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Germany’s new leaders want to reform the EU

Wester Van Gaal - EU Observer — Thu, 25 Nov 2021 07:09:50 +0000

The SPD, the Greens and the pro-business FDP on Wednesday (24 November) presented a deal to form a new German government, including a European reform agenda that should lead to a federal Europe.

“My most important message: the traffic light [coalition] stands,” Olaf Scholz told press – a reference to the parties respective colours red-yellow-green.

“We will modernize our country, build up a climate-neutral industry with cutting-edge technology that is ‘Made in Germany’,” he said, describing what the deal called the “socio-ecological market economy.”

“This will not come cheap,” he said. “This new coalition will need to make massive investments while adhering to national debt brake.”

At the start of the talks, many expected the negotiations to drag on due to the differences between the Greens and business-friendly FDP.

But a final compromise was reached on Wednesday, two months after the election, with the Greens abandoning their plans to introduce tougher speed limits, and FDP accepting a stronger than expected climate mandate (that includes an accelerated coal phaseout by 2030, eight years earlier than previously planned) and an end to power generation from gas by 2040.

EU federation?

The 177-page agreement also proposes ambitious EU reform. It will push for a Conference on the Future of Europe to turn into a constitutional convention, while supporting “necessary treaty changes” that will “lead developments to a European federal state.”

Top of the list is a new system for European elections that allows transnational lists for the European Parliament, which should also get a right of initiative – in other words the right to propose new legislation.

Currently, MEPs in the EU parties represent a national party. This move will start a move to a broader decentralized European voting system.

The coalition also favours the next commission president to be a ‘Spitzenkandidat’ [German for ‘lead candidate’], continuing the disputed system whereby individual EU parties put forward their own top candidate for the presidency.

Germany has in the past sabotaged its own system on this, pushing Ursula von der Leyen ahead of Frans Timmermans, S&D’s Spitzenkandidat and initially considered favourite for the top spot.

Finally, the it wants a stronger EU foreign office by replacing the unanimous voting system requiring all EU ministers to agree, with a qualified majority, overseen by a dedicated EU foreign minister.

Finance ministry goes to FDP

The Greens will receive the ministries of economy and climate and of foreign affairs. They also get the right to propose a future EU commissioner, in case Ursula von de Leyen does not get re-elected – a first for the party.

Having fiscal hawk Christian Lindner as finance minister, the country’s second-most powerful position following the chancellery was one of the FDP’s make-or-break conditions.

And while Lindner told press Germany will continue to be an “advocate for sound finances”, but also stressed Germany and Europe need investment to modernise.

The agreement does not make mention of a return to pre-pandemic strict fiscal discipline, which some feared, but instead states EU-fiscal rules need to be “developed further” and should be “simpler and more transparent.”

It also adds the goal of possible reform must be to “secure growth, safeguard debt sustainability and foster green investment.

“No red lines here, but an open and constructive opening position for negotiations,” Lucas Guttenberg of the Delors Centre, a think-tank based in Berlin, tweeted.

Rule of law

Significantly, the agreement also included stronger wording on the rule of law. MEP Sven Giegold (Greens/EFA), who negotiated on behalf of the Greens, told press the new government feels the EU rule of law mechanism has not been used “decisively enough in the recent years.”

The agreement calls on the commission not to release recovery fund money to countries that do not ensure an independent judiciary, adding that Germany will vote against releasing the funds if countries do not respect the rule of law.

However, it does not specifically mention Poland or Hungary – which have both challenged the mechanism at the European Court of Justice (ECJ).

Hungary has also introduced legislation that targeted LGBTIQ people.

Sustainable taxonomy

The document does not mention the EU taxonomy for sustainable investment.

In recent weeks, French president Emmanuel Macron has put pressure on the commission and other member states to include nuclear energy in the bloc’s sustainable investment rules.

France has entered an alliance with pro-gas member states to form a majority at the next EU council meeting in December to push through the controversial energy source, and label it suitable for sustainable investment.

Earlier on Wednesday, a group of MEPs pushed the German and French governments not to label nuclear and gas as green.

