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Do the German elections matter?

20. September 2013, von Almut Möller, Comments (0)

As journalists from across Europe flock to Germany to report on the federal elections this coming Sunday, the question that is asked by many is “Does their outcome matter for Europe?” There is no simple answer to this. Indeed the visions of the major parties on the future of the eurozone and the union as such to this day remain rather unclear – the candidates just don’t talk about them. I speculated in a blog piece in April that it was really only a question of time until the euro hits the campaign – well, generously put, this was wishful thinking. But really, I simply got it wrong.

For different tactical reasons, both the current coalition government of Chancellor Merkel and the major opposition parties, the Greens, the Social Democratic Party and the Left, remained mostly silent on the euro. And with an overall mood of complacency in the country there was no real need to respond to public demand apart from the odd prediction about a new chapter in the Greek drama. So in one of the most formative moments in the history of the European Union, with Germany playing a major role in shaping the future EMU, Germans are pretty much clueless about what to expect on the euro after September 22.

Well, no need for Germans to be wary , so it seems. Colleagues such as Ulrike Guérot and Julian Rappold have recently dissected the positions of the parties on the future of Europe and plotted out what to expect from different election outcomes. Both concluded that the upcoming elections are likely not to change overall German policy or make Germany speeding up with Eurozone reform even if a different coalition made it into power.

I overall agree with these predictions, which of course raise a lot of questions about the prospects for the currency union in the coming months. But I want to focus on a wider point here that has been raised elsewhere, but so far has been largely overlooked by German political elites. This is a subject to be tackled by the next government: The question that is asked increasingly outside of Germany is “Is Berlin still with us?”

Two narratives started to spread that challenge what used to be a certainty about Germany. These two narratives are unfolding in slightly different communities – the EU crowd on the one hand, and the security community on the other. If these narratives continue to be around, and indeed merge, they might put the next German in a rather uncomfortable spot with long-standing partners.

1. The first is the “Germany plays its national card and is willing to go-it-alone” narrative. It is well known in the meantime and encompasses the observation that Germany in the course of the euro crisis developed a good sense of its national interest and used its clout to impose its preferences for the Eurozone architecture on other members. A less prominent facet to this narrative in the continental European debate, but quite present in Britain and the US, is the prediction that the eurozone with its struggling southerners has made Germany look for alternatives elsewhere, notably the emerging economies. “The Germans are bigger than the eurozone”, to put it in a nutshell.
2. The second is the “free-rider” narrative of Germany surfing happily the waves of economic globalisation, with an exports model that fits into the demand of the day, while consuming global security that others provide for. The abstention in the UN Security Council on Libya still resonates, as does Mali – Berlin celebrating 50 years of Franco-German reconciliation while letting Paris do the dirty job in Africa. And then, Syria – aren’t the Germans out once again? “If only the world was a happier place, but it isn’t, and the Germans are cherry-picking the nice bits”, such is the storyline.

From a Berlin perspective I have to say that none of these narratives are entirely convincing to me, but I can see why this current coalition triggered these perceptions elsewhere. Clearly, even without agreeing one has to acknowledge they exist. And such views are likely to spread further unless a new German government made its positions on its European and international choices clear again, and acted accordingly. I don’t see a great deal of awareness over these issues here in Berlin. But I do believe that there are serious questions out there about Germany being a reliable partner, and these questions need a response from the next federal government in Berlin.

I’ll get back to where I see the next government placing itself with regard to these two narratives once the dust settles next week.

Europe For Citizens

“This project has been funded with support from the European Commission. This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.”

Frau Merkel and the ‘C-Word’

5. June 2013, von Almut Möller, Comments (0)

Both the European Commission and the International Monetary Fund (IMF) have just published findings about the performance of the German economy and the state of structural reforms. While there is plenty of discussions in Berlin about what ‘the others’ (in particular France) are not getting right, there is not much of a debate on what ‘the others’ (Commission and IMF) suggest that Germany is or is not getting right. The new findings did not get much attention in the public debate.

Not surprisingly perhaps, as both reports continue what sounds like good news and point out that Germany’s public finances have been overall sound. The IMF underlines that Germany’s “safe haven status and strong balance sheets” has been an “anchor of stability” during the eurozone recovery. When it comes to the recommendations, however, the IMF experts do again not shy away from getting involved with the politics of the euro crisis, welcoming this year’s marginal loosening of the fiscal stance: “(…) fiscal over-performance should be firmly avoided as it could imply a contractionary fiscal stance that is unwarranted in the current low growth environment.”

The Commission is more cautious on the question that has been dominating the eurozone debate for the past months: is Germany that is leading on fiscal consolidation (which makes it look like the teacher’s pet, something Chancellor Merkel was so pleased about in her home country) the real burden to the eurozone? It is hardly surprising that the Commission avoids this hot issue, since the report is a mere recommendation to the Council of Ministers. And, arguably, the Commission diligently follows a rather narrow mandate in assessing German fiscal policy and its 2013 national reform programme. However, against the background of a fierce debate (mostly resonating outside of Germany) on how to trigger jobs and growth in the eurozone the European Commission’s proposals look rather innocent. Frau Merkel, of course, will have been pleased not only with the findings, but also with the fact that the Commission basically restricted itself to inserting the data they collected in the Member States into tables without spending too much time on interpreting them.

