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Brexit’s geopolitical and financial ramifications

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Following the referendum on UK membership of the European Union (EU), upholding Brexit, world politics is expected to herald a period of immense instability and turmoil. There is likelihood of economic crisis in Europe and UK, even globally.

Unexpected or unintended?

Britain’s exit from EU is now almost final, pending only some formalities and the EU is pushing for early conclusion of the Brexit deal. It is quite clear that British Prime Minister David Cameron had not expected the referendum to lose, thereby forcing him to quit, having found no other credible alternative. The result is primarily the outcome of a political miscalculation by Cameron and allies that caused geopolitical and financial issues. The British capitalist lords are staggering about as they try to pick up the pieces while the situation spirals out of control.

Geopolitical relations in Europe have been destabilized as a direct consequence of the Brexit. Without Britain anchored in Europe, relations between France and a far more powerful Germany will deteriorate. Equally, relations between the EU and the United States—for which Britain provided a bridge—will be thrown into flux.

Martin Schulz, president of the European Parliament, insist there must be no delay in Britain invoking Article 50 of the Lisbon Treaty to formally initiate exit proceedings, so as to limit financial damage and impose a harsh settlement on Britain that will serve as an example to others. Far-right forces in Europe are now demanding referenda in their own countries, including the National Front in France and similar parties in Slovakia, Poland, Italy, the Netherlands, Denmark and elsewhere.

Amid dire warnings of economic catastrophe and the boost the referendum gave to right-wing, anti-immigrant nationalists, millions fear for the future. A petition is circulating that has gained some three million votes for another referendum to be held.

There is widespread shock and anger at the Brexit outcome in the UK, even among some who voted for leaving the EU. The result indicates anger on the art of the Britons in the very project of EU- an integration of basically different entities with varying degree of geopolitics and economic variations.

Meanwhile, the UK itself is in danger of breaking apart. Conservative Party and Labour Party could split, amid speculation of a snap general election. The Scottish National Party is pressing for a second independence referendum and also seeking early talks with Brussels and EU member states. In Northern Ireland, where the referendum vote was polarized along Republican and Unionist lines, the most severe crisis since the formal end of the civil war in 1998 is looming.

Crisis

The historic Brexit that democratically became a reality create Brutish soverign nation once again after decades of being a part of EU, is feared to kickstart another “Great Financial Crisis” of 2008, and threatens to blow up even further, if more European countries exit for EU. The Bank for International Settlements (BIS), has warned of deep-rooted problems in the global economy.

The economic cost of the successful referendum by Britain to cede from EU is aid to be very high globally. The ongoing market sell-off wiped $2.5 trillion from the values of world equities markets on June 24 itself is the most visible manifestation of a much deeper crisis of the global economy. both the International Monetary Fund has warned in effect that the USA and world economy face conditions of stagnation characterized by a long-term reduction in growth rates.

The BIS report said the world economy was threatened by a ‘risky trinity’: debt levels that are too high, productivity growth that is too low, and room for policy manoeuvre that is too narrow.” It cast doubt on the ability to continue to combat crises with monetary policy. However, the BIS had no solution to the ongoing crisis besides further austerity measures. It called for slashing government debt while improving the “quality of public spending… notably by shifting the balance away from… transfers.”

Virtually every global central bank issued a statement saying it would either begin or was ready to implement a further expansion of liquidity measures in response to the share selloff. Markets are increasingly betting that the Federal Reserve will halt, or even reverse, its announced plans to begin raising interest rates. These conditions have weakened productive investment, fueled a global expansion of debt, making it near impossible for central banks to respond in an effective manner to the eruption of new crises.

In the latest such measure, the Japanese government of Prime Minister Shinzo Abe and the Bank of Japan announced the provision of additional funds to the financial system.

