. Military Space News .
German Coalition In First Quarrel

Germany is virtually bankrupt: It has more people receiving social welfare checks and unemployed than any other European nation. Its current deficit is at more than $1.7 trillion, and for 2005, Germany is set to breach the European Union's stability and growth pact for the fourth consecutive time.

Kehl Am Rhein, Germany (UPI) Nov 17, 2005
Less than a week after it crafted a common coalition treaty Germany's incoming government is already at odds. The look of the country's budget has caused left and right to spit blood at each other, and the opposition is threatening to file suit with Germany's highest court.

Angela Merkel's conservatives and the rival Social Democrats, or SPD, have been in fierce opposition over the past four decades. When both camps endorsed the grand coalition treaty, they said they wouldn't start a loving marriage, but rather a pragmatic working relationship.

That working relationship came to a standstill, however, when Social Democrats and conservatives Wednesday and Thursday fought over the country's budget. Merkel's Christian Democrats, or CDU, accused the coalition partner of maneuvering the country into a financial disaster. The SPD responded the conservatives should leave campaign rhetoric out of the coalition.

The cause of friction is the country's 2006 budget. Both sides agreed to take on $48 billion in new debts, nearly double the $27 billion the government plans to spend in that year. The extra money is needed to pay interests and spark economic growth. The government will have to explain that in writing, however, as Germany's constitution only allows such a move if a "general disturbance of the economic balance" is given.

Incoming SPD Finance Minister Peer Steinbrueck says just that is the case, while the conservatives argue it's the rival's fault.

"It's obvious that our 2006 household has to be seen as the closing balance of seven years of SPD and Greens on government," CDU finance expert Michael Meister said.

Joachim Poss, a leading SPD finance expert, called Meier's comments "bad style."

The nervous reactions from both camps are understandable. Germany is virtually bankrupt: It has more people receiving social welfare checks and unemployed than any other European nation.

Its current deficit is at more than $1.7 trillion, and for 2005, Germany is set to breach the European Union's stability and growth pact for the fourth consecutive time. The pact requires members to keep budget deficit below 3 percent of the gross domestic product. Merkel has argued she wants to meet the pact's requirements by 2007, but she will have to save an additional $41 billion to do that.

The opposition argues, however, the coalition could have saved much more money as early as 2006, and has threatened to file suit with Germany's highest court.

"The grand coalition can do much, but it can't simply announce it will break the constitution," Guido Westerwelle, the top man of the Free Democrats, said Thursday. "More money could have been saved."

Winfried Fuest, senior finance expert at the German Economy Institute Cologne, said balancing the budget as early as this or next year would have been very hard to do.

"That would have needed more cruelties such as massive cuts to the social welfare system," he told United Press International earlier this week. "That obviously didn't fly with the SPD. But to me it's incredible that some social benefits were even boosted."

Despite current criticism, a suit filed with the highest court is unlikely. The opposition would need at least 205 of the 614 lawmakers for such a move, but it only has 166. It would need to recruit the extra votes from inside the coalition, and that's not going to happen, observers say.

But even if no suit is filed, the looming threat might be the only aim the Free Democrats want to achieve, Christian Pestalozza, constitutional law expert at Berlin's Free University, Thursday told UPI in a telephone interview.

"I suspect the opposition wants to get a bit of press as well after the coalition parties dominated the news in recent weeks," he said. "And that's totally fine: with their threats, they are at least pushing the government to check if they are on the right course."

Related Links
SpaceDaily
Search SpaceDaily
Subscribe To SpaceDaily Express

NATO Should Boost Openness, Political Role: Secretary General
Copenhagen (AFP) Nov 16, 2005
The NATO alliance needs to become more open and strengthen its political role, Secretary General Jaap de Hoop Scheffer said in a closing address to the NATO Parliamentary Assembly in Copenhagen on Tuesday.







  • Analysis: American Dynastic Diplomacy
  • Hu Says Stronger China Means Peace, Stability
  • Walker's World: Navy's China Diplomacy
  • US Needs Strong Military Presence In Asia: Study

  • China, North Korea, Iran Pose 'Greatest Danger' To US: Poll
  • Bush And Roh Say A Nuclear-Armed North Korea Is Unacceptable
  • Bush, Roh Call For NKorea Peace And Reunification
  • US Announces London Meeting On Iran Nuclear Program Friday

  • US Discussing Missile Defense Site In Europe With Poland
  • Italy, ATK And U.S. Navy Sign MoU For AARGM Missile Development
  • Raytheon Receives $1.3Bn Contract Modification For JLENS Development
  • AquaCell Helps To Keep The Missile Factory Clean

  • Koizumi Pushes Patriots As Defense Against Missile Attack
  • Sea-Based Missile Defense Test Called A Success
  • Lockheed Martin Team Launches Target Missile For Aegis Test
  • Sea-Based X-Band Radar Begins Transport Operation Through Straits Of Magellan

  • Russia, India To Build New Multi-Purpose Transport Plane: Minister
  • Lockheed Martin Adds Networked Combat Air Simulation To The Center For Innovation
  • Raytheon's RAPID Solution Supporting U.S. Army's FCA Supply Needs
  • NASA Flying Wing Model Soars In Historic Wind Tunnel

  • Sanswire Networks Demonstrates Sky Dragon Military Airship
  • Dragon Eye Protects Troops, Improves Recon
  • Northrop Grumman Awarded Contract to Produce RQ-4B Global Hawks
  • Singapore Looking To Buy Unmanned Surveillance Aircraft

  • Democrats Propose Pullout From Iraq, Battle White House
  • Legal, Policy, Moral Issues In Iraq Prisoner Abuse
  • Three Days That Changed America
  • Five US Marines Killed In Iraq

  • France, Italy Sign Multi-Billion-Euro Frigate Deal
  • EADS To Supply Digital Map Generators For Eurofighter And Tornado
  • VMA-214 Makes Aviation Munitions History Aboard Peleliu
  • EADS To Supply Digital Map Generators For Eurofighter And Tornado

  • The content herein, unless otherwise known to be public domain, are Copyright 1995-2006 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA PortalReports are copyright European Space Agency. All NASA sourced material is public domain. Additionalcopyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement