Showing posts with label Angela Merkel. Show all posts
Showing posts with label Angela Merkel. Show all posts

Monday, September 7, 2026

The AfD Group Surges in a Regional Election in the E.U. State of Germany

Both the U.S. and E.U. mandate that their respective states be republics (i.e., representative democracies), and thus assuming an autocratic government is prohibited. When the governor of the state of Hungary restricted freedom of the press and judicial independence, the E.U. pushed back until Viktor Orbán lost reelection in 2026. Later that year, when the AfD (far right) group won in a region of the state of Germany, the state’s chancellor publicly voiced concern regarding the group’s attitude toward democracy. Viewing the governor as the bastion of constraint on such a trend ignores the E.U. entirely and treats Germany as still fully sovereign rather than being a state in the federal Union, which also has authority to protect democracy even if that authority was shown to be too weak with regard to Orbán’s rule in Hungary.

In early September, 2026, the “anti-immigration AfD group won the election in the Saxony-Anhalt region of the state of Germany “by a landslide, taking 43.8% of the vote. The CDU came in a distant second with 17.2%.”[1] Compared with the region’s election in 2021 “the AfD more than doubled its vote share, while the CDU saw its share halved.”[2] Merkel’s decision to open the state to immigrants from vastly different cultures than that of the E.U. had come home to roust, electorally; she could have predicted such a counter-reaction, given the cultural conservativism that has been so very salient in that E.U. state, as well as in Austria, another socially conservative state.

In the regional election, “60% of voters had chosen parties that call democracy into question.”[3] Merz, the state’s governor, said at the time that his state “needs fundamental reforms,” and yet he had hardly been a charismatic leader for substantial change.[4] Indeed, he lamented “the government’s failure to communicate policies in a sufficiently emotive and compelling way.”[5] Such policies hardly constituted “fundamental reforms” even though he “saw a society ‘longing for disruption’ and ‘fundamental change.’”[6] The victory of the AfD group doubtlessly had something to do with the built-up pressure from the dissatisfaction. Looking to the state government as a check against excesses in the AfD group can thus be regarded as problematic. Fortunately, Germany is an E.U. state. That a state in a federal system can itself have a federal system is perfectly consistent with historical federal theory, as discussed theoretically by Althusius, interestingly a German jurisprud, in his treatise, Political Digest (1603). Just because a state has a federal system does not mean that it cannot itself be a state in a federal system. Large U.S. states that are internally diverse in their respective regions could benefit by this point, as such states could benefit from adopting federal systems. Texas, New York, Illinois, and most obviously California could benefit greatly.

In analyzing the victory of the AfD group, I am deliberately taking a federal perspective from the vantage point of the E.U., which like its states is semi-sovereign politically, and thus constitutes a “political union” (of the same genus as the United States). Both unions represent “empire-scale” federal republics of republics—wheels within a wheel, to borrow from Kenneth Wheare’s text, Federal Government. To be viable, all of the wheels must be democratic rather than autocratic; otherwise, states without political freedom would tend to unilaterally nullify federal law from being valid within such states.

Once federal law is ignored, a federal union of state is in real trouble because the practice could easily spread to become a norm. This is doubtless why U.S. President Jackson sent troops to South Carolina in 1831 after its government enacted a law nullifying any federal law contrary to the state’s political or economic interests. The issue then was an agricultural tariff that had recently been enacted by the federal government. Jackson got both the tariff and the Nullification Act revoked, and thus safeguarded the system of federalism.