The growth of negative interest rates, promoted by central banks seeking to reassure the markets, is a risk with “a long fuse, with the damage less immediately apparent and growing gradually over time. Such rates tend to depress risk premiums and stretch asset valuations, making them more vulnerable to a reversal by encouraging financial risk-taking. All the actions taken by global central banks since the 2008 crisis have only exacerbated the cancerous growth of financial parasitism. At the end of May, close to $8 trillion in sovereign debt, including at long maturities, was trading at negative yields—a new record.” Due to the continuous infusions of cash into world markets, monetary policymakers have found it harder to push inflation back in line with objectives, leading to economic slump.

The types of fiscal austerity measures and labor market restructuring called for by the BIS have been brought forward in every major economy in response to the 2008 crisis. These range from the USA, where state education spending has been slashed by 25 percent, to Greece, Spain, Portugal and, most recently, France, with the implementation of the El Komri labor reforms by the Hollande government, where sweeping social cuts have been combined with attacks on protections for jobs and conditions.

Austerity policies have transferred ever more wealth to the financial elite, who have proceeded to use their cash hoards for speculation and financial parasitism, fueling a vicious cycle of economic stagnation, rising inequality and financial crisis, in turn inflaming international antagonisms and the growth of protectionism.

The global economy cannot afford to rely any longer on the debt-fueled growth model that has brought it to the current juncture, the “persistent and otherwise puzzling” global slowdown in productivity growth. It tellingly attributed the slowdown to the effect of a massive series of booms and busts that have characterized the global economy in recent years as it has become increasingly dominated by financialization and speculative mania, fueled by virtually unlimited cash from global central banks.

Observation

A full scale disintegration of the EU is now a real possibility – yes, only a possibility and not necessarily the reality, mainly because Germany would not let EU disintegrate.

EU Integration was an attempt by the ruling classes of the continent, with the support of the United States, to prevent a new eruption of national conflicts that had twice plunged the world into all-out war. However, “unity” within the framework of capitalism could never mean anything other than the domination of the most powerful nations and corporations over the continent and its peoples.

The fracturing of the EU along national lines that is now taking place is once again driving inexorably towards world war. But the EU cannot be put back together again. The Brexit result has made manifest a broader crisis that is insoluble within capitalism because it is rooted in the fundamental contradiction between the integrated character of the global economy and the division of the world into antagonistic nation states based on private ownership of the means of production.

Europe must be united. However, this cannot be done on a progressive basis through efforts to preserve the moribund institutions of the EU or other bureaucratic mechanisms. The progressive and democratic unification of Europe can be achieved only from below, through a revolutionary struggle for socialism across the continent led by the working class.

The likely economic fallout from the Brexit vote on the rest of the world over could be huge. In addition to the direct trade effect, business investment around the globe is likely to be dampened somewhat due to the heightened uncertainty about the global implications of Brexit and the tightening of financial conditions. Companies now delay investment projects to assess how Brexit could affect them.

One impact on the government is the effect on the value of its holdings in banks. The value of the government’s holding in RBS and Lloyds Banking Group dropped by about £8bn, although it has recovered somewhat since.

The pound has dropped considerably against the US dollar; less so against the euro. That has not had a great deal of impact on the economy so far, although it is likely to stoke inflation in due course. National income is reported in pounds so will not be hit automatically by a weaker pound, although it will suffer in comparison with other countries – the status as the world’s fifth biggest economy may be threatened.

There may already have been an impact on the economy or the public finances but there are no data as yet showing that. Throughout the campaign pro Brexit leaders argued that UK would save money from not contributing to the EU Budget.

However, the impact on global growth and inflation is likely to be relatively small – and almost certainly not large enough to push the global economy into recession. UK import demand would be minimal as the UK accounts for only 3.6% of global imports of merchandize goods.

This could lower potential growth even further and would likely lead to higher wage and inflation pressures.

Chancellor of the Exchequer George Osborne says that companies have already started cutting back on investments following the vote to leave the European Union.

The Brexit shock is likely to intensify the pressure on current and future mainstream governments to address inequality and limit migration.

Of course, Europe, USA and the rest of nations would undertake urgent measures to minimize the impact of Brexit and according to reports the European Union has already begun action in the respect. Investors will have to factor in a higher chance of a stagflationary outcome over the next three to five years: even lower growth or near-stagnation coupled with a significant rise in inflation. This could lower potential growth even further and would likely lead to higher wage and inflation pressures.

