Nothing is really changing politically in Berlin. To begin with, Germany’s socialists are currently in a coalition with the conservatives, forming an immense majority in parliament. The coalition has slowed down public spending cuts and reforms enacted by the previous government. The German Left is at risk of fading into irrelevance as its choices regarding coalitions are limited: it’s either Merkel once again or going down the road of a three-party coalition.
In this post-crisis economy, Berlin shouldn’t be interested in who organizes a government reshuffle in September, but should instead be concerned with how a freer economy can unleash the potential of hard-working Germans.
Germany’s historic free-market champion, former conservative politician Ludwig Erhard, should serve as a role model for the ideological emptiness of contemporary German politics. Erhard is known to be responsible for the most extensive period of economic deregulation in modern times. Instead of following the temptation of slowly moving towards more economically interventionist policies, Berlin should follow Erhard’s example who believed that, instead of central planners, individuals should decide a country’s future.
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