The big losers on Sunday’s state German Elections were the conservative CDU and business friendly FDP.
The big winners were the center left SPD, the far left party and the green party.
As before, with center left and far left parties gaining share of the votes in germany you have to ask whether this vote was a boast or defeat for euro integration. Imo, it signals more monetary lose conditions and an increased likely hood of euro integration.The finance ministers of all these leftist parties believe in ‘progressive’ keynesian policies and higher taxes for corporates and the rich. They are all firmly wedded to the principle of supply side push. (This mirrors what is also occurring in France ie a shift to the left. Europe’s core is moving left not right. This has significant investment implications. Cash is always trash under left, progressively minded governments).
http://www.spiegel.de/international/germany/0,1518,784333,00.html
This is a victory for inflation and euro integration despite the headlines you may read in your newspapers.
‘The SPD, the Greens and Die Linke explicitly and robustly support the development of a real economic and political union, including the genuine co-ordination of economic policy, the harmonization of social and tax policy, and the comprehensive regulation of financial markets. In other words, in addition to criticising Angela Merkel’s stance for not being pro-European, their proposals reflect their location on the Left-Right axis and the (more or less) explicit acknowledgment of the failure of the neoliberal paradigm. For the German social democrats in particular this marks a return to their roots: they had called for the establishment of the United States of Europe as early as 1925’.
Ask yourself what are the monetary implications of such a set of ‘progressive’ policies towards a comprehensive welfare state system. The implications are very clear for those with a minor understanding of re-emerging power of the German progressives.
Rich
(5 votes, average: 4.80 out of 5)
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