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Should there be an age limit to be President?

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The presidential elections in Bulgaria are nearing in November 2021 and I would like to run for President of Bulgaria, but the issue is the age limit.

To run for President in Bulgaria a candidate needs to be at least 40 years old and I am 37. I am not the first to raise the question: should there be an age limit to run for President, and generally for office, and isn’t an age limit actually age discrimination?

Under the international human rights law standard, putting an age limit is allowed in the context of political participation under the right to vote and the right to run to be elected. Human Rights Committee General Comment No.25 interpreting the International Covenant on Civil and Political Rights states that an age limit has to be based on objective and reasonable criteria, adding that it is reasonable to have a higher age requirement for certain offices. As it stands, the law says that having an age limit for president is not age discrimination, but is 40 actually a reasonable cut-off? National legislations can change. We need to lower the age limit and rethink what’s a reasonable age for President, and not do away with all age limits.

We have seen strong leaders emerge as heads of state and government who are below 40 years of age. Sanna Marin, Prime Minister of Finland, became Prime Minister at 34. Sebastrian Kurz, the Prime Minister of Austria, was elected at 31. Jacinda Ardern, Prime Minister of New Zealand, assumed her position at 37. So perhaps it is time to rethink age limits for the highest offices.

The US has plenty of examples where elected Senators and Congressmen actually beat the age limit and made it despite the convention. The age limit for Senator in the US is 30 years old. Rush Holt was elected to the US Senate at 29. In South Carolina, two State Senators were elected at 24 years old and they were seated anyways. The age limit for US president is 35 years old.

In Argentina, the age cut-off is 30. In India, it is 35. In Pakistan, it is 45 years old. In Turkey, it is 40 years old. Iceland says 35 years old. In France, it is 18.

Generally, democracies set lower age limits. More conservative countries set the age limit higher in line with stereotypes rather than any real world evidence that a 45 year-old or 55 year-old person would be more effective and better suited to the job. Liberal countries tend to set lower age limits.

40 years old to be a President of Bulgaria seems to be an arbitrary line drawn. And while it is legal to have some age limits, 40 years old seems to be last century. Changing the age limit for president of Bulgaria could be a task for the next Bulgarian Parliament for which Bulgarians will also vote on the same date as they vote for President.

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Without roots, no future. Germans and Russians – Decoupling ideologies

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Source: Wikipedia

Krieg ist das Ergebnis einer falschen Politik und sein Erbe Not und Elend.1 (From Gestrüpp meines Lebens, a diary kept by my grandfather, Helmuth Banik)

…next – Prussia, family roots and identity of heart

Cultural diversity or universal uniformity? Peaceful co-existence of nation-states or institutional global governance with international organizations and their sphere of influence gaining more and more ground, even in everyone’s private life? Which future will be ours?

Roots, earth and homeland—while unearthing the deepest parts of my family history and, at the same time, German history, my uninhibited view of my Prussian roots continues to pave my way towards a new future. Our world today is on the verge of a new beginning. It is up to us to decide which way humanity will go in the future. An individual’s identity is complex and has many layers that need to be uncovered. So, too, is our world: complexly composed of many layers that need to be uncovered for its roots to be revealed—as there is no future without roots.

Thus, it is necessary to decouple from all ideas and ideologies that have long determined political activity around the world. Let us start with Russia and Germany, since their destinies are forever linked; historically, culturally and geopolitically.

“I have sympathy toward the German people; my ancestors came to Russia from Westphalia under Peter the Great. Great nations can stay dormant for some time, but they always wake up!” Quote from a Russian friend

Sapere aude! In the spirit of Immanuel Kant, the great philosopher of Königsberg, let us reinvent and imagine the world in which we want to live!

Without Russia, not a better world in sight

The world, but especially the European Union (EU), is at a crossroads. The old structures and beliefs of the current governance seem to be collapsing before our very eyes. How simple was yesterday’s world. The enemy, namely Russia, was in the East. A bipolar world vision, divided between “the good” and “the bad.”

