Wednesday 1 December 2021

Germany's Coalition Agreement: A "Lowest Common Denominator" Deal

 

Germany's Coalition Agreement: A "Lowest Common Denominator" Deal

by Soeren Kern  •  November 30, 2021 at 5:00 am

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  • It remains to be seen how long the new government — to be formed by a fractious three-way coalition consisting of the center-left Social Democrats (SPD), the environmentalist Greens and the pro-business Free Democrats (FDP) — will last.

  • Olaf Scholz has said that the new government will not seek "the lowest common denominator" but its coalition agreement appears to be just that. Far from ending the Merkel era, the next government may end up being a continuation of it.

  • "When it comes to money, the coalition agreement lacks specifics. It is completely unknown how the coalition will finance all of its plans." — Michael Hüther, Director, German Economic Institute.

  • "In future, the task of the police is no longer to prosecute and prevent criminal offenses, but to give politically correct preference to certain groups of offenders.... Reality is a foreign word. Inflation? Crisis on the Polish border? Energy shortages? Unemployment? Budget deficits? Not an issue. The main thing is that grazing animals and humans make room for the wolf." — Roland Tichy, German commentator.

  • "In reality, none of them really agrees on anything very much except that they think it is about time they had a go at running a ministry or two." — Michael Lynn, The Spectator.

  • "If this all sounds lacking in ambition, that's because it is.... Germans voted as if they want a government that would sit out major arguments about the country's economic or strategic direction." — Editorial Board, Wall Street Journal.

  • "Perhaps the biggest worry about the new coalition is that it may spend too much of its time arguing." — The Economist.

Olaf Scholz, who narrowly won Germany's general elections in September, has said that his new government will not seek "the lowest common denominator," but its coalition agreement appears to be just that. Far from ending the Merkel era, the next government may end up being a continuation of it. Pictured: Party leaders of the coalition (from L to R) Christian Lindner of the Free Democrats, Olaf Scholz of the Social Democrats, and Annalene Baerbock and Robert Habeck of the Greens, on November 24, 2021 in Berlin. (Photo by Sean Gallup/Getty Images)

The three parties planning to form a new federal government in Germany have presented a coalition agreement that is to serve as a pre-agreed policy roadmap for the next four years.

The platform for the new government indicates there will be little substantive change from the policies pursued by outgoing Chancellor Angela Merkel.

The lack of bold fresh ideas is the direct consequence of an inconclusive election in September and that the parties seeking to form a new government are ideological rivals that do not agree on almost anything.

Germany's current finance minister, Olaf Scholz, who narrowly won the general elections on September 26, is expected to be inaugurated as chancellor in the first week of December.

It remains to be seen how long the new government — to be formed by a fractious three-way coalition consisting of the center-left Social Democrats (SPD), the environmentalist Greens and the pro-business Free Democrats (FDP) — will last.

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