Tech Support Stories

  • Subscribe to our RSS feed.
  • Twitter
  • StumbleUpon
  • Reddit
  • Facebook
  • Digg

Friday, 6 September 2013

"Grand Coalition" Led by Merkel, Not Going to Happen; Expect a Shocker in Germany Election

Posted on 10:42 by Unknown
I am going to stick my neck out with a pair of predictions:

  1. Forget about a "Grand Coalition" led by Merkel. It's not going to happen.
  2. The AfD anti-euro party will be in the next German parliament.

AfD had been polling around 2.5%. However, in the wake of Finance Minister Wolfgang Schäuble (CDU) stating a need for more aid for Greece, one pollster has AfD at 4%.

Reader Bernd from Germany (not AfD party leader Bernd Lucke) says the 4% figure is significant. If a party shows four percent in polls, potential voters are drawn in because they no longer fear their vote will be "lost", due to the 5% threshold.

The election is on September 22. Yet 30 percent of voters are still undecided.

Coalition Possibilities

  1. "Same" CDU/CSU + FDP
  2. "Grand Coalition" CDU + SPD led by Merkel
  3. "Grand Coalition" CDU + SPD led by someone else
  4. "Red Green Coalition" SPD + Grüne (Greens) + DieLinke
  5. "CDU/CSU+AfD Coalition" 

IF FDP can reach 5% of the vote, it is possible the same yellow-black coalition (CDU/CSU+FDP) rules as today. If FDP fails to reach 5%, then several alternate scenarios come into play:

There has been no talk at all of possibility number five above. Yet, if AfD can gather 6-7% (a number I think is possible), then there could be a coalition that includes AfD.

None of the "Grand Coalitions" seem stable.

Reader Bernd Comments
  • FDP does not make (or barely makes) the 5% margin in two polls
  • AfD is at 4% in at least one poll
  • 35% of voters are undecided, so much movement to come
  • Recent momentum has been away from CDU
  • In the "undecided" voter column, Steinbrück leads 44% over Merkel 38%.
  • A big problem for CDU and Merkel is to get their supporters to vote. CDU and Merkel followers are deeply convinced that Merkel has such a massive lead, that there is no cause for fear.
  • The State elections in Bavaria are held one week before federal elections. In Bavaria, Steinbrück's SPD will be trounced. Less than 20% of popular votes are a real possibility and might put a serious damper on the mood for the SPD in the last week of federal campaigning.
  • Die Linke is stable. However, many "Die Linke" voters are probably hidden in the undecided block. I would give them more than 9%


After reading, analyzing and comparing statistics, figures and the whole nine yards, my latest prediction is as follows:

  • CDU/CSU: 37%
  • SPD: 24%
  • Grüne: 11%
  • Die Linke: 10%
  • AfD: 06%
  • FDP: 05%
  • Total: 94%
  • Lost votes due to 5% threshold: 6%


I have the most serious difficulty to assess FDP. It is really  possible, they might not make it into Parliament. Reason: most Germans highly prefer a coalition between CDU/CSU and SPD over the current one of CDU/CSU and FDP.

Such being the case, strategic voters might support CDU directly, rather than giving their votes to FDP (remember, Germans have two votes, so "strategic splitting" is common).

The real dark horse is the AfD.

AfD is perceived to be positioned firmly in the center-right of the German political spectrum.

In reality, this is not so. AfD is more libertarian than right. But who would know the difference in a country, where being called a NAZI has become an every day affair of political opponent bashing.

If FDP and AfD make it into Parliament, a coalition between CDU/CSU/AfD/FDP might be an option for a stable Government. In reality, their positions are a lot closer together, than most people think or perceive.

Mr. Steinbrück will not be part of a "grand coalition".

Clearly, and there can not be any doubt: German voters want a grand coalition, with Mm Merkel as Chancellor and Steinbrück as second in command. Yet, Steinbrück has repeatedly said, again and again, he can only be the "King of Schnitzel" or he will resign as a politician after the campaign. I tend to believe him!

SPD party leader, Mr. Gabriel, may enter a Grand Coalition, but such an arrangement may not be very stable. If SPD goes for such a coalition, it will be the final demise of that party.