In the West, the EU with its main ally, the United States, represents the good world, an ideal world—in short, the world of the G7. Countries with a democratic system under the rule of law in which freedom is one of the fundamental values: All other countries in the world are measured and judged according to this ideal, especially if they want to enter this “club of the free world.”

And now? What has become of this G7 world? The measures taken to fight the pandemic were lockdown and other more or less draconian actions that deprived a large part of the world’s population of their fundamental rights, whatever the political regime or national culture. This is the cruel reality of a uniform crisis management policy that is visibly shared by democracies and authoritarian regimes. The main characteristics of this policy are the intransigence of clinging to the rule of the political-economic elites and, with that, the absolute will to remain in power and control communications and, as such, the population. The boundaries separating democracies and authoritarian regimes are disappearing, and a uniform technocratic world without identity is emerging. Propaganda—in this case, the massive communication of fear and hatred—is getting a second wind, this time not on a national level but on a global institutional scale. Moreover, it seems to be accompanied by a new Cold War strategy: According to an EU strategy paper, China is classified as a “systemic rival” (ecfr.eu 2020) and, together with Russia, is considered a new challenge to NATO by the Biden administration (Le Figaro 2021).

And the Russian president? Vladimir Putin always keeps the door for cooperation wide open, as he makes clear in “Offen sein, trotz Vergangenheit,”2 the recent article published in Die Zeit in which he states: “Ich möchte noch einmal betonen: Russland plädiert für die Wiederherstellung einer umfassenden Partnerschaft zu Europa.”3

Moreover, the opportunities offered by the Belt and Road Initiative (BRI) do not seem to be taken into consideration. On the contrary, the G7 initiative to “Build Back a Better World” (B3W) is an alternative to the BRI. Conflict instead of cooperation. Yet, we should keep in mind: It is not possible to have a better world without integrating Russia.

The technotronic era involves the gradual appearance of a more controlled society. Such a society would be dominated by an elite, unrestrained by traditional values. Soon it will be possible to assert almost continuous surveillance over every citizen and maintain up-to-date complete files containing even the most personal information about the citizen. These files will be subject to instantaneous retrieval by the authorities.” (Zbigniew Brzezinski in Between Two Ages: America’s role in the technotronic era)

Humanity’s ultimate battle

There is an urgent need to continue questioning the sustainability of a power, political system and governance that are global—values and mercantilism, democracy and dictatorship, free market economy and planned market economy, diverse identities and universal uniformity, nation states and institutional global governance.

What future awaits us?

Either:

a political system of “universal digital governance,” of total and totalitarian surveillance with a capitalist state economy, that is, a system in which humanity serves the system by constantly adapting to its different benchmarks, a technocratic world order according to Brzezinski,

or:

new political structures that are very much at the service of humankind and that ensure a free and autonomous life for everyone in the spirit of Immanuel Kant’s sapere aude, that is, global governance that ensures a peaceful return to the primacy of humanity, relations and nations, deeply rooted in its own history, a return to cultural diversities and identities, to creation and, thus, a return to the roots.

The geographer and geopolitician Jacques Ancel set the vision of French geopolitics. According to Ancel, man is the creator of global governance, of identities and, subsequently, also the borders of civilizations, where “human groups … reach a harmonious balance and … end up recognizing borders deriving from a common memory, history, culture and language.” It is “a nation of the heart in itself, not rational” (Ancel 1938, Banik 2021).

Neither Germany, nor China, nor the U.S., nor Russia is an isolated paradise. No country can claim to know the absolute truth. Violence, increased global competition (for natural resources, food, water, etc.) and international terrorism are forcing us to face up to the current realities, to abandon any ideology driving ideas such as the European project, socialism with Chinese or even Russian characteristics, or the ideology prevalent in the United States, which styles itself leader of the free world (Banik, 2016, 2019).

Ultimately, it is up to us to decide which path humanity will take.

