Last Sunday Germany held its parliamentary election. Choosing representatives to the Bundestag is the only vote the German citizen is allowed at the federal level. After the parliament is constituted, representatives then select the German chancellor.

It has turned out to be a fine mess. The vote between the two major parties was very close and reminds me of Bush-Gore 2000 without the recount and attendant illegalities. What is significant is that the voters staved off moves toward a more "American-style" economy. (The EU constitution was approved by Germany before it was rejected by the French, but it was approved by the Bundestag, not by the people.)

On Tuesday Nicholas Kralev of the Washington Times wrote—

The political deadlock was not to the markets' liking yesterday. German stocks tumbled, and the euro fell to its lowest level against the dollar in seven weeks.

When caused by an election, that is usually a good sign.

Chancellor Gerhard Schroeder's party plus their coalition partner the Green Party came in with fewer votes than challenger Angela Merkel's party along with their presumed coalition partner. But thanks to the New Left Party, which did better than the Greens though snubbed by both Schroeder and Merkel, neither major party can form a majority—unless they join each other in what is referred to as the "grand coalition."

The five parties each have an associated color, which allows the press to refer to the various coalitions as color combinations. The current government is known as the "red-green" coalition. One possibility is known as the "traffic light" coalition: red-yellow-green.

In case you're still wondering who will be the chancellor, I'll leak the secret—Schroeder is going to retain the post despite having fewer votes. Why? Because the communists and discontented Social Democrats of the New Left Party are going to throw their support his way.

---

4:44 pm

Yesterday Frau Merkel met with leaders of the Green Party to try to sway them in her direction. Stephen Graham of the AP reported—

Green party co-chairman Reinhard Buetikofer said he had challenged Merkel and Edmund Stoiber, leader of the Bavaria-only Christian Social Union, to explain whether they would drop their "neo-liberal, radical market, anti-ecological policies."

"Mrs. Merkel and Mr. Stoiber didn't give us the answer, and on that basis we said we see no possibility to recommend further talks," Buetikofer said.

How often do you see free-market policies referred to as "radical"?

Related post
Quote of the Day (9/19/05)