Why Austria is VERY worried about the German elections We need discipline again!

Germany: Next chancellor will be ‘compromise’ says Parry

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After 16 years as Germany’s Chancellor, Angela Merkel will be stepping down ahead of the 2021 German federal election this month. But hopes of building on Ms Merkel’s legacy hang in the balance. Ms Merkel’s Christian Democratic Union (CDU) is losing momentum in the polls, and a coalition led by Olaf Scholz of the rival left-wing Social Democratic Party (SPD) appears likely at this juncture.

The German federal election is expected to take place on September 26, 2021.

All of Germany’s main political parties will be hoping to win as many seats as possible in what will be the 20th Bundestag parliament.

But the CDU could see its four-term hold on power come to an end, based on the latest polls.

The conservative CDU candidate, Armin Laschet, has been lagging behind the SPD in polling data for several weeks.

The latest Insa poll for Bild am Sonntag put Mr Scholz’s SPD at 25 percent, and while Mr Laschet’s CDU/CSU bloc only polled at 20 percent.

Based on the current polling data, the SPD looks likely to enter into a coalition with the Greens, who polled with 16 percent in the same survey.

Mr Scholz has already outlined his preference to rule in power with the Greens, as both parties share similar pledges.

However, the Greens and the SPD may not be able to draw enough support to govern Germany as a two-party coalition.

Options to join the coalition include the FDP, which polled at 13 percent, or Linke, which polled at seven percent.

Germany’s far-right party, AfD, polled at 12 percent, but all of Germany’s political parties have ruled out any alliance with the group.

On Thursday, Ms Merkel acknowledged her party and its partnership with the Christian Social Union in Bavaria (CSU) faces a struggle to remain in power after this election.

She said: “That after 16 years one does not automatically … return to the chancellery, that was clear to everyone in the CDU and CSU.”

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Although Mr Scholz and the SPD appear to be growing in popularity at home, Germany’s foreign allies seem to be sceptical of a German left-wing government.

Germany has a close relationship with Austria, but Austria’s Chancellor Sebastian Kurz has warned that a left-wing government in Germany does not serve the interests of Austria and Europe as a whole.

Mr Kurz said: “We need discipline again and not a debt union and … I would like to wish Armin Laschet all the best and we hope very much that there will continue to be a good Christian Democratic leadership in Germany.”

Mr Kurz governs Austria as leader of the right-wing and Christian-democratic political party, the Austrian People’s Party.

So arguably, Austria’s current government would align closely with a continuation of a CDU-led coalition in Germany.

In his time as Germany’s finance minister, he oversaw a comprehensive spending programme to help Germany cope financially amid the COVID-19 pandemic.

And it may be that Mr Scholz’s future fiscal plans are not favoured by Mr Kurz either, with some critics arguing Mr Scholz is preparing for a spending spree should he win the election.

Rather than a more conservative spending outlook post-COVID-19, the SPD and the Greens both want to raise the national minimum wage to €12 per hour from €9.60.

Both parties have also expressed their intentions to increase taxes for the super-rich with a wealth tax.

Mr Scholz has also expressed interest in reforming Germany’s welfare programme, as well as building 400,000 new homes every year.

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