“Kultur hat nie Grenzen gekannt. Kultur war immer unser gemeinsames Gut und hat die Völker verbunden.”4 Vladimir Putin, 25.9.2001

The big European house

According to Jacques Ancel, “human groups … reach a harmonious balance and … end up recognizing borders deriving from a common memory, history, culture and language.” It is thus important to encourage community spirit and to create human bonds—instead of strategic alliances—of geographical proximity and to overcome ideologies. The only way is to integrate Russia by creating a great pan-European house and, at the same time, taking advantage of the BRI as a link that encompasses the Eurasian region.

Russia and Germany have a common memory and their destiny is forever linked. It is up to Germany to finally assume its responsibility and play the key role in creating this space of peace and security. Integrating Russia is crucial if we are to create new political visions which serve humankind and which ensure a free and autonomous life for everyone.

Geographically, Russia is the largest country in Europe. Geographically, Europe is much larger than the territory of the EU. The EU, and subsequently Germany, must at all costs avoid being caught up in the tension that seems to be developing between China, Russia and the U.S. In case of a military conflict, the major nations will win while the EU will be the main loser. The current danger is the image of the resurgent enemy resulting from the aggressive policy of the Biden administration and the EU towards China and towards Russia. Two almost “military” fronts have thus been created. In fact, the Cold War has never ended but merely changed its guise.

Rise in military spending

According to the Sipri press release of April 26, 2021: “The five biggest spenders in 2020, which together accounted for 62 per cent of global military expenditure, were the United States, China, India, Russia and the United Kingdom. Military spending by China grew for the 26th consecutive year.” China has focused on its navy. It is the second largest military spender after the United States. In 2020, “China’s military expenditure is estimated at $252 billion in 2020, representing an increase of 1.9 per cent since 2019 and 76 per cent since 2011.” (Sipri 2021). “Russia’s military expenditure increased by 2.5 per cent in 2020 to reach $61.7 billion. This was the second consecutive year of growth. Nevertheless, Russia’s actual military spending in 2020 was 6.6 per cent lower than its initial military budget, a larger shortfall than in previous years” (Sipri press release, 26.4. 2021).

From the perspective of the two fronts—“The Chinese Enemy” and “The Russian Enemy”—one must also consider U.S. military spending in 2020, “[which] reached an estimated $778 billion, representing an increase of 4.4 per cent over 2019. As the world’s largest military spender, the USA accounted for 39 per cent of total military expenditure in 2020” (Sipri press release, 26.4. 2021).

In view of the world’s ever-increasing military outlays, it is urgent that we revitalize and reform the instruments already in place, such as the NATO-Russia Council, the Organization for Security and Cooperation in Europe (OSCE), the EU-Russia dialogue and the various regional formats such as the Arctic Council. It is worth noting the bilateral agreements of strategic importance between China and Russia in the field of nuclear energy and within the framework of the Polar Silk Road, as well as the importance of the Eurasian Economic Union, in which Serbia, for one, has a free trade agreement.

Towards a uniform, faceless, controlled world?

China’s withdrawal or Chinese deglobalization

China’s 14th Five-Year Plan is the continuation of the country’s efforts to reform and modernize, but the “dual circulation” model also marks an important step towards China’s deglobalization. This “dual circulation” strategy welcomes foreign investment, but only in those products and services that are not (yet) available in China. Therefore, China aims to reduce its economic dependence on foreign countries and focus on building its own capacity. Nevertheless, it also wants to boost bilateral agreements, and is pursuing the BRI. The Regional Comprehensive Economic Partnership (RCEP) follows the same logic, pursuing reinforcement on the geographical and geopolitical level in Eurasia. With the implementation of the RCEP, the largest free trade area in the world is being established. On the other hand,

China’s FDI in Europe continued to fall, to a 10-year low: Shrinking M&A activity meant the EU-27 and the United Kingdom saw a 45 percent decline in completed Chinese foreign direct investment (FDI) last year,…” (Merics 2021).

