Friday, January 30, 2009

Germany's grand coalition on the rocks

Germany's grand coalition on the rocks

Frank-Walter Steinmeier and Angela Merkel (18 December 2008)
The SPD-CDU marriage has proved more harmonious than had been expected

By Steven Rosenberg BBC News, Berlin

Some marriages are made in heaven. But Germany's "grand coalition" was a marriage born of the ballot box.

After an inconclusive federal election in 2005, neither the centre-right Christian Democratic Union (CDU) nor the centre-left Social Democratic Party (SPD) had enough votes to form a government without the other.

So, at the altar of German politics, the country's most bitter political rivals had little choice but to pronounce the words: "I do" (while secretly thinking: "We don't really want to, but we've got no choice").

The "marriage contract" paved the way for the CDU's Angela Merkel to become chancellor, but gave the bulk of cabinet posts to the SPD.

I think they haven't achieved anything, except that they've managed to stay together
Alan Posner, Die Welt

There was little optimism surrounding the partnership.

At the time, critics dismissed it as a "marriage of elephants", predicting that the rival parties would lock trunks for the next four years, paralysing the whole system of government.

"It was a marriage of losers," Alan Posner from the newspaper, Die Welt, complains. "I think they haven't achieved anything. Except that they've managed to stay together."

Odd-ball couple

It is certainly true that the political partnership has not produced many grand reforms.

But the marriage has proved more harmonious than had been expected.

Angela Merkel and Frank-Walter Steinmeier on board a private jet (23 November 2005)
There was little optimism surrounding the partnership when it began in 2005

There has been surprisingly little infighting and that has gone down well with the German public.

"Germans have this tendency to be slightly in favour of a great majority," says Jan Techau, a political analyst.

"They like the idea of not too much bickering, of binding everybody into a great compromise. It has an intrinsic kind of appeal."

But the "grand compromise" of 2005 is coming under pressure.

The odd-ball couple of German politics is now experiencing the three-year itch.

With Germany gearing up for fresh federal elections this autumn, cracks have emerged inside the grand coalition.

Both sides have indicated they want out.

After September's election, the CDU (and its Bavarian sister party, the Christian Social Union) would prefer a coalition with the pro-business, liberal Free Democratic Party (FDP). The SPD is looking to pair up with the Green Party.

Economic crisis

But something strange is happening.

As keen as they are to split, the grand coalition partners have suddenly been forced to appear far more united than they really are.

DAX stock exchange (14 January 2009)
In a situation like this, the general public wants government to function
Ralf Neukirchen, Der Spiegel

That is a result of the economic crisis.

Germany is facing its worst recession for 60 years: the German public expects its government to pull together, not tear itself apart.

So Chancellor Merkel and the Social Democrat Vice-Chancellor, Frank-Walter Steinmeier, have been putting on a united front to help the government fight the downturn.

This week, the government adopted a second economic stimulus package worth 50bn euros (

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