The IMF underlines Germany’s crucial role in shaping the future institutional and legal framework of the eurozone. This reads like a hardly veiled criticism on Chancellor Merkel’s so far rather woolly ideas. Just last week, her joint proposal with President Hollande on establishing the function of a permanent president for the eurozone raised eyebrows even within her coalition in Berlin. While I believe it was right to respond to the French initiative launched by President Hollande, as I suggested in my previous blog piece, Merkel should not underestimate the attention she gets for such moves. She might have considered it as a friendly yet half-hearted response to the bruised neighbour, likely to end up watered down or even abandoned the moment its gets on the agenda of the 27 members. But Merkel should know that any move that might shed light on where Germany wants to take the eurozone is taken rather seriously these days and tactical moves are likely to be met with indignation.

Another more telling intervention of Angela Merkel received attention this week. In an interview with DER SPIEGEL the chancellor reiterated what has become in my opinion the word around which she develops her construction plan for Europe: coordination. In her world, the Commission president has a “coordinating function over the policies of the national governments” and therefore should continue to be nominated by the heads of state and government (with a certain role for the European Parliament to play). No more transfer of competencies to the Commission, but improved coordination in policy areas that can strengthen the competitiveness of the eurozone. Read again her Bruges speech of 2010 – it is pretty much in there already.

Needless to say that Merkel’s “c-word” has been a declaration of war to those who carry the “f-word” banner (in the continental, not the British understanding of federalism) advocating for strong and independent EU institutions. A widely overlooked decision: the heads of state used a clause in the Lisbon Treaty and agreed to keep one Commissioner for each Member State at the recent May summit. While this was only a formal adoption of a decision previously being granted to Ireland, Chancellor Merkel was surely pleased. After all, the European party families are gearing up their campaigns for the European Parliament elections in 2014 with joint candidates for the post of the Commission president. What a nightmare for the ‘c-lady’ to imagine a democratically legitimised president of the European Commission representing the majority in the EP, presiding over a reduced college of Commissioners. What would the reports of such a more independent figure have looked like?

After the questionable results of the “open methods of coordination” in the Lisbon Strategy of 2000 – will coordination as a mode of governance get its second wind? Frau Merkel is taking the lead in its revival.

Europe For Citizens

“This project has been funded with support from the European Commission. This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.”

Europe – Absent?

25. February 2013, von Almut Möller, Comments (1)

This is my first entry in the Eurozone 2013 blog. Based in Berlin, in the following months I will comment on the steps taken by EU leaders to reform the Eurozone from the German capital, and will include my observations on the German euro debate.

As it happens, the German President, Joachim Gauck, has just given his long-awaited Europe speech in Berlin. Surely, the outside observer might think, his speech was only one of many interventions in a Europe debate in full-swing in Germany. After all, this is a key country when it comes to fixing economic and monetary union (EMU), with more major steps that will affect the direction and functioning of the eurozone and the overall EU likely to be taken this year. Surely, one might think, in a year of federal elections there will be competing political and economic visions on the future of Europe, and the opposition parties will want to mobilize their respective constituencies in the battle for the chancellery.

You will be surprised to hear that compared to what is at stake, and contrary to what we have seen in the French 2012 presidential as well as in the 2013 Italian election campaign: Germans so far are not fretting about Europe.

I see three main reasons for Europe being largely absent from the campaign so far:

1. Crisis, what crisis? The crisis is not making the headlines, at least for the moment. And with the German economy still doing well, a majority of Germans – unlike fellow EU citizens in other countries – simply do not feel the impact of the crisis.

2. The Merkel factor. Germans tend to trust Angela Merkel’s ability to do what is necessary to help the countries in crisis to recover (and there is a sense of solidarity by now), and to keep an eye on Germany’s interests when negotiating the future make-up of the euro governance with the other euro members.

3. The consensus country. Because of 1) and 2), all opposition parties struggle to challenge Angela Merkel’s conservative party. Adding to this is that Germans currently seem to like the idea of a ‘grand’ coalition of Conservatives and Social Democrats, so there is a tactical temptation for the Social Democrats not to bark too loudly.

Going back to the president’s speech; it is unlikely to trigger a euro debate. The president in the German system does not have political clout and by custom does not get involved in politics. In today’s speech, President Gauck did not cross this line. But the office is traditionally used to shape fundamental debates, and I believe this speech will be influencing the parameters of the Europe debate among the elites in the months to come.

Indeed, the president presented some fresh thinking. Gauck, a pastor and civil rights activist in the German Democratic Republic, put Europe’s citizens at the centre of his hour-long speech. Hardly did he touch on the crisis, on the role of governments, and on detailed suggestions on how to make the European Union work better.

He must have felt that in Germany and across Europe, citizens feel disempowered by the crisis, by nonstop rhetoric that makes them fearful, by complex and technical measures difficult to grasp, and by diplomats negotiating about their future behind closed doors.

Gauck’s language therefore was a language of empowerment. This was the vision of a democrat, a free citizen of Europe, wanting to encourage Europe’s citizens to live up to the task of being citizens in a European res publica, learning to shape their future together.

Europe For Citizens

“This project has been funded with support from the European Commission. This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.”

Blog Authors

Adriaan SchoutAdriaan Schout

Dr Adriaan Schout is Deputy Director Research/Europe at Clingendael, Netherlands Institute of International relations. (read more...)

Alexandre AbreuAlexandre Abreu

Dr Alexandre Abreu is a 33-year-old Portuguese economist with a PhD from the University of London. Currently he is a lecturer in Development Economics at the Institute of Economics and Business Administration, Technical University of Lisbon, and a Researcher at the Centre for African and Development Studies of the same University.

Almut MöllerAlmut Möller

Almut Möller is a political analyst in European integration and European foreign policy. She is currently the head of the Alfred von Oppenheim Centre for European Policy Studies at the German Council on Foreign Relations (DGAP) in Berlin. (read more...)

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