This is important as legislation created in the lower house can get stomped up and die in the upper house. As such, if Merkel ever wanted to pass anything, she would need complicit support from the upper house. There are many in the SPD and in the Green party that would gasp at such a coalition, but the truth is that there is little if any real differences among the three parties, save possibly on the issue of taxes. The SPD campaigned on a plan to raise taxes on upper-income Germans, while the CDU/CSU categorically rejected that idea. But Germany’s rich could easily absorb a slight increase in their taxes, and the CDU/CSU could be persuaded to support such an initiative if they were assured that proceeds would be earmarked for debt repayment. Germany, while a pillar of economic strength, has a 2.1 trillion-euro debt load, equal to 90% of GDP, so any attempt to lower that bill would be welcome. As for the Greens, Merkel has already demonstrated that she is on their side when it comes to the environment by embracing an extremely progressive environmental policy. She supported the shutting down of the nation’s nuclear industry and has mandated that 35% of the nation’s energy come from renewable resources by 2015. Those aren’t centrist environmental policies, so the Greens should have little to fear in joining a coalition with Merkel. If the Greens were to get the environmental cabinet post, they would consider that a true win. It could take up to two months for Merkel to hammer out an agreement with her new coalition partner(s). Whatever she decides will be watched intently by the markets as her decision will have major consequences to that of Europe. As the eurozone’s largest economy, Germany has the ability and the responsibility to lead the eurozone, a position that Merkel has been reluctant to take up given the political situation back in Berlin. With peace finally attained at home through a grand coalition with the Greens and SPD, Merkel can take the lead on a number of initiatives to help secure the euro and bring the union closer together.
Next for Germany’s Merkel: Fix Europe
Monti who stepped up as Italy’s “technocrat” prime minister after the country’s economic instability forced the resignation of Silvio Berlusconi, told Quest his greater concern was the prospect of a two class Europe. The eurozone crisis has generated a backlash against integration Mario Monti “The crisis has been managed very, very poorly in my view as regards the psychology, and the eurozone crisis has generated a backlash against integration,” Monti said. This “psychological conflict of north versus south and vice versa, this needs to be tackled.” Trichet echoed the concerns, telling Quest such a split was “absolutely unacceptable.” “If we had, in the past, fully implemented the rules including the stability and growth pact, and what was badly needed — control and monitoring of competitiveness — we wouldn’t have two class Europe,” he said. Almunia, meanwhile, said his fear was that “after the crisis those who were, at the beginning of this crisis, at the bottom, would continue to be at the bottom.” Is there an alternative for Germany? However, he added, that would not happen if the countries in recession “do what they have started to do and ….continue to do [it].” Can Italy improve competitiveness? Germany’s emergence as power player Spain’s export bonanza Germany emerged as an economic force after labor reforms were implemented under its then-chancellor Gerhard Schroder. Now, its export-led economy drives the 17-nation eurozone, with Chancellor Angela Merkel — battling for third term in this weekend’s federal elections — a central figure during Europe’s crisis. Merkel’s popularity remains high in Germany, and her party, the Christian Democratic Union, is expected to gain the most votes. Merkel’s leadership during the crisis saw her named as the world’s most powerful woman by Forbes three years in a row. Efforts to combat the crisis included the implementation of bailout funds, closer fiscal cooperation and austerity measures. When asked if Germany is taking over Europe, Monti replied that the continent’s largest economy would have more dominance if it had retained the deutsche mark “because they would then become the only relevant monetary policy power in Europe.” Countries that went too far too rapidly, had bubbles Jean-Claude Trichet As it is, Germany remains shackled to the weaker countries in the euro, many of which continue to struggle with spiralling unemployment, high national debts and growing political instability.
Europe fractures even as it shakes off recession
That could be a sign investors are finally warming to low valuations on developing world equities, something they passed on earlier this year. Russia, a market that is often trades at a discount to the MSCI Emerging Markets Index, is 57.4% of GURs weight. Poland, a steady performer even in a volatile year for emerging markets, is another 15.3% of GURs geographic exposure. [ Zloty Helps Poland ETFs Stand Strong] Turkey, which has been decimated by a sagging currency and political volatility, is GURs second-largest country weight at 19.7%. @yahoofinance on Twitter, become a fan on Facebook Related Content Chart Your most recently viewed tickers will automatically show up here if you type a ticker in the “Enter symbol/company” at the bottom of this module. You need to enable your browser cookies to view your most recent quotes. Search for share prices Terms Quotes are real-time for NASDAQ, NYSE, and NYSEAmex when available. See also delay times for other exchanges . Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page . Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes. All information provided “as is” for informational purposes only, not intended for trading purposes or advice.
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