Best wishes
Bernd
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Email ThisBlogThis!Share to XShare to FacebookShare to Pinterest
Posted in | No comments
Newer Post Older Post Home

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Popular Posts

  • Workforce, Population, Jobs by Age-Group
    Here are a few demographic-related charts of the workforce, civilian non-institutional population, and jobs, by age-group, from reader Tim W...
  • Is the US Spending Enough on Education?
    Given the constant chatter from the Obama administration and from teachers' unions on the need to spend more for public education, let...
  • Grand Coalition or Grand Discontent, Mistrust and Disrespect? Political Poker Revisited
    After saying "nein" to a grand black-red CDU/CSU + SPD coalition led by CDU (Angela Merkel), SPD party candidate Peer Steinbrück c...
  • Measuring What Didn't Happen: Did Obamacare Cause an Increase in Part-Time Jobs? No Says Ritholtz, and Reuters; Yes, Says Mish
    A friend sent me an article in Reuters today that claims Little evidence yet that Obamacare costing full-time jobs . One in five businesses ...
  • Bill Gross Discusses the "Tipping Point" For Bonds; Does He Miss the Boat?
    Bill Gross did not see this major selloff in bonds coming. He discusses the setup in his recent Investment Outlook called The Tipping Point...
  • Pragmatic Look at the Debt Ceiling Debate; Who Broke Washington?
    My best friend in high school, David Wise, wrote an interesting OpEd for the Baltimore Sun two days ago. I do not agree with all of it, but...
  • El Pais Article Discusses "Liberating Spain from Shackles of the Euro"
    The El Pais Screwdriver Blog openly asks " Are we to Liberate the Euro? " Here is a Mish-modified translation: Today Spain has re...
  • Explosive Video on Ending Fractional Reserve Lending and Bank Corruption at Philadelphia Fed Conference
    At an economic conference at the Philadelphia Fed, academics gathered to discuss fixing the banking system, including ending fractional rese...
  • Mish Video: Troubled Currencies (And There are Lots of Them), Gold, Bernanke, Carry Trades, Bubbles
    I was on Prime Interest (formerly Capital Account) with Bob English on Tuesday, August 20. We discussed troubled currencies, the Indian Rupe...
  • Dark Vision for Jobs: Jobless Future? Is It Different This Time?
    Moments ago, I responded to a reader James from the UK regarding automation on farms. James commented that he only need one laborer where de...