The E.U. too has sought to counter efforts by states to ignore federal law, and to eclipse democracy and freedom of the press and judiciary as well. Although Merz emphasized after the regional election that the AfD group would “have to follow the line set” by the state government, he omitted the fact that the group would also have to follow the line set by the European Union. This is a significant omission, especially given the governor’s political weakness at the state level. Just as the Commission withheld federal funds from the state of Hungary during Orbán’s autocratic rule, such funds would be held back from a state governed by the AfD were that group to eviscerate rule of law, freedom of the press, and judicial independence there. To be sure, the (excessive) involvement of the state governments at the federal level via the European Council and the Council of Ministers and the state veto itself enervate the enforcement by the Commission, but this is not to say that the state governments are the only ones capable of safeguarding democracy. State officials ignore the E.U. at their own peril; such a stance, which in American parlance has been referred to as “state rights” and in European terms is commonly known as the “Euroskeptic” ideology, needlessly opens Europe up to dictatorship once again. We need only look back less than a century to see examples of fascist dictatorship in what would become the European Union. Even in the twenty-first century, Europeans can hardly afford to ignore the E.U.’s safeguards even though they are needlessly weak in enforcement due to the state veto mechanism (i.e., a conflict of interest) at the federal level.



1. Laura Freischmann, “Merz ‘Deeply Shocked’ After Major Afd Win in Saxony-Ahhalt,” Euronews.com 7 September, 2026.
2. Ibid.
3. Ibid.
4. Ibid.
5. Ibid.
6. Ibid.

Saturday, March 23, 2019

Structural Reform and Economic Sustenance in European Austerity

Speaking at the World Economic Forum in Davos, Switzerland on January 25, 2013, Mario Draghi, president of the European Central Bank(ECB), said the bank’s program to buy the bonds of heavily indebted E.U. states had been “very helpful” in reducing the perception that the euro was on the verge of collapse. He also pointed to the structural reforms that heavily indebted states had enacted as “now bearing fruit.”[1] He urged those governments to continue to implement structural reforms so those states could take advantage of the ECB’s low interest rates and easy credit to banks. In short, the strategy of the ECB was to use monetary policy as leverage for long-term-oriented structural reforms at the state level. Political risk analysts listening to the central bank official likely came away with a more optimistic stance on the long term prospects for the E.U. economy.
Even though the progress achieved already on the debt crisis provided “light at the end of the tunnel,” the matter of structural reforms at the state level was subject to politics and was thus more uncertain. Also, economic conditions could worsen, hence making it politically and economically more difficult to make the needed structural changes. Chancellor Angela Merkel of the state of Germany warned the governors of heavily-indebted states such as Greece and Spain against the impulse to reduce the pace of structural reform in the face of economic stagnation. She pointed to the record unemployment numbers announced in Spain on January 24, 2013 as fodder for the anti-austerity political forces there. She further observed that “experience tells us that often pressure is required to enable structural reform.” The obstacles could have come from political officials or bureaucrats at the state level, and even from the people, upset at the economic austerity cut-backs hitting themselves and even the poor who depend on funding for sustenance. Advocates for those people were doubtlessly contesting that survival in the short run should not be sacrificed for long-term structural reform. 
Interestingly, making a qualitative (i.e., difference in kind) distinction between government programs that keep people alive on a daily basis and all the other budget items could actually permit more budget cutting because so much would be found to be subject to cuts without risking lives. In the U.S. at least, the qualitative difference has typically been made between domestic and military spending. This dichotomy has enabled huge increases to military programs even as cuts to food assistance have been proposed. Of course, the unemployment caused by a cancelled defense contract could put people in danger of losing their house or going without food. However, such individuals would be covered by the continuance of the programs providing sustenance as long as they were held apart from the other spending categories. Having an indirect effect on sustenance, such as military contracts can, does not render a particular budget item itself in the category of vital programs for sustenance, such as building more halfway houses for the mentally ill who are homeless.  This reflects the American culture more, wherein much more is deemed conditional than in Europe, where the principle of solidarity has been and is still more salient politically.
In short, long-term fiscal reform need not be at the expense of people eating and having shelter as well as medical care. Based on the firm foundation of human rights, programs primarily geared to sustenance can be isolated and protected such that the structural reform can be implemented more smoothly. Buffering sustenance programs from the massive cuts everywhere else would significantly reduce the vehemence of the protests and soothe the path of structural reform by isolating the entrenched officials and bureaucrats as the only primary obstructionists. 

See also Essays on the E.U. Political Economy, available at Amazon.  

