Grand coalition
‘The grand coalition presents: More spending, more charges’

‘Germany can no longer serve as an example to Europe’

The contract for a new grand coalition government between Angela Merkel’s Christian democrats and the Social Democratic Party, which was presented on November 27, has not met with much enthusiasm in the German press. For some, the long-awaited deal is too generous to the left, while others argue that it fails to take into account the interests of Europe.

Published on 28 November 2013 at 14:31
‘The grand coalition presents: More spending, more charges’

Frankfurter Allgmeine Zeitung is strongly critical of the deal, and in particular of the “social entitlements”, which include a minimum wage of €8.50 and full retirement at age 63 (for a minimum of 45 years worked) instead of age 67, that the socialists obtained from Chancellor Angela Merkel. For the conservative daily, it amounts to an “overcooked mush” that will be “easy for everyone to digest” —

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A grand coalition always has a big heart. That is why the people prefer them to small coalitions. From this point of view, Germans will not be disappointed by the third grand coalition [in the history of the Federal Republic]. Each of the three parties has shown that they can be generous to the little people, and the result is a pact that has overturned the horn of plenty to douse the country with social entitlements. With the minimum wage, mothers’ retirement [an extra €28 euros per month and per child from 2014] and dual citizenship, there is something in it for everyone. [...] [But] many Germans will be affected by the hidden cost of these blessings, even if it only weighs on future generations.

Die Welt is outraged for the same reasons: “This coalition has no idea either of itself or of what it can demand from this country,” announces the newspaper, which argues that in view of its decision to fatten up its welfare state, Germany can no longer serve as a model to Europe —

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This coalition contract oozes with post-heroic, narcissistic state socialism. The freedom of action established by former [social-democratic] chancellor Gerhard Schröder to bring prosperity to the national economy and fight mass unemployment has been systematically destroyed. The message it sends to Europe is disastrous. Having preached austerity to crisis stricken countries, we have now decided to fatten up our already chubby welfare state instead of putting it on a diet. Germany can no longer serve as an example to Europe.

"The new government is ignoring the crisis in Europe," adds Wolfgang Münchau at Spiegel Online. The leader writer regrets that on the issue of banking union, only small changes were made to the contract.

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The lack of change in crisis management policies shows that we will not move forward on one of the most significant issues of economic policy. A true banking union with a common European fund for the dissolution of banks and a common guarantee for savings instruments would be a significant contribution to resolving the crisis. Even more important is a policy to quickly cancel debt. With this grand coalition, the SPD and Angela Merkel are committing the historic error of delaying bankruptcy.

As for German daily Die Tageszeitung, it emphasises the fact that Angela Merkel imposed her will regarding taxes – which will not be increased for the wealthy, contrary to the demands of the Social Democrats – and regarding the management of the euro crisis. However, the left-leaning paper hails the introduction of a minimum wage saying it will lead to –

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better conditions for the working poor. Everywhere, even if it only goes into effect as of 2017, there will be a minimum wage of €8.50/hour. Unstable jobs will be better regulated. The tone has been set: those who work must not be exploited as was the case before. [...] This coalition contract is a sort of manual for repairing the damaged fabric of society.

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