Sunday, September 27, 2009

German Election Results

Probably Merkel will be little more circumspect than what other wise she could have been. Agenda wise she will be able to push more of Right agenda, but that may come at the political cost of her own party CDU since she was not able to improve her position. Her coalition partner FDP will be encroaching more on Right constituency. In any case that is a rear view. What happens in coming years - except grim days for main opposition Socialist Party SPD - all other major players are equally staked in German political sphere. May be more of Right economic policy will be better as Global Economy is on upswing. This could help to rejuvenate European economy in certain sense, but anything earth shattering - that seems unlikely. With further improvement in their performance, Greens will remain a powerful voice in German politics.

Outside Germany, Merkel will be able to continue her hawkish monetary policy with force. More tax cuts, favored policy of FDP, will come on road too. With Obama, what it means Germany will be giving hard time to adjust their export based economy as may be recommended by IMF. But even otherwise also, if SPD would have gained, Germany would have been still reluctant to adjust their export based economy. So in that sense there seems to be little change for rest of the world. In short, with able politics of Merkel, there will be not any surprises for anyone and Germany will continue it's stable, conservative, well known foreign policy postures in world arena.

One change which will be noted will be absence of Steinmeier as German Foreign Minister, who in effect expressed 'glee' for the end of dominance of American Economy during this Great Recession of 2008. That can make life bit easier for White House but jury is out since the new incoming Foreign Minister (leader of FDP) is an unknown entity.

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