German chancellor Angela Merkel is traveling to Moscow on Saturday, officially to discuss the conflicts in Libya, Syria and Ukraine, as well as the tension between Iran and the United States, with Vladimir Putin.
If the German economy does poorly, so will the eurozone’s. A mere .2 percent growth is projected for the first quarter of 2020. This should be a wakeup call to German policymakers.
There are the usual suspects: underdeveloped infrastructure, underinvestment in education, export dependency.
They all stem from Germany’s obsession with surpluses. Revenues generated by exports are not reinjected into the economy. Rather, they sit comfortably in savings accounts. This is the reason for negative interest rates.
Not spending money is one way to get rich. But to grow its economy, or prevent a slowdown, Germany must put its money to work: invest in education, infrastructure and public goods.
Its reluctance to do so affects everyone in the euro area. Germany accounts for nearly 30 percent of the eurozone’s GDP. If Germany spent more at home, it would reduce its current account surplus and increase demand for the products and services of other European nations. Read more “Germany’s Surplus Obsession Hurts the Eurozone”
Senators in the United States have approved sanctions against companies that are involved in building the Nord Stream 2 pipeline between Russia and Germany.
The sanctions, which President Donald Trump has yet to sign into law, are a last-ditch attempt to halt the pipeline’s construction, which the Americans argue will only increase Europe’s dependence on Russian gas and hurt Ukraine’s position as a transit nation.
For the first time in three years, the “Normandy Four” are due to meet in Paris on Monday.
This negotiation format, consisting of France, Germany, Russia and Ukraine, brought about the Minsk I and Minsk II ceasefire agreements in 2014 and 2015. Even though their implementation was incomplete, the Normandy Four was still seen as a somewhat successful example of multilateral cooperation.
Earlier this month, I argued that lurching to the left would be a risky strategy for Germany’s Social Democratic Party (SPD), but that the alternative — continuing to rule in a grand coalition with the center-right — is too.
A change could scare off centrist voters, who have an alternative in Angela Merkel’s Christian Democrats or Germany’s pragmatic Green party. But the grand coalition has wearied leftists, who have an alternative in the Greens and the far-left Die Linke.
Germany’s Social Democrats (SPD) are increasingly forced into coalitions with the far left. Such pacts haven’t hurt their counterparts in Portugal and Spain, but Germany is a more conservative country with a politics of consensus and arguably less need for redistributive policies.
Annegret Kramp-Karrenbauer, the woman Angela Merkel is grooming to be her successor, was sworn in as Germany’s defense minister last week, replacing Ursula von der Leyen, who was elected president of the European Commission.
The appointment came as a surprise, for two reasons:
Kramp-Karrenbauer, who was elected head of the ruling Christian Democratic Union in December, has claimed she had no interest in a cabinet position.
A week after a Taliban attack in Kabul left six people dead and over a hundred wonded, an all-Afghan peace summit is due to start in Doha on Sunday. Germany is co-sponsoring the meeting with Qatar.
Markus Potzel, Germany’s special representative to Afghanistan and Pakistan, made the announcement and said, “only Afghans themselves can decide the future of their country.”
Potzel has become a familiar face in Afghanistan. Just a few weeks ago, he held meetings with key stakeholders across the Afghan political spectrum. In May, he had at least two meetings with the Taliban.
Germany wants to play an active role in the peace process and ensure that it is inclusive. The Afghan government’s exclusion from bilateral talks between the Taliban and the United States is a concern in Berlin. The Germans believe only an all-Afghan process can pave the way to a sustainable settlement. The hope is that the Doha meeting will be a step in that direction. Read more “Germany Seeks Active Role to Ensure Inclusive Afghan Peace Process”