Analysis: “Germany’s crisis is Europe’s and the timing could not have been worse”

There has been no lack of conflicting topics for the Social Democrats, the Greens and the Liberals. Arms to Ukraine, crisis in the car industry, migration and risk of Islamist terror. In the end, as in many relationships, it broke down over money. Where the Social Democrats and the Greens wanted to ease the rules on government debt and borrow to fill a large budget deficit. While the liberals instead wanted to save on government spending. Frontal collision.

The timing could hardly have been worse.

Unclear with Scholz’s government documents

In the same breath that Chancellor Scholz on Wednesday underlined the importance of Europe sticking together now that there is a change of power with Trump in the United States, he kicked the liberals out of his government. And new elections are likely to await. The right-wing nationalist AfD, Alternative for Germany, which has so far been kept out of influence, could become the second largest party. To continue keeping them isolated, another experiment may be required. Between which parties is unclear today.

Germany’s dilemma is Europe’s dilemma.

Uncertain even in France

In France, the situation is similar after the new elections held this summer. There, a weak government tries to keep the right-wing nationalists out of power and at the same time find a majority for its budget. The president may have to resort to a special decree to push it through.

When the EU’s two locomotives are dragged along with weak and crisis-ridden governments, tough, costly and unpopular decisions can be postponed. Not just at home in France and Germany. But also when the EU is preparing for a possible trade war with the US. And prepares for the threat of an attack from Russia.

Germany’s crisis is Europe’s crisis.

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