2% of GDP.

Also at geopolitical level, the strategic relationship between Germany and the United States makes economic sense: the pressure of sanctions against Russia, guilty of taking back what is its own in Crimea and part of Ukraine, undermines the economies more interrelated with Russia, including Italy’s – hence a crisis adds to the other.

The US interest is very clear: the more the European economic fabric and common interest crumble, the more the Dollar area – and, in any case, the US commercial and financial expansion area – is guaranteed and expanded.

The more the United States come back to Europe, the more the German bilateral power on the USA increases and the bilateral power of the other EU countries proportionally decreases. After the notorious “Arab springs”, the latter are now reduced to an internal struggle (such as Italy vs. France for Libya) or to a “joint action” – often fully ineffective – with the United States which, however, think they must walk out of the Middle East, after having madly set fire to it.

In a recently-published book, a CIA executive has candidly admitted that the United States “hoped that the democratic uprising would destroy Al Qaeda” – and we have seen with what tragic and uncontrollable outcomes.

Not to mention the case of the war in Syria and its impact on the EU welfare, which will shortly become totally unsustainable and will place the less cautious and far-sighted EU countries in a tragic situation while, on the contrary, it will create opportunities for profitable investment for the North European and US banks and private insurance companies.

After the EU restrictive rules on the EU Member States’ public budgets, with the 2011 regulations known as “Two Pack Regulations”, France has set itself – at least partially – against the financial (and later political) Germanization of the European Union, while Italy has continued to use the debt lever and the lucky chance provided by the ECB Governor, Mario Draghi, with the programme designed to repurchase – on the secondary market – the surplus of government bonds of countries like Italy.

But it will not last.

There are only two possibilities: either the sequence of “sacrifices” and budgetary constraints is applied – and forget about the story that States spend too much and badly, because all States do so – and hence Italy will no longer have a domestic market to support its industrial output, because it also has a low labour productivity, or it shall incur debt on financial markets and ultimately collapse under the burden of the interest generated by that debt.

Obviously, they will help us die.

Later, they will buy our companies at low cost so as to incorporate them in their European and global networks, with the national workforce that will be a variable – and not a constant – factor of business calculations and profits which will go abroad.

In 2013, Italy already ranked second in the list of Mergers and Acquisition (M&A) of German companies – and it just so happened during the crisis – and currently over 30% of the Italian companies which are now no longer nationally-owned have already been sold to the Germans.

Only in 2013, for example, we recorded as many as 23 deals of German small and medium-sized companies (SMEs) which acquired Italian companies, out of a total of 171 sales of national SMEs between 2013 and 2014.

Given the complexity of these operations, it is obviously not possible to speculate on the activities which are still in progress.

Hence the issue lies in undermining a country and then buy it at very low prices.

A strategy which has long been developed and that Italy, for the fatal inability of its ruling class, did not prepare on time, i.e. before the Euro’s entry into force.

What can be done? Getting out of the single currency is useless.

However, Italy must operate freely on the major global markets where the country can still compete with its European “allies” – and it shall do so quickly and with harsh and resolute methods.

And it must accept foreign to foreign transactions not denominated in Euro, as with China and the Russian Federation.

This is what good intelligence and a ruling class not consisting only of mere parvenus and upstarts, like the current ones, would be for.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs "La Centrale Finanziaria Generale Spa", he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group and member of the Ayan-Holding Board. In 1992 he was appointed Officier de la Légion d'Honneur de la République Francaise, with this motivation: "A man who can see across borders to understand the world” and in 2002 he received the title of "Honorable" of the Académie des Sciences de l'Institut de France

Continue Reading
Comments

Europe

How Can Parity Be More Proportional?

Published

on

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.

Continue Reading

Europe

Do Angela Merkel and Germany have a joint future?

Published

on

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

Continue Reading

Europe

Big mistake of EU against Washington

Mohammad Ghaderi

Published

on

The EU is still confused! The U.S. government’s actions in the field of foreign affairs and economics have not been accompanied by strong and strong reaction from the European Union.

This has led the U.S. President Donald Trump to continue his efforts to isolate Europe in the international system more quickly. Since the beginning of the Tramp presence in the White House, the movements of nationalist and extremist groups and opposition to the European Union have intensified. That same issue has put the EU in jeopardy. It is widely believed that the President of the United States supports the collapse of the European Union and the euro- zone. However, it seems that some European officials still do not understand the deterioration of the situation in this region!

The fact is that if the European Union does not take a decisive decision against the United States and its policies in the international system, it will have to see its fall in the international system and the return to the twentieth century in the near future.

During the World Economic Summit in Davos, the Chancellor of Germany and the President of France both gave a significant warning about the return of nationalism and populism to Europe. This warning has been sent in a time when Far-Right movements in Europe have been able to gain unbelievable power and even seek to conquer a majority of parliaments and form governments.

In her speech, Angela Merkel emphasized that the twentieth century’s mistake shouldn’t be repeated. By this, the German Chancellor meant the tendency of European countries to nationalism. Although the German Chancellor warning was serious and necessary, the warning seems to be a little late. Perhaps it would have been better if the warning was forwarded after the European Parliamentary elections in 2014, and subsequently, more practical and deterrent measures were designed.However, Merkel and other European leaders ignored the representation of over a hundred right-wing extremist in the European Parliament in 2014 and merely saw it as a kind of social excitement.

This social excitement has now become a “political demand” in the West. The dissatisfaction of European citizens with their governments has caused them to explicitly demand the return to the twentieth century and the time before the formation of the United Europe.

But it seems that one of the issues that European leaders have not understood is the role of the United States in the process of destroying the European Union. This role is so high that few have the power to deny it: from the U.S. economic war with Europe to the direct support of the White House from nationalist groups in Europe. However, some European politicians still try to look at optimism about U.S. behaviors. Without doubt, this optimism will in the future lead to the destruction of the European Union.

Speaking at the Davos summit (2017), “Emanuel Macron” the French President warned of the victory of nationalists and extremists in Europe and said:

“In my country, if I do not make sense of this globalisation then in five, 10, 15 years time it will be the nationalists, the extremes which win — and this will be true of every country.”

The commonality of Merkel’s and Macron’s remarks is their concern about the return of European citizens to nationalism. As noted, this process has intensified in Europe. The extremist party of Freedom found way to the Austrian coalition government, and the increase in radical far-right votes in countries like France, Sweden and Germany, is a serious crisis in Europe. The recent warnings by the German Chancellor and the French President should therefore be seriously analyzed and evaluated.

But the main question is whether the French President and German Chancellor are aware of their great mistakes in the United States and the Trump government? Do they still ignore the White House’s role in strengthening extremist groups in the European Union? What is certain is that it is possible for Merkel and Macron to realize their deep mistakes over the Trump government that there is no longer a way to save the European Union.

First published in our partner Tehran Times

Continue Reading

Latest

Newsletter

Trending

Copyright © 2018 Modern Diplomacy