Mandate for Change in Germany (Merkel)

[WriteDown]

Source: WSJ

BERLIN -- A center-right alliance led by German Chancellor Angela Merkel was set for victory in Germany's national elections on Sunday, opening the door to modest tax cuts and labor-market changes that could help strengthen the fragile recovery in Germany's crisis-battered economy.

Ms. Merkel's conservative Christian Democratic Union and its pro-business ally, the Free Democratic Party, were set to win a small majority in Germany's lower house of parliament, the Bundestag, according to early results. The CDU, its Bavarian conservative sister-party, the Christian Social Union, and the FDP won 48.4% of the national vote on Sunday, according to projections by state broadcaster ARD.

"For corporate Germany, this is a good signal," said Thorsten Polleit, economist at Barclays Capital in Frankfurt. "The FDP, which will feel very confident now, and much of the CDU will want to bring down government spending in order to cut income taxes."

The parties are expected to form a new national government quickly, replacing the fractious bipartisan coalition between Ms. Merkel's CDU and the left-leaning Social Democratic Party that has ruled Germany since 2005.

For the U.S. and other German allies, the election result will bring continuity in German foreign policy, including on Afghanistan, where the FDP is expected to continue to support German troops' presence, while calling for an exit strategy in the medium term. Unlike the SPD, which has had a sometimes difficult relationship with the U.S., the FDP has long been a staunch proponent of Germany's trans-Atlantic partnership.

Read more: http://online.wsj.com/article/SB125403307571043923.html?mod=igoogle_wsj_gadgv1&

[MissHoneychurch]

1. A government

which will be good for businesses and bad for employees.

[Selatius]

2. Is the leadership in the Social Democratic Party and Socialist Party that incompetent over there?

That they would let themselves get out-maneuvered at the polls?

[shotten99]

4. Bigger story there

Chancellor Shroeder made some really unpopular moves a few years ago and it wounded his party badly.
That, and the left is split among 3 parties: the SPD, die Linke and the Grunen.

[MissHoneychurch]

5. The problem is

that the SPD moved too center for its voters so a lot of them voted for the Socialist Party. They gained a lot in this election. But since they are the follow-up party of the SED (former East-German monopolist party) no one wants to ally with them. But they took away a lot of votes of the SPD. Also, a lot of SPD voters stayed home this year.

The SPD needs to find back to their old programs, being more social again. Then they will get back votes. Or maybe in the future they will merge with Die Linke again.

[David__77]

7. The Left Party will emerge as a greater force.

There is only one socialist party in Germany, and it isn't the SPD. The SPD gave that up 50 years ago. Germany, homeland of Karl Marx, has a proud progressive tradition, but it isn't well-served by SPD.

[harmonicon]

6. You can't blame the parties for how people want to vote.

If I remember correctly, there were five (maybe it was only four, but I think five) parties that received over 10% of the vote each. I think that's good news for democracy, so I say "bravo" to Germany. Let them sort themselves out - they're fully capable. Could you imagine if we had that dynamic of a political system? I think it would be great.

[shotten99]

3. It's going to be ugly for the working class there.

The CDU/CSU isn't usually too nasty on economic policies, but the FDP are a neo-liberal's wet dream.
The CSU really didn't do much to help carry their weight this time around meaning that the FDP will likely
try to assert themselves more often than they had before.
Yuck...