“Keep the Soviet Union out, the Americans in, and the Germans down”

The United States is pursuing a strategy, particularly in the area of foreign policy, that was initiated by Donald Trump, meaning “America first” when it comes to economic, military and geopolitical issues. American foreign policy is, above all, marked by the withdrawal of American troops from Afghanistan. Note that, contrary to what Trump decided in 2020, Biden has reversed the partial withdrawal of U.S. troops from Germany (Politico 2021). Lord Ismay’s narrative seeking to keep the Soviet Union out, the Americans in, and the Germans down” is still relevant today.

The EU: a theater of conflict between China and the United States

Europeans have an increasingly critical view of China. China is seen as a systemic rival for the EU. The pandemic has exposed problems, including strategic dependence on imports from China. Therefore, the EU wants to remain credible at the international level and is seeking closer cooperation with the West, especially the United States, rather than an adjustment of its economic relations with China independent of the Americans.

Germany uprooted and war trauma

Germany seems to be stuck in a kind of “time loop.” Even though the Berlin Wall has long disappeared, there is still no uninhibited view of an open perspective towards the East, towards Germany’s historical East, especially towards Russia and the chances for cooperation that the country offers. German public opinion is still manipulated. As a result, it remains frozen in distrust of Russia. Further, the experienced war trauma—destruction, displacement and loss of homeland—has disconnected a whole generation from its own history, leading to a partial loss of its own identity. This disconnection has been unconscious, inherited by the descendants.

Towards total surveillance?

Basically, the conflict between the different ideologies and the omnipresence of the “pandemic” in the mainstream media strongly distract our attention from the real battle that has been going on in the background for a very long time.

The battle for world domination is not the conflict between different nation-states, e.g. the U.S., China or Russia, or between different political systems, democracy or dictatorship, but it is the struggle for supremacy by the lobbyists and by international institutions and organizations such as the World Economic Forum (WEF), the EU institutions, the World Trade Organization (WTO) and by the various interest groups and industrial associations that seem to be striving for a uniform, controlled world made of public-private partnerships, without nation-states, without cultural diversity, without a past, without a history, without roots and without identity.

“Smart government” and total surveillance

The advance of artificial intelligence and the 4th Industrial Revolution are visibly shifting geopolitics to geoeconomics. The need for control of international markets prevails over military conflicts. Large technological communication companies, such as social media giants (Facebook, Twitter, etc.), search engines like Google and Baidu, platforms like Amazon and Alibaba, cooperate more and more closely with their respective governments, thus creating public-private partnerships (PPPs). Back when geopolitics prevailed, the state’s sovereignty was ensured by the military control of the country and its borders. Now we see an increasing interdependence and cooperation between different governments, technology companies and large enterprises—“global players,” such as Big Data and Big Pharma. We are clearly heading towards a political system based on the “state economy,” as is already the case in China. In China, the state-owned enterprises, the “national champions,” are playing a predominant role not only in China but also on the international markets. In order to better face the Chinese competition, the EU has also launched a new industrial strategy to support and finance the creation of industrial alliances, a kind of “European industrial champions” (touteleurope.eu 2021)—even if the approach is not uniformly supported within the EU.

With an increasing number of PPPs, the establishment of state capitalism blurs the boundaries between business and government. In China, Russia and the United States, this issue is played out at the national level, while on the European continent it is advanced by the EU institutions. What is insidious is that, thanks to the cooperation between politics and technology companies, the media propaganda effectively supports and feeds this structural change. Thus, fundamental rights and identities are slowly being extinguished in favor of the uniformity of the corporate market.

Roots, identities, nations

Russians, Poles and Germans not only have a common history but shared cultural footprints. This history is a strength and not a weakness. According to Ancel’s vision, these three countries are at the crossroads of arbitrary borders and of borders of civilization. There are, on the one hand, the so-called arbitrary borders, which are more fraught, more strategic borders that have resulted from military pretensions. The borders of civilization, on the other hand, are more permanent as these are based on a common memory, common history and common language arising from a group of humans in equilibrium. The borders of civilization are “nevertheless more complicated because they are the object of numerous political and commercial interpretations”—even if the commercial justifications aim at “clearing a path” and not “enclosing” as the military justifications do (Ancel 1938, Banik 2021). For Russia, Poland and Germany, reconciling the past means “making a path in harmony,” our path back to our shared roots.

