Real quick here on Germany and the refugee crisis since I wrote this up last week.
On the internal politics, I was saying that Horst Seehofer, the head of the CSU, Chancellor Merkel's Bavarian partner, was concerned about losing votes on the right. But, at the same time, one could argue that his challenging Merkel and offering to resign was an attempt to keep the coalition intact rather than blow it up. Just because he stepped down wouldn't mean the CDU and CSU couldn't remain partners. It would just mean Seehofer would no longer be around.
So Seehofer's bluff wasn't credible. Even so, Germany looks somewhat unstable here. Nevertheless, Germany is still more stable than people think.
The fact that we have a Grand Coalition and have had one for more than five years...
As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.