In response, Giegold declined to say what the new government’s stance was on the potential inclusion of gas in the green rulebook, adding that “it is not in the German interest to start with a fight over the taxonomy.

Members of the respective coalition parties will still need to vote for the deal, but this is expected to be a formality, and the intention is that SPD leader Olaf Scholz will be elected chancellor by the Bundestag in the week of 6 December.

Source: https://euobserver.com/democracy/153624

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Merkel on brink: Support for Germany coalition PLUMMETS to ALL-TIME LOW

Ciaran McGrath — Fri, 21 Sep 2018 21:03:05 +0000

SUPPORT for Angela Merkel’s German coalition has plummeted to its lowest ever level, a new poll has suggested, with the beleaguered Chancellor beset by problems on all sides as she desperately tries to hold her Government together.

Angela Merkel’s coalition is more unpopular than it has ever been, the poll suggests (Image: GETTY)

The ARD DeutschlandTrend survey put support for Mrs Merkel’s conservative alliance – between her Christian Democratic Union (CDU) and its Bavarian allies, the Christian Social Union (CSU) – at 28 percent, down one point from September 6, its lowest ever figure.

Mrs Merkel, who has led Germany since 2005, only narrowly averted the collapse of her coalition government in June after a row between the CDU and the CSU over immigration policy.

The conservative sister parties and their Social Democrat Party (SPD) junior coalition partners this week agreed to oust the head of the BfV domestic agency over accusations that he harboured sympathies to the far-right – but only by effectively giving him a promotion.

The decision to give Hans-Georg Maassen a deputy minister position at the interior ministry was derided as a bad compromise which allowed the ruling parties to paper over deep differences which could make their coalition unworkable.

Mr Maassen had come under fire after questioning the veracity of a video appearing to show foreigners being attacked on the streets of Chemnitz by neo-Nazi extremists – in direct contradiction to Mrs Merkel.

He was defended by interior minister – and CSU leader – Horst Seehofer, who is now his direct boss.

However, the CSU has since hinted the decision to give him a new job could now be reversed in response to the criticism.

The telephone poll of 1,035 people, which was conducted between September 17 and 19, also indicated far-right party Alternative for Germany (AfD) could expect to be the second-largest party in the German Parliament, were an election held tomorrow.

CSU leader Horst Seehofer is also widely unpopular, according to the survey (Image: GETTY)

The AfD stand on 18 percent, with the SPD on 17 percent, and the Greens on 15 percent.

Overall, the so-called grand coalition would receive 45 percent, meaning a similar alliance next time round would not be possible.

The survey also suggests Mr Seehofer’s popularity has also taken a hit, possibly as a result of recent clashes over immigration, with just 28 percent approving of the job he was doing, compared with 59 percent disapproving.

Speaking about the decision to move Mr Maassen into Mr Seehofer’s department, Christian Lindner, leader of the Free Democratic Party, which took nine percent in the poll, described the situation as a “farce”.

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Germany’s Merkel suffers blow as FDP pulls out of coalition talks

BBC — Mon, 20 Nov 2017 14:06:53 +0000

Talks on forming a coalition government in Germany have collapsed, leaving Angela Merkel facing her biggest challenge in 12 years as chancellor.

The free-market liberal FDP pulled out after four weeks of talks with Mrs Merkel’s CDU/CSU bloc and the Greens.

FDP leader Christian Lindner said there was “no basis of trust” between them.

What happens next is unclear, but Mrs Merkel has met President Frank-Walter Steinmeier, who has the power to call elections.

Mrs Merkel said she regretted the collapse, adding she would formally tell the German president that negotiations had failed.

CDU deputy chairman Armin Laschet told journalists that Mrs Merkel had held a conference call on Monday morning with the party leadership and had retained its support.

Mrs Merkel’s bloc won September’s poll, but many voters deserted the mainstream parties.

“As chancellor, I will do everything to ensure that this country is well managed in the difficult weeks to come,” she said.

Back to the ballot box?

Analysis by the BBC’s Jenny Hill in Berlin

This is – for post-war Germany – an unprecedented political crisis that could spell the end of the Merkel era.