According to Ancel, the frontier is “a political isobar that fixes, for a certain time, the equilibrium between two pressures: the equilibrium of mass and the equilibrium of forces” (Ancel 1938). The real problem is not the question of borders. Borders will always exist, even in a globalized world. “There are no problems of borders. There are only problems of Nation” (Ancel 1938). Jacques Ancel argues for mankind as creator. “One does not revise borders, except by force; one modifies minds” (Ancel 1938; Lomnica 1938 foreword).

Quoting Vladimir Putin:

“Und wir können es uns einfach nicht leisten, die Last früherer Missverständnisse, Kränkungen, Konflikte und Fehler mit uns herumzuschleppen. Eine Last, die uns an der Lösung aktueller Probleme hindert.”5 Die Zeit, 2021

Regaining a sense of self

We, the Germans, unfortunately refused to take the hand that Putin extended to us in his speech to the Bundestag on September 25, 2001. The window of opportunity is wide open again. The German people need to reconnect to their entire cultural past. It is up to every German to discover his or her own roots, reconnect to his or her family past, healing the wounds and thus helping Germany to integrate its entire history and become whole again.

Similar to my path back to my Prussian roots, let us take an uninhibited view of our roots and seize this chance in order to create new prospects for German-Russian cooperation.

As Putin said in 2001:

“Ich bin überzeugt: Wir schlagen heute eine neue Seite in der Geschichte unserer bilateralen Beziehungen auf und wir leisten damit unseren gemeinsamen Beitrag zum Aufbau des europäischen Hauses.”6

There will be no better world, especially for Europe, without Russia’s integration into the pan-European house – and no better world if Germany is still cut off from its roots.

…Back to the roots

Katja Banik

www.katjabanik.com

Specialist in geopolitical issues, doctorate from Sorbonne Nouvelle University;

speaker and guest lecturer on geopolitical, economic and political issues, focusing on Jacques Ancel’s geopolitical vision of “the identity of the heart.”

Author of articles published on moderndiplomacy.eu, russiancouncil.ru (RIAC) and worldscientific.com, and author of the book Les relations Chine-Europe à croisées des chemins, published by L’Harmattan, Paris. Katja is the descendant of ancestors who lived in East and West Prussia. Her family on her mother’s side had to flee from Königsberg in East Prussia in January 1945 and, on her father’s side, from Schneidemühl in West Prussia. She increasingly connects the topics of identities, roots and borders in her geopolitical views.

Visible roots: Kurort Oybin, Germany 2021 and 1955:

Great-granddaughter and great-grandfather Friedrich Herbst


[1] “War is the result of the wrong policy and its legacy is distress and misery.”

[2] “Being open, despite the past.”

[3] “I would like to emphasize once again: Russia advocates for the restoration of a comprehensive partnership with Europe.”

[4] “Culture has never known borders. Culture has always been our common good and has united peoples.”

[5] “And we simply cannot afford to carry around the burden of past misunderstandings, offenses, conflicts and mistakes. A burden that prevents us from solving current problems.”

[6] “I am convinced that today we are turning a new page in the history of our bilateral relations and that we are making our joint contribution to the construction of the European house.”

Author’s Note: The paper was previously published by the Russian International Affairs Council (RIAC)

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The End of a Belle Époque: Stability and Risks in Germany’s Elections

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On September 26, 2021, Angela Merkel’s 16-year tenure as Federal Chancellor of Germany will end. Protracted periods of stability, even positive stability, as a rule lead to a decrease in domestic political activity: players get used to an adaptive strategy, lose their ability to manoeuvre tenaciously, and at a turning point cannot decide to change. Germany is no exception: the upcoming elections are a fork between the continuation of traditional politics (stability) or an attempt at renewal (risk), primarily for the ruling Christian Democratic Union (CDU).

