German Government Crisis

Government parties CSU and CDU give press conference – in different places!

Merkel in Berlin and Seehofer in Munich received the press at 2 pm. Merkel didn’t answer the question that everybody wants to know: Would she fire Seehofer if he implements his full aslym masterplan? That would mean the end of the current government.

None of the government parties (CDU, CSU and SPD) desires new elections, because all 3 lost tremendously in the last months and had not the majority in the parliament in the case of new elections. (Forsa)

The whole theater could also be a trick to convince the SPD to agree to a stricter immigration policy. The SPD is extremly immigrant-friendly and would never accept tougher politics. But to avoid that the whole government flies apart, she might be willing.

Even chancellor Merkel now supports tougher immigration politics (62 of 63 of Seehofers masterplan points). But she still insists on a european solution and rejects a solo action of Germany. Her goal is “to reduce, control and arrange (note from me: arrange not stop!) illegal immigration” (19:18 in Live Stream Die Welt).

This isn’t enough for the home secretary Seehofer (Press conference youtube). In 2 weeks, when Angela Merkel will be back from the EU summit they will talk with each other and Merkel will have to report her EU achievements.  If they don’t match the masterplan of Seehofer, he will act and send the police to the border. In the press conference this sounds pretty clear. Seehofer also sais that his masterplan – he didn’t publish it yet – contains a lot of explosive material. This is the point where Merkel strictly disagrees and she will use her power as chancellor to correct him. (she said this indirectly when she insists that she still has the power to do so).

Back to Weimar Republic?

The fronts between the two are hardened. What would be the best scenario? The best thing would be if Merkel rethinks her immigration policy. Another option is that Seehofer rows back from his position as he did many times before.

A political earthquake however would be this:

  • Merkel can not convince our european partners of a common immigration solution (very likely to happen since she didn’t achieve it during the last 3 years)
  • Seehofer sends german police to the border and implements his full masterplan
  • Merkel uses her power to instruct him not to do so
  • Seehofer does it anyway
  • Merkel fires her minister
  • government parties CDU and CSU split their union
  • Merkel steps down
  • new elections in Germany
  • result: 7 parties in the parliament (CSU, CDU, SPD, AfD, Grüne, FDP, Linke), none of them has a majority or can easily form one
  • lack of political stability, similar to the weimar republic (10 parties)

 

 

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Historical crisis in german government

(Süddeutsche Zeitung)

Great events throw their shadows ahead

Usually the CSU follows her bigger sister CDU but now she rebels openly against the current chancellor Angela Merkel (CDU). The CSU has been part of the government for many years but she never did anything about the welcome culture of Angela Merkel.

Parteien BT

The great threat for the CSU is the election in Bavaria in october this year. According to actual polls the CSU will lose up to 7% of her votes to the AfD (Information in English). Since hundrets of thousands of immigrants have been coming to Germany the AfD wants to control the border. Most of the Germans want that, too. To get the votes back, the CSU stands up against Angela Merkel.

Angela Merkel follows her idea of unconditionally open borders and is not willing to follow german and european laws. Our home secretary, Horst Seehofer, CSU, made it clear, that he will use his power as a minister and control the border even against Merkel’s will. The consequence would most likely be that Merkel will fire her minister then. But look, she needs the CSU to stay chancellor. If she fires her minister, the CSU might not be willing to form a union with the CDU any more.

The coalition between the government parties is already weak but now this situation could lead to a coalition break and to a break of the government. To make things worse, other leaders of Merkel’s party support Seehofer and the CSU. Angela Merkel’s throne is shaking. As her position weakens many call for her resignation.

 

 

 

 

Crazy Friday

Yesterday’s news would normally spread over months. But when the coffee machine failes it is very likely that out of sympathy the washing machine strikes also.rock-chick-1600436

Deutsche Bank seriously injured

Our biggest bank suffers her lowest share prices ever. On friday they fell below 10 Euros for the first time in history.

Deutsche Bank changed only recently her chief executive officer (CEO).  The new man is Christian Sewing who already started to fire 10.000 employees according to german newspapers (in german: Die Zeit and Stuttgarter Zeitung).

These are bad news for Germany and could also affect other countries worldwide. Deutsche Bank has the honour of beeing the most dangerous bank in the world in terms of harm that she can do to international banks in the case of another financial crisis (german: Die Zeit).

Remember that the European dept crisis is anything but over. The European Central Bank only buyes bad government loans in order to keep our member countries liquid. Like the Baron Münchhausen we try to pull ourselves out of the swamp by our own hair. Of cause many countries do that. But that doesn’t make it better.

Spain fires Prime Minister

That should not affect us very much but is worth to be mentioned. The firered prime minister Rajoy was not very smart when a part of Spain, Catalonia, voted for their independence last year. He called the saparatists criminals and put some of their leaders in jail.

On friday he lost a no-confidence vote in Madrid and had to step down because of a big corruption scandal. The party of the new prime minister Pedro Sánchez has no majority in the parliament. To become prime minister he needed the votes of the separatists.  How will he handle the Catalonian question in the future? Can he prevent that Spain falls apart? He seems to have no real political goals except the power. (in german: Handelsblatt)

Premiere in Italy – 2 eurocritical parties take the lead

The country that sits on a third of europs lazy loans has a revolutionary new government since Friday. According to their program they want to increase the country’s spendings instead of reducing them. This is easy to understand since the economy is weak and a quater of the young people under 34 is unemployed. There have to be investments to make the economy grow.

In Brussels are strong concerns about this new kind of policy. Who will pay for the investment program? Will there be a new European dept crisis? What if Italy doesn’t follow Merkel’s “suggestions”? (sources in german: SPON and Euronews)

Tradewar Day 1 – 25% steel tariffs in place

Yes, that too happened on friday. US president Trump carried out his threat of imposing high steel and aluminium tariffs on his closest allies. Canada and the EU already announced that they will not accept this move and will impose their own tariffs on US products. (BBC)

Mistrust and tensions between the nations seem to rise. Simply watch this video of the canadian prime minister Trudeau and you can feel the confusion:

Tensions rise for sure. See what the german newspaper “Die Welt” reports:

30.000 more soldiers under Nato and German control

They will have hundreds of warplanes and warships to fight back “a possible russian attack”. The previous number of 20.000 soldiers will be more than doubled. A new NATO headquater will be built in Ulm, Germany. (in german: Die Welt and Süddeutsche Zeitung) I don’t like the thought. Do you know, that Germany arms the police with 17-tons-tanks? They are currently discussing the use of machine guns. (in german: Morgenpost) Where will this development lead us to?