Merkel's coalition suffers defeat in crucial state election

[suffragette]

Source: Deutsche Welle

Exit polls put the CDU at 34.3 percent of the vote, down 10 percentage points from the last vote in 2005 and their worst showing in the state ever. The center-left Social Democrats didn't do much better with some 34.4 percent of the vote according to the exit polls.

However, with the Free Democrats, the CDU's current coalition partner, coming in with only 6.6 percent of the vote, the SPD could form a coalition with the Greens. According to the exit polls, they almost doubled their showing from the last state election and secured 12.5 percent. The Left Party won 6 percent.

It was the first test for the Chancellor Angela Merkel's six-month-old coalition CDU and FDP government. A victory for the SPD and the Greens would cost the ruling government its majority in the Bundesrat, the upper house of parliament which represents the federal states. Such a loss would make it difficult for the coalition to push through its tax cuts and other planned reforms.

Another possibility is that the CDU and the SPD could form a grand coalition and rule the state together.

Read more: http://www.dw-world.de/dw/article/0,,5558046,00.html

[dkf]

1. What does this mean for the Greece bailout?

Damn

[suffragette]

2. Looks like SDP wants banks to share more burden of this

http://www.guardian.co.uk/business/feedarticle/9052977

Steinmeier added, however, that his party wanted German aid for Greece to be linked to a longer-term commitment to force banks to participate in a solution to the Greek problem and steps to limit speculation in markets.

Imagine the Greens and the Left Party would insist on that even more.

[sabrina 1]

4. Good news for Greece if Merkel were to be defeated.

[suffragette]

3. Seems like tax and health care cuts also played a strong role

Majority of Germans against Merkel's tax cuts
http://www.thelocal.de/money/20100108-24443.html
Chancellor Angela Merkel’s conservative Christian Democrats (CDU) and their junior coalition partners the pro-business Free Democrats (FDP) only narrowly succeeded at passing controversial €8.5-billion in tax relief in December. But the government has made no secret the package is just a taste of larger cuts planned for the coming years.

However, many economists have said the country's dire finances cannot handle the new fiscal measures, and the poll showed that most Germans agree. Some 58 percent of those asked by ARD said they were against the tax cuts, while 38 percent said they were in favour of a sweeping tax reform in 2011.


German Election: Why Merkel's Tax-Cut Pledge Is a Hard Sell
German voters who love their state benefits are skeptical of pledges to cut taxes that could reduce those serviceshttp://www.businessweek.com/globalbiz/content/sep2009/gb20090925_062185.htm
One reason that the CDU-FDP tax-cut pitch hasn't caught on with voters is that so many people receive government pensions, unemployment benefits, free university tuition, or other public largesse. To these voters, a promise to cut taxes sounds more like a threat to trim benefits.

In addition, voters may doubt—correctly—that the center-right can simultaneously cut taxes and balance the budget so soon after pumping billions into the economy via the country's cash-for-clunkers scheme and other stimulus programs.


http://www.time.com/time/world/article/0,8599,1933169,00.html
Merkel has said that health-care reform will be one of her new government's top priorities. Although medical treatment in Germany is among the best in the world, the country's health-care system faces an uncertain future due to exploding costs, a rapidly aging population and a burdensome bureaucracy. About 90% of Germany's 82 million people are covered by the country's public health insurance companies, which are currently funded by contributions from employers and employees. Merkel's reform plan is expected to include a freeze on employer contributions — shifting the burden to individuals — and the creation of a government commission to study the possibility of moving from income-based contributions to a flat-rate health insurance charge. Union leaders say the unemployed and pensioners would suffer the most under such a system. "There'll be plenty of bitter conflicts over tax and health reform once policies are implemented," Niedermayer predicts.

[Ian David]

5. She could probably use a good massage right about now...

[suffragette]

6. Recently showed that video to a friend who hadn't

ever seen it.
Still gives me the creeps.