1. “Davos: ECB’s Draghi Says ‘Real’ Economy Still Stagnant,” Deutsche Welle, January 25, 2013.

Sunday, May 13, 2012

Tsipras against Austerity: Merkel Bends on Stimulus

Under pressure to join a unity government in Greece with the New Democracy and Socialist parties, Tsipras of a “radical left” Syriza party was holding firm as of May 13, 2012. Even as the resulting prospect of new elections and a possible reneging on the agreement by Greece, there is something to admire in Tsipras’ position.

Greek president Karolos Papoulias meeting with leaders of the three main parties (Tsipras on right) AP


The full essay is in Essays on the E.U. Political Economy, available in print and as an ebook at Amazon.

Tuesday, May 8, 2012

Anti-Austerity in Greek Government

The Socialists and then the New Democracy Party told Greeks that sacrifices were necessary to avert default on the state’s debt. This position came at a high political cost on May 6, 2012, when both parties lost seats in the state’s legislative election. “The established parties collapsed — they had too much pressure from Berlin and Brussels and the I.M.F.,” said Nikos Xydakis, an newspaper editor and a political commentator, referring to Greece’s foreign lenders.[1] In other words, the leaders of the two mainstream Greek parties sold out their compatriots, having caved in to ultimatums from Merkel operating at the E.U. level. “In a meeting with President Karolos Papoulias, the leader of the leftist party, Alexis Tsipras, ridiculed the leaders of the two main parties whose coalition lost its majority in the parliamentary elections.”[2] Tsipras added that his party would not be forming a government with either party. The New Democracy Party had been unable to form a government in the wake of the election, so it was then Tsipras’ turn to try.

Alexis Tsipras  and Greek President Papoulias   NYT/Kostas Tsironis
The full essay is in Essays on the E.U. Political Economy, available in print and as an ebook at Amazon.

1.. Rachel Donadio and Niki Kitsantonis, “Greek Leftists Rule Out Coalition with Incumbents,” The New York Times, May 8, 2012.
2. Ibid.

Monday, May 7, 2012

Merkel’s Fiscal Box in the E.U. Debt Crisis

Germany was ruling out any substantive shift in its approach to Europe's debt crisis despite a rising chorus of opposition to Berlin's austerity policies that reached a crescendo in the elections in Greece and France on May 6, 2012. On the following day, Merkel “rejected the notion that Europe was on the brink of a major policy shift after Socialist Francois Hollande defeated her fellow conservative Nicolas Sarkozy and Greek voters punished ruling parties who slashed spending to secure a foreign bailout. . . . Merkel herself made clear that, while there was scope to discuss tactics, the overall strategy EU leaders committed to by agreeing a compact on fiscal consolidation was ‘not negotiable.’”[1] That seems a bit presumptuous, considering that the “fiscal pact” had yet to be ratified in enough of the states to go into effect.


The full essay is in Essays on the E.U. Political Economy, available in print and as an ebook at Amazon.


1. Noah Barkin and Stephen Brown, “Germany Austerity Policies: Berlin Unmoved by Votes in France, Germany,” The Huffington Post, May 7, 2012.

Friday, March 9, 2012

A Rigid Refusal to Renegotiate: Blaming the Greeks

As Greek party leaders struggled to put together a government in May 2012 after a splintering election, a major (and contentious) issue was whether to demand a renegotiation of the bailout agreement. Alexis Tsipras, leader of the Coalition of the Radical Left known as Syriza (which made large gains in the election), was declaring the agreement null and void given the mandate implied by the gains made on the far right and left (both being opposed to the austerity program). Tsipras believed he “had changed the debate to the point that the formerly dominant parties that had signed the loan agreement were . . .  indicating they might agree to demand it be renegotiated.”[1] His statements were enough to prompt a firm Nein! from Angela Merkel in Berlin and a related “tightening of the screws” from the committee of the European Financial Stability Facility.


The full essay is at Essays on the E.U. Political Economy, available in print and as an ebook at Amazon.