Although Merkel announced her intention to leave the post of CDU head, having ruled out her re-election as chancellor, back in 2018, the process of choosing a successor, and therefore determining the future course, was not without difficulties. At first, the stake was placed on Annegret Kramp-Karrenbauer—then the general secretary of the party, a technocrat even outwardly similar to the chancellor, but she did not gain popularity and after the scandal in the Thuringia state elections in February 2020, she resigned. After a year of hesitation, the place was taken by Armin Laschet—Prime Minister of one of the largest and most developed regions, North Rhine—Westphalia, an experienced politician and traditionalist.

In the struggle, they bypassed not only a stubborn revisionist, the former head of the CDU/CSU faction in the Bundestag Friedrich Merz, and the ambitious Minister of Health Jens Spahn, but also the leader of Bavaria, Markus Soeder, who has earned great popularity in the fight against COVID-19. At the state level, his Christian Social Union (CSU) operates independently, but at the federal level—it acts in alliance with the CDU. If the bloc won the elections, he could apply for the post of chancellor, but the CDU/CSU board voted against this after behind-the-scenes consultations. This confirms the party’s explainable choice in favour of stability: excessive risks during the transition of power can lose political capital, and continuity will help preserve the main voters.

However, the current ratings and political tradition will not allow the CDU to single-handedly form a government in the event of victory, and in the coalition negotiations, the stake on stability may already play against the party. Since 2013, the “grand coalition” of the CDU/CSU and the Social Democratic Party of Germany (SPD) has been in power. In the absence of traditional competition, the “crisis of the centre” proved fatal for the Social Democrats, who ceased to be associated with the working class and the centre-left agenda and lost their voters.

It is difficult to count on a third “grand coalition”, even for reasons of continuity in such conditions: support for the CDU/CSU fluctuates at the level of 23–25%, and for the SPD—18-20% of the vote.

The Social Democrats have relied on Olaf Scholz, the most experienced finance minister and vice-chancellor of the Federal Republic of Germany. He surpasses Laschet in popularity, but his ability to further increase the rating is limited. The #laschetlacht scandal related to the incorrect behaviour of the candidate during the floods in Germany in July 2021 may cost the CDU some support.

What can the CDU/CSU count on in this situation at the coalition negotiations? How can a majority be achieved? The big party crisis did not mobilise small parties in the way the CDU would have liked. The radical Alternative for Germany (AfD) and the intractable Greens have gained in popularity: if a coalition with the first is excluded for ideological reasons, then an alliance with the latter contradicts the preservation of stability. Chancellor-candidate Anna-Lena Baerbock and the party’s electoral programme make it clear that they are in favour of changing the course of German policy (for example, for stopping Nord Stream-2). Today the party is supported by about 20% of voters (and in the spring this figure reached 28%)—this is twice as much as 4 years ago, and reflects public demand for innovations. Accordingly, the black-green coalition initially has a potential for conflict.

It turns out that the CDU needs a coalition of three parties. The centrist Free Democratic Party (FDP) claims 10–11% of the vote and could either balance the Greens, or boost the coalition with the CDU/CSU and the SPD to the required majority. The first option was already considered 4 years ago and the negotiations did not lead to success, despite the political weight of Merkel, which Laschet does not have. FDP leader Christian Lindner is not the easiest negotiator and does not have confidence in the Greens. Will he go for another deal?

The coalition of CDU/CSU, SPD and FDP could have a symbolic meaning in the context of transit—the main colours of the parties add up to the German flag. It responds to the CDU’s stake on continuity (at the expense of the SPD), but tolerates moderate innovation (from the FDP). Germans today have no clear coalition preferences, which indicates that the population has no idea of their capabilities. In this situation, the voter may well support the course towards stability.

In other words, we can talk about the firm intention of the ruling party to maintain the leadership and course of the outgoing chancellor. However, it is controversial whether this stake will work in the long term: coalition negotiations will be difficult, and there are few backup options. Laschet will have to manoeuvre between persistence and concessions, and analysts will have a very interesting autumn.

From our partner RIAC

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