The Chancellor is not for Experiments!

The lowest rate of unemployment in the last 2 decades could be the real reason which helped Ms Angela Merkal to win the current elections as Chancellor of Germany for the consecutive third term. Her party, Christian Democratic Union won 41.5% votes against 25.7% votes of Social Democrats led by Mr Peer Steinbruck. But she is still in need of a coalition since she doesn’t have an absolute majority.

The Chancellor seem to be the pet of Germans since she satisfied them with her strict measures she took on Euro-crisis, Libyan war, Syrian uprising. Her “ NO WAR” attitude was visible when she send a small troup of 8000 to Afgan rejecting the criticism of her allies and to keep an ok bilateral relationship with the US.

She has shown her commitment towards her country by not giving away for the bailout demands of other European countries like Greek, Spain and Cyprus. She called for strict austerity measures in these countries which truly affected not only eurozone but other countries as well.

Ms Merkal holds the blame for increased burden on these countries but her measures are for the future not for the present. That’s her view. For eg the merchandise exports from India to Europe declined from $42.7 billion in 2011 to $37.3 billion in 2012. But the current account in eurozone got a growth from $100 billion deficit to a $300 billion surplus.

There are worries also. The amount of the debt Germany has is € 2.1 trillion. This has affected the growth of many federal states, municipalities and cities. The other main issues which can be a trouble for her government are:


Debt Sharing

The idea of euro bonds under which 17 European countries share their debt will be rejected by the new government. Germany may not be interested in buying new bonds which is capable to make poor countries to borrow cheaply. Greens Party , the supposed coalition partner is in favor of buying bonds and this can create a tension inside the ministry.

Growth

Ms Merkal already carrying the blame on her for not funding crisis hit countries like Spain, Greece and Cyprus. The European Central Bank has already designed few
measures to help these countries.

Troubled Banks

Zombie banks all over the Europe need restructuring and setting up European Union wide agency was not appreciated by German Finance Minister Mr Wolfgang Schaeuble till now. This will be a crucial issue during the current term.

Third Greek Bailout

Greece is in need of 11 billion euros to cope up with unemployment and related issues. The old 2 bailouts were about 240 billion euros.

Throughout the next four years she will be scrutinized for ger unfriendly attitude to other countries and specifically towards the eurozone. But her loss in the lower house forces her to be in a coalition with rivals who will force her to keep a friendly rapport with the neighbourhood.