1. Rachel Donadio and Niki Kitsantonis, “ContinuingLeadership Deadlock in Greece as Its Lenders Watch and Wait,” The New York Times, May 9, 2012.

Thursday, December 15, 2011

Leadership in Europe: A Recipe for Reducing Legal Uncertainty

Concerning the legal environment of business, the lawyers who teach as full-time instructors in American business schools affirm that managers would rather have a challenging environment that they know than one that is characterized by headlines such as, “Legal Uncertainty Imperils EU Agreement.” At the E.U.’s parliament, which represents the E.U.’s citizens, the president of the European Council, Herman Van Rompuy, said in the wake of the agreement, “An intergovernmental treaty was not my first preference, nor that of . . . most of the member states . . . It will not be easy, also legally speaking. I count on everybody to be constructive, bearing in mind what is at stake.”[1] Investors were “largely dismissive” of the Council meeting  at which the extra-E.U. agreement on strengthening the enforcement mechanism of state deficit and debt limits had been reached at the end of the previous week. Alan Brown, chief investment officer at Schroders Investment Management, which had at the time almost $300 billion under management, said of the results of the Council meeting, “Yes, it was what I expected, and yes, I was disappointed.”[2] Schroders was backing up this view with a modest bet against the euro. Relatedly, Barclays was forecasting the currency to fall from $1.30 on December 13, 2011 to $1.25 by June 2012. Besides the pessimism on the “intergovernmental treaty” as well as a possible increase of funds from the $500 billion cap on the agenda at a Council meeting in March 2012, the sheer uncertainty described by Van Rompuy lowers the value of the announced agreement and the outlook concerning the viability of the euro as well as the E.U. itself.

Federalismus in Action: Jose Barosso of the E.U. Commission and Angela Merkel of Germany / NYT

The full essay is at "Essays on the E.U. Political Economy," available at Amazon.


1. Steven Erlanger and Stephen Castle, “Europe United, Minus One: A Firm German Imprint on an E.U. Transformed,” International Herald Tribune, December 10-11, 2011. 
2. Matina Stevis, Frances Robinson, and Marcin Sobczyk, “Legal Uncertainty Imperils EU Agreement,” The Wall Street Journal, December 14, 2011; Tom Lauricella, “Euro at 11-Month Low,” The Wall Street Journal, December 14, 2011.

Thursday, November 10, 2011

Europe's Political Elite Takes on Popular Sovereignty in Greece

As October 2011 was coming to an end, George Papandreou, prime minister of Greece, “stunned Europe by announcing a referendum” on the latest bailout from the E.U. and set the vote for January 2012. Shocked E.U. leaders were doubtless shaking their heads with a mix of incredulity and frustration, as they had not even been consulted on the prime minister’s proposal. Meanwhile, the yields on Italy’s bonds continued to increase, as did the spread between German and Greek 10-year bonds. The world was left to whether the Greek voters would reject their government’s austerity plans and, relatedly, whether the E.U. would augment its bailout of the state as per the agreement reached only days before the prime minister’s announcement.

 Greek Prime Minister George Papandreou announcing the referendum    AP


The full essay is at "Essays on the E.U. Political Economy," available at Amazon.

Tuesday, August 30, 2011

Angela Merkel: Leading Germany in the E.U.

In the E.U. state of Germany, Angela Merkel had her work cut out for her in getting her coalition to carry the German House, or Bundestag. In vesting the debt bailout fund with powers had been at the state level. Conservatives feared the deal would “open to the door to relinquishing more sovereignty to the European Union.”[1] Also, the legislators in her Free/Christian Democrat coalition were having trouble justifying the increased cost to their constituents of the expanded fund even though it is geared to keeping the E.U. debt-loads at the state level from spinning out of control—meaning at the expense of the German economy. Economically, it can be argued that expanding the E.U.’s bailout fun is in the economic interest of the state of Germany and its residents.


The full essay is at "Essays on the E.U. Political Economy," available at Amazon.

1. Vanessa Fuhrmans, “Merkel Faces Test OverBailout Fund,” The Wall Street Journal, August 30, 2011.