Germany’s opposition and the euro crisis by Katinka Barysch
Although Germany’s next general election is not scheduled until October 2013, the campaign started in earnest on September 28th 2012. On that day, the opposition Social Democrats (SPD) chose Peer Steinbrück as their candidate for the chancellorship, dismissing the other two members of the party’s leadership trio. Steinbrück promises not only more social justice at home but also quicker and more sustainable solutions to the euro crisis: less pain for Greece and Spain, a bigger rescue fund, a genuine banking union and deeper political integration. Could a Steinbrück-led government, together with France’s Socialist President François Hollande, offer a pro-growth alternative to Merkel’s austerity-focused euro strategy? The SPD likes to portray itself as the more proEuropean of the mainstream parties. It could hardly call for more European solidarity and at the same time vote against eurozone bail-outs. Since 2010, therefore, the SPD has voted alongside Merkel’s Christian Democrats (CDU) in almost all important decisions on the euro. In recent votes, for example on the fiscal compact, Merkel could not muster a clear majority among her own – increasingly eurosceptic – MPs. She had to rely on the support of the SPD and the Greens instead.
Photograph © Deutscher Bundestag/ phototek/ Thomas Trutschel
This leaves the SPD in a bind since voters do not believe that it offers a distinct alternative to Merkel’s euro strategy. Nor does the SPD dare to divert too much from Merkel’s chosen course, of which two-thirds of voters whole-heartedly approve. When SPD politicians criticise Merkel’s euro policies, they focus on the process – foot-
dragging, U-turns, backroom dealings and lack of honesty – not the substance. They call for more solidarity and growth but insist that they, too, would demand tough decisions on austerity and reforms from the countries concerned. They effectively promise to do almost the same as Merkel, only somehow better. Steinbrück knows that on the subject of the euro, Merkel is unassailable in Germany. He will therefore build his election campaign around other topics, notably banking and social justice. However, his calls for alleviating poverty sound feeble since Merkel’s government has come out in favour of minimum wages and extra money for childcare and poor pensioners. Tougher regulation of financial markets should be a sure vote-winner in a country where most