Power struggles at home will affect Merkel’s EU impact

THE battle to agree to common goals for the future government of Germany is well underway following the division of the ministries between the two coalition partners.

The areas for disagreement have been reduced with the incoming chancellor, Angela Merkel, agreeing to ditch some of the more controversial aims of her party including reducing trade union powers in wage agreements.

The market that responded positively to the news that she is to become Germany’s first woman chancellor, fell back yesterday as they realised that her four-seat majority hampers her scope for reforms.

She may have the power as chancellor but some warn she may not have the necessary control to achieve much.

For instance, in finance, the only minister that can veto government decisions if it leads to additional expenditure, has gone to the socialist SPD party.

The CDU also faces difficulties within its own ranks.

For instance, agriculture could turn out to be a problem. In the last government it was called consumer protection, food and agriculture with the Green party minister Renate Kunast putting the emphasis on consumers.

The new government will have Edmund Stoiber, leader of the CDU’s sister party the CSU, as one of its senior ministers and he is unlikely to see agriculture as a thing of the past to be subject to the whims of consumers. This minister-president of the strong agricultural area of Bavaria is expected to insist on a change in Germany’s attitude to its farmers.

This will in turn affect the EU’s policy. The major reform of the Common Agriculture Policy (CAP) will not be reversed but a pro-CAP Germany would interfere with attempts by Britain to hasten its demise.

The British had hoped that with Ms Merkel as chancellor they would have a supporter in their attempts to reform the EU, especially to reduce the amount of money the richer countries pay in.

But while Ms Merkel, who grew up in communist east Germany, is known to be a fiscal conservative, she does not appear to be another Margaret Thatcher when it comes to social policy.

As the only woman among the 25 government heads sitting around the EU table, it will be interesting to watch her influence.

The near-miss on Turkey, Britain’s only success so far during its six-month stint at the head of the EU, may arise. Ms Merkel favours a special relationship for Turkey rather than full membership, which is contrary to Britain’s view.

Other areas of EU policy to watch, however, will be her attitude towards Russia.

As the only EU leader capable of speaking to Russian President Vladimir Putin in his native tongue, and as someone who chafed under the Soviets, she is not expected to be as chummy with him as her predecessor was.