Weakened by a poor election result in September, the proposed coalition was Mrs Merkel’s only shot at forming a new government.

Germany will now – in all probability – have to go back to the ballot box. But it’s not at all certain that Mrs Merkel’s party will want her to lead them into a fresh election.

The ensuing uncertainty has consequences beyond Germany. Mrs Merkel – who did not attend a summit of EU leaders in Sweden last week – will remain preoccupied with domestic affairs for some time yet. This was, she said last night, a time for deep reflection.

Mrs Merkel must now fight for political survival. The leader who for so many people has represented stability now is fast becoming a symbol of crisis in the heart of Europe.

What went wrong in the talks?

It is not quite clear.

The parties involved in the talks are reported to be deeply divided over tax, asylum and environmental policies.

Although rumours had spread that a deal was close, the FDP’s leader emerged from the venue in the middle of the night surrounded by his party colleagues and told reporters that the party was leaving the process.

Image copyrightAFP/ GETTY IMAGES

Image captionChristian Lindner outlined a string of problems his party had with the others

He said that while the FDP knew it could not steer the course of the entire republic with just 11% of the vote, the parties involved in talks had “no shared vision” of how the country should be modernised, and four weeks of talks had left them with “many inconsistencies, unanswered questions and conflicts”.

“It is better not to rule than to rule badly. Goodbye!” Mr Lindner said.

The co-leader of the Greens, Simone Peter, said the FDP had been “irresponsible, dubious and calculating”.

Her party colleague Katrin Göring-Eckardt said the Greens had been “ready to talk” and found a “much greater understanding” with the CDU and FDP through the talks, especially over migration politics, climate change and agriculture.

Mrs Merkel blamed differing cultures and styles for the collapse but said: “We think we were on a path to finding a solution.”

But a spokesman for her party, Stephan Mayer, told the BBC he did not think the FDP ever intended to join the coalition.

“I have the impression that… it was planned for a long time to quit the negotiations and not to form this coalition,” he said.

One of the sticking points is reported to be whether Syrian refugees should be allowed to bring family members to join them in Germany.

Mrs Merkel’s conservatives, mindful of the electoral success of the anti-Islam, anti-immigrant AfD, are cautious and want to extend a moratorium on allowing migrants to be reunited with their families. The FDP agree with them but the Greens say that the current freeze should be allowed to expire next year.

After winning its first parliamentary seats, AfD (Alternative for Germany) vowed to fight “an invasion of foreigners”.

What happens next?

There are a few options.

Mrs Merkel could form a minority government, for instance with the Greens. But this would leave her having to patch together support for every vote – a big change for a leader who has been used to ruling as part of a grand coalition.

That coalition could return – Mrs Merkel’s Christian Democrats joining with the second-largest party in parliament, the social democratic SPD, would have a comfortable majority.

The SPD has repeatedly ruled out this option. “Voters have rejected” it, said leader Martin Schulz on Sunday, and journalists saw an internal document on Monday that stated the party was still “not available” for a grand coalition. But party leaders may yet be persuaded to change their minds.

Or there could be fresh elections. These would need to be called by President Steinmeier, after a long drawn-out process that would take months. Analysts say new elections would be likely to benefit the AfD most, so other parties would probably try to avoid them.

What reaction has there been?

France’s President Emmanuel Macron, who alongside Mrs Merkel is a key player in the EU, said: “It is not in our interest that the situation becomes tense.” A spokesman for his office said France was hoping for a “strong and stable” Germany.

A spokesman for the UK Prime Minister Theresa May said the talks were a matter for German politicians.

Margaritas Schinas, a spokeswoman for the European Commission, told reporters that she was confident Germany would keep having “stability and continuity” as provided for by the constitution.

Economically, the reaction was felt in the stock market, with Deutsche Bank shares down 1.3%. But after a dip the euro recovered slightly.

“Uncertainty is poison for the economy,” said Jörg Krämer, the chief economist at Commerzbank.

“But the collapse of the talks can hardly be a shock for businesses after four agonising weeks of negotiations.”

Source: http://www.bbc.com/news/world-europe-42047532

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