Blog Archive

  • ▼  2013 (500)
    • ►  October (59)
    • ▼  September (87)
      • Meaningless Partial Government Shutdown in Progres...
      • Strawberry Fields Forever; Is a Higher Minimum Wag...
      • Record $217 Billion Corporate Bond Issuance in Sep...
      • Berlusconi Faces Party Revolt; Collapse of Italian...
      • Spain's Retail Sales Fall 4.2%, 38 Consecutive Neg...
      • More Government Shutdown Hype
      • Giant Deadly Hornets Kill Dozens In China; Venom D...
      • Is the U.S. Headed in the Right Direction?
      • Future of Medicine: Meet Sedasys - Your New Robot ...
      • The "Right Value" of the Indian Rupee
      • Government Shutdown is a Fantastic Idea
      • Bank Robbers and Middle-Class Tax Hikes
      • IMF Proposes Eurozone Fiscal Union, Banking Union,...
      • Italy on Verge of Downgrade to Junk; Silvio Berlus...
      • Bulls and Bears Debate China: Property Bubble Expa...
      • Unsold Merchandise Piles Up at Wal-Mart; Cuts in O...
      • Economic Idiocy: California Hikes Minimum Wage to ...
      • "No Tapering, More QE, Serious Housing Slowdown" s...
      • Unhappy Anniversary: Illinois Overtakes California...
      • Will Republicans Please Put Up Or Shut Up? (I Expe...
      • Income-Wise, What Percentage of People are Worse O...
      • Reader Question: "How Can One Calculate True Price...
      • Illusion of Prosperity: Deflating the American Dre...
      • Europe Hooked on Easy Money Too: ECB President Dra...
      • Reflections on Conspiracy Theories and Sensible Ac...
      • May Be a "Grand Coalition" Nightmare After All
      • FDP Out; Possible CDU Outright Majority; No Grand ...
      • Is Risk-Free Banking Possible? What About Fraction...
      • What Colleges Have the Highest Tuition? How To Sav...
      • Target to Hire 18,000 Fewer Seasonal Workers This ...
      • Mortgage Delinquencies Hit New Record High In Spai...
      • Scranton, Pennsylvania Careens Towards Bankruptcy;...
      • Grand Fantasy
      • Attack of the "Digger Bees"
      • The Morning After; Price Discovery is Zero; PUT on...
      • Purposeful Class Warfare? Breathing Room for Rupee...
      • "Bubbles Ben to be Replaced by Calamity Janet"
      • Fed Bizarro World; One-Sided Risk Assessment; The ...
      • So, It's No Tapering After All; Reaction is Telling
      • Spain on Track to Meet Budget Targets Says Economy...
      • Closer Scrutiny of Participation Rates by Sex and Age
      • Fiscal Crisis in Chicago: Pensions 31% Funded, Moo...
      • Grand Coalition or Grand Discontent, Mistrust and ...
      • M1 Money Supply vs. Real GDP
      • Kenosha Teachers' Union Decertified in 63-37% Vote...
      • CSU Receives 49% in Bavaria State Election; Assess...
      • Yellen It Is; Gold Soars; Summers Drops Out; Yelle...
      • 8,500 Sq Ft Home Faces Wrecking Ball to Build 9,09...
      • Software Robots Eliminate 94.7% of Jobs Needed for...
      • Want to Get on the Disability Gravy Train? There's...
      • Political Poker in Germany; Grand Coalition Possib...
      • Men in Black Return to Spain; ECB Complains of Too...
      • India Housing Bubble Bursts; Panic Coming Next
      • Where are the Jobs? Who Has Them? Who's Likely to ...
      • Help Obama Kickstart World War III; He Clearly Nee...
      • Near-Record 20% of Americans Struggle to Afford Fo...
      • 94.4% of Crisis Aid Went to the Financial Sector; ...
      • Japan "Wins" 2020 Olympics: Final Nail in Yen Coffin?
      • AFL-CIO Lays Out "Laundry List" of Formal Complain...
      • Obamacare Fraud Free-For-All Now Underway; "ObamaM...
      • States Have an Incentive to Promote (Not Stop) Dis...
      • Short Translation of Obama's Speech: "Flip Flop"; ...
      • Latest Polls Not Looking Good For Merkel, 12 Days ...
      • Obama Supporters Sign "Karl Marx for President" Pe...
      • Does Your Job Require a College Degree? Should It?
      • U.S. Going to Kill Syrians to Show Syria that Kill...
      • Just How Distorted is the U.S. Unemployment Rate N...
      • "If Americans Could Read Classified Documents They...
      • US Economic Activity Poised to Soar?
      • Hate Your Commute Now? It's Going to Get Worse
      • End of U.S. Imperium—Finally!? Obama About to Suff...
      • The Dick Cheney-Syria Oil Connection
      • Change of Heart: The Case for Sending Personnel to...
      • "Grand Coalition" Led by Merkel, Not Going to Happ...
      • Establishment Survey: +169K Jobs, June and July Re...
      • Gallup Says Seasonally-Adjusted Unemployment Climb...
      • Is the Selloff in Treasuries Overdone?
      • Separating Politics and War From Oil and the Economy
      • No Progress for Long-Term Unemployed; Ten Reasons ...
      • McCain Proposes Military Aid to Al Qaeda; Mideast ...
      • Warmongers Unite (As They Always Do); Boehner Cave...
      • Future of Education is At Hand: Online, Accredited...
      • Exploring the Impossible: India Seeks to Expand Tr...
      • DeLong-in-Wonderland
      • India Manufacturing PMI Contracts for First Time S...
      • India in Serious Trouble (and Gold at the Heart of...
      • Terrorists Won the War on Terror; 74% of Pakistani...
    • ►  August (83)
    • ►  July (82)
    • ►  June (70)
    • ►  May (82)
    • ►  April (37)
Powered by Blogger.

About Me

Unknown
View my complete profile