German Chancellor Angela Merkel’s conservatives won re-election yesterday, but their Free Democrat coalition partners did not earn enough votes to retain their seats in the Bundestag, so a new coalition will may have to be formed. The Economist has more:
Angela Merkel, chancellor of Germany for eight years, seems likely to stay in office for a few more. She has won for her party, the Christian Democratic Union (CDU), a sparkling election result, with about 42% of the vote when including its Bavarian sister party, the CSU, according to exit polls and estimates. Depending on how the smaller parties fare, that may even suffice for an absolute majority of seats in parliament, allowing Mrs Merkel to govern without a coalition partner as only Konrad Adenauer, also of the CDU, did in the 1950s.
But as of the evening of this election day, September 22nd, other outcomes were still possible. For one, voters delivered a stinging rebuke to Mrs Merkel’s current coalition partner, the liberal Free Democrats (FDP). Having been thrown out of the Bavarian state parliament a week ago, and the state parliament of Hesse today, the FDP seemed likely to be ejected from the federal parliament as well. Its leadership will have to go, its message will have to be renewed, if it is to have any future in German politics.
The greatest unknown on this Sunday evening is the fate of the newest party in German politics, the euro-sceptic (as in: sceptic about the euro, not necessarily the European Union) Alternative for Germany. At 4.9% in the exit polls, it teeters on the edge of the 5% threshold necessary to get into parliament.
Earlier this year, I linked to a Zero Hedge piece which predicted if not the end of the world, the end of stability in Europe following this particular electoral outcome:
There will be nothing but lying until September 22, 2013 which is the date of the German elections. This is the drop dead date that I have been asked about for so long. Then, as soon as the celebration is over that Ms. Merkel is to remain in power, the world will turn on its axis. The status quo will disappear and there will be a “shock and horror” campaign as the Southern nations of Europe demand more help and Germany squirms and then refuses to provide it because it does not have the assets to do so.
Spain, France, Portugal, Greece, Cyprus, and even Italy are all going to line up at the trough only to discover that the promise of water was just that, a promise, and does not exist. A Biblical drought will be upon the Continent and from the political battles will emerge new alliances and new screams calling the traitors by name. The twin towers upon which the markets rest, money from nothing and fairy tale financials, will decompose in the light of this new sun and our old friend, Fear, will return to haunt us.
Let us cast our eyes toward Berlin and see whether this is prophecy or mere doom-mongering.
