Dull but worthy Merkel needs to up her game

Chancellor Angela Merkel may be favourite to win Germany's election. But she needs to energise her campaign.

Emily Hohler
By
published
in Features

862-merkel-634

Angela Merkel is favourite to win the election
(Image credit: 2017 Getty Images)

Barring an "extreme shock", Chancellor Angela Merkel looks set to win Germany's federal election on 24 September, says Stefan Wagstyl in the FT. That would give her a fourth term and cement her position as "the EU's top politician and a force for international cooperation in a world buffeted by political crises and a surge in nationalism". As Helmut Jung, consultant at the GMS polling agency, put it, the Germans are reluctant "to change their captain in a storm".

Unfortunately, however, her "soporific" election campaign reflects the stultifying complacency of the political establishment as a whole, says WirtschaftsWoche. "We've never had it so good, so there's practically nothing we need to do" is the tacit consensus. Unemployment at a 36-year low of 5.6%; a balanced budget; record tax receipts and exports running at €3.5bn a day. But take a closer look, and the picture is less rosy. Germany suffers from a housing shortage, crumbling infrastructure and a business community that is "sleeping through the digital revolution". Then there are the shrinking wages of the bottom 40%, an ageing population that will soon act as a brake on economic growth, suffocating red tape and rising carbon emissions, says The Economist.

Merkel "bears a good bit of the blame for all this". In her next and possibly last term, she must do far more to prepare Germany for the future. She could use Germany's budget surplus (€26bn and rising) to invest in "physical and human capital". She should seek advice from French president Emmanuel Macron on developing high-tech industries, and burnish Germany's foreign-policy credentials by "pressing on" towards the Nato target for military spending.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Nor will Germany ensure its future prosperity unless it helps "Europe get its house in order", adds Stefan Theil in Handelsblatt. A "banking and debt crisis festers", the "economic fallout" from Brexit is unclear and the EU still can't agree on how to deal with the migrant crisis. Germany has been repeatedly urged to show more active leadership. "The next four years will show whether that time has finally come."

Emily Hohler
Emily Hohler

Emily has worked as a journalist for more than thirty years and was formerly Assistant Editor of MoneyWeek, which she helped launch in 2000. Prior to this, she was Deputy Features Editor of The Times and a Commissioning Editor for The Independent on Sunday and The Daily Telegraph. She has written for most of the national newspapers including The Times, the Daily and Sunday Telegraph, The Evening Standard and The Daily Mail, She interviewed celebrities weekly for The Sunday Telegraph and wrote a regular column for The Evening Standard. As Political Editor of MoneyWeek, Emily has covered subjects from Brexit to the Gaza war.

Aside from her writing, Emily trained as Nutritional Therapist following her son's diagnosis with Type 1 diabetes in 2011 and now works as a practitioner for Nature Doc, offering one-to-one consultations and running workshops in Oxfordshire.

Latest