German elections

Will elections in Germany change anything?

All Europe’s hopes are pinned on the German elections on September 24th. Wolfgang Münchau, writing in the FT, is sceptical that anything will change as a result, and if it does, the outcome is likely to be even more austerian (eg the FDP, a potential coalition member, want Greece out of the Eurozone).
The truth is that there will be no change in the German government’s policies on Europe (regardless of its composition) until there is a change of mindset. Germany’s constant primary surplus makes it look outwardly like a model economy. But Germany is also experiencing the lowest level of investment in its history, with record levels of savings,  in spite of negative ECB deposit rates. At the same time, wages are being suppressed and casual work is on the rise.
What is needed is a rebalancing of the European economy and the Eurozone, to eliminate the structural imbalances that are pitting one nation against another. DiEM25’s European New Deal contains a program to do just that, and what’s more, it’s designed to work within the existing European institutions and rules – so the German government should have no problem signing on to it.
 

Adam Newby is coordinator of the Andalucía DSC.

 

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