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Opposition rejects Merkel government victories

November 26, 2014

The leaders of Germany's opposition have taken aim at the oft-touted victories of Chancellor Merkel's government. The grand coalition is making bad decisions, which will harm Germany's future, they say.

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Merkel Bundestag Debatte zum Kanzleretat 26.11.2014
Image: Reuters/S. Loos

On Wednesday, leaders of Germany's four leading parties - the Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), the Social Democratic Party (SPD), the Left and the Greens - addressed a full house in the Bundestag to debate the progress of the government.

Chancellor Angela Merkel's grand coalition controls roughly 80 percent of parliament between the CDU/CSU's 49 percent of seats, plus another 30 percent from its center-left junior coalition partner the SPD.

To date, the grand coalition's high points have been moving the country toward renewable energy, implementing a quota for women in the boardroom, announcing no new debts for next year and increasing its military presence in crisis zones.

But left with virtually no sway in parliament, the opposition parties - each with about 10 percent of the seats - took the opportunity on Wednesday to list their complaints against these high-profile achievements. The main grievance: Merkel's government has made fiscal decisions that sound good now, but will hurt Germany in the long run.

'Zero competence'

At the top of the list was the 2015 budget, namely, the grand coalition's announcement that Berlin would not take on any new debts for the first time since 1969. The balanced budget has been dubbed "the black zero."

The Left's deputy chairperson, Sahra Wagenknecht, rejected the virtues of "the black zero," arguing instead that praise for a policy that wouldn't see new investments into Germany was an "expression of zero competence in fiscal policy," especially at a time when growth projections had been revised downward.

By "hiding away its money in a bunker," the government was leading not only Germany, but other eurozone countries down a path that even Nobel Prize-winning economists had criticized, Wagenknecht added.

"Solid public finances don't exist without a dynamic economy," she said, pointing to the shortcomings of Germany's investments in digital technology compared to those in the United States, where Washington poured money into research that has contributed to the technology boom.

Greens Party faction co-chair Anton Hofreiter backed Wagenknecht's arguments, also pointing to Berlin's support for investments in China, while allowing infrastructure in Germany to crumble and fall behind competitors.

With an 80 percent majority, "surely, these [things] can be changed," Hofreiter said.

Geopolitical impact on economy

Much of Wednesday's debate revolved around geopolitical issues as well, including Germany's role in Ukraine, its fight against Ebola and its response to the crisis in the Middle East. Thomas Oppermann, chairman of the parliamentary group of the SPD, Merkel's junior coalition partner, fought back against the Left and Greens' arguments, and pointed to the importance of financial stability now, not later.

"[The opposition] is playing issues against each other, when one cannot work without the other," Oppermann said. "Future investment can only work with a solid budget."

Given Berlin's military commitments in foreign countries, while also protecting its security at home and allowing over 100,000 asylum seekers across its borders, it must maintain its finances carefully, he said.

Oppermann also pointed to the grand coalition's attempts to introduce renewable energy as a sign of commitment to the future, goals which Greens co-chair Hofreiter painted as unfeasible.

Rejecting Hofreiter's attempt to pit climate protection against business, Oppermann said Germany would still pursue its energy goals - reducing CO2 output by 40 percent by 2020 and building reliance on renewable energy to 80 percent by 2050 - instead of "developing the wrong alternatives."

Merkel packs no surprises

For all the criticism of her government, the chancellor glossed over the problematic policies that have caused her virtually powerless opponents to shake their heads and wring their hands, instead emphasizing Germany's perception abroad.

"Germany is one of the world's most competitive countries," she said.

Pointing to the effects of geopolitical situations on the German economy - for example, the massive influx of asylum seekers this year - Merkel stressed that Berlin must remain focused on its ability to finance its current state, without sacrificing the future.

While Asian economies are moving closer together, Germany and the EU must finalize the Transatlantic Trade and Investment Partnership (TTIP), a proposed free trade scheme, with the United States or face "huge disadvantages," she said.

"The world isn't going to wait on Europe."

kms/nm (AFP, Reuters, dpa)