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Sunday 22 September 2013

Is Germany's future bright?

With the election taking place today, the odds are for another so called,"Great Coalition" between Merkels party (CDU) and Social Democrats (SPD), her main opponents. Both parties have very different views about Germany's future so will a change in parliament have an effect on their economic growth?

It was revealed last month that Germany had an increase in GDP for the second quarter of 2013 putting them as the world's fastest growing industrialised economy. This has came at the right time for Merkel and her campaign. Many voters have been uncertain with what she is more focused on, her country or the Eurozone. The statistics will help put people at ease along with demonstrating her party are not just concerned for what is happening elsewhere in Europe but also care for the growth of their country too. 

Despite this, lack of investment in infrastructure, education and development is a concerning issue that will need to be addressed. It's also apparent that there's an excessive reliance on their export market. A collapse or downfall in this would have catastrophic consequences which is something Germany cannot afford to happen. 

This leaves us with the question of, will a change in parliament help to abate these problems listed above and enhance growth, or, do very much the opposite? 

My verdict:
I feel that the German people have strong trust in Merkels campaign and what she has already achieved for the German economy so far as leader. If she can take care of the problems within the German economy, such a improving education (an example of a supply-side policy) this will benefit the future of their workforce and increase the number of skilled workers. At this point in time, Germany have not one university in the worlds top 50. 

However, with a new "grand" coalition looking to be the likely result of the vote, it could cause potential threat to Merkels plans for the future of not just Germany, but Europe. Merkel and Steinbrueck  (Leader of Social Democrats) have worked together, with him being Merkels finance minister during 2005-09. Could this bond from four years ago be re-sparked? Is a bright future for Germany to follow? I guess time shall tell. 


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