It is difficult to say whether the Federal Republic of Germany is triumphant or sad because of the victory of the coalition of Germany’s Social Democratic Party and the greens, Gerhard Schroeder is to keep his post at that. Analysts say, the world financial markets will hardly become enthusiastic about the victory. Moreover, during the elections European shares dropped to the lowest level registered within five past years. Experts are sure that Schroeder’s unconvincing triumph may result in collapse of the euro rate.
Europe is actively discussing the victory of light-minded Schroeder (Germans themselves call him this way) and economic consequences which may follow. Analyst with DZ Bank, Dorothea Hutannus says as quoted by RBC that “unconvincing results of the elections are the worst possible outcome for the euro.” Economist with DekaBank, Andreas Schuerle says, it would be better if only one party win the elections.
The skeptic opinions among the majority of European economists are based upon the fact that economic reforms carried out by Gerhard Schroeder before the elections were not distinct and marketable enough. The Federal Republic of Germany is one of the most economically developed EU members. However, all efforts of the federal government headed by Schroeder aimed at reduction of the unemployment rate came to nothing: the unemployment rate is still not lower than 10% of the able-bodied population of Germany. What is more, there is no doubt that it will be increasing. This is because of American investors who have turned against the chancellor, but who are at the same time known as the strong determinant of economic climate in the Old World.
RBC thinks that statement by one of New York’s Citibank top managers and President of the US Chamber of Commerce, Fred Irvin, is just another evidence of such dislike. He said, American investors were not going to invest in Germany’s economy. Fred Irvin is sure that US companies are unlikely to invest in Germany is no economic reforms are carried out there.
American investors are probably suspicious of the German Social-democratic leader because of his attempts to build a truly German foreign policy. Even though the newly elected chancellor usually denied any serious discrepancies between the USA and its European allies, he always insisted that Europe (and Germany as well) had its particular place in the world, and consequently, its particular role.
Strict criticism of the US-British military operation in Iraq could hardly win US sympathies with Gerhard Schroeder. And recent comparison of George W. Bush with Hitler allowed by Schroeder’s closest associate, Minister of Justice, Herta Daubler-Gmelin, caused hails of protest and anger in the USA. No matter how absurd it may sound, but it seems that Gerhard Schroeder and his party, trying to build a truly German foreign policy, became an enemy to America.
It looks as though Germany has finally awakened from a 50-year-long sopor which had crept over the country after the defeat in the WWII in 1945, and of abundant American investment that made for the German economic wonder.
As it turned out, Germany doesn’t really like “Great America” and wishes to follow its own way, not instructions from Washington. However, the process is currently at its start only.
We remember a discussion with German political scientist and philosopher Anne Roerig two years ago, when she was asked why Germany wasn’t expanding obviously profitable political and economic relations with Russia and wasn’t following a more independent policy. The woman exclaimed: “But Americans will then bomb us the same way they do in Yugoslavia!” It is a rather significant answer.
In any case, experts say that Schroeder’s victory at the elections is unlikely to have positive results. A sudden drop in the euro rate is the least we should be ready for.