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German FDP chief pledges to cut power of unions (German Election)
FT Online ^ | 23 August 2005 | Hugh Williamson

Posted on 08/25/2005 6:01:59 AM PDT by lowbuck

Germany's liberal Free Democrats are ready to weaken the power of the influential trade unions in order to push through economic reforms were the party to enter government in next month's election, FDP leader Guido Westerwelle said on Tuesday.

“I won't be looking for conflict, but I won't avoid it if it's necessary in order to create a new beginning for Germany,” he said in an interview in Berlin.

In comments likely to fuel debate over which economic reform path Germany should take after the election, he accused the trade unions of being responsible for “blocking the reduction in mass unemployment” by clinging to Germany's rigid labour market rules.

Chancellor Gerhard Schröder said at the weekend that he feared social unrest if a coalition involving the FDP along with the main opposition Christian Democratic Union and the CSU, its Bavarian sister party, took power. Plans by the CDU and FDP to water down workers' rights could spark protests and social instability, he warned, adding that he favoured a less radical reform course.

Mr Westerwelle said union officials were “standing in the way” of changes that would make collective bargaining, job protection rules and shop opening hours more flexible, and were blocking cuts in expensive subsidies given to industries such as coal mining. The party also backs far-reaching changes to rules that give employees a voice in company decision-making.

Opinion polls indicate the FDP has a reasonable chance of returning to power, following their exit from government when former chancellor Helmut Kohl lost the 1998 election. The FDP is expected to gain 7-8 per cent of votes in the September 18 poll, while the CDU/CSU is on 42 per cent, giving such a coalition a narrow parliamentary majority.

While leading business associations have praised the FDP for its company-friendly policies, the DGB trade union confederation says a government role for the liberals – and for Mr Westerwelle in particular – would be the worst-case scenario for post-election Germany.

Mr Westerwelle, a 43-year-old lawyer, is seen by many in the FDP and elsewhere as a rather lightweight politician, in part because of the FDP's unsuccessful 2002 election campaign that focused more on showmanship than substance.

He could become justice or culture minister if the FDP entered government, but is likely to be forced to resign as FDP chairman if the party failed to secure a place in a governing coalition.

The FDP, seeking to present itself as Germany's leading pro-reform party, this week launched the “reform-express”, a bus painted in the party's trademark yellow that will tour Germany preaching Mr Westerwelle's message of low taxes and less government bureaucracy.

His remarks came ahead of a summit today in Berlin of leaders of the CDU, CSU and FDP aimed to show opposition unity. Mr Westerwelle admitted, however, that the FDP did not see eye-to-eye with the conservatives on tax policy, criticising in particular the CDU's plan to increase value added tax by two percentage points.

Mr Westerwelle said he would use post-election coalition talks to “insist on low tax policies as the best means to promote employment and growth”.

However, he did not rule out entering government with the CDU even if the latter stuck to the VAT rise.

Achieving substantial economic reform in Germany would be a “Herculean task”, he said, owing to the power of vested interests and the reform backlog in Germany's social security and tax systems. Yet such changes were possible, and would lead to fewer German companies “fleeing overseas”.


TOPICS: Germany; Politics/Elections
KEYWORDS: cducsu; fdp; germanelection; pharisee1; spdgreens
Today the German constitutional court ruled to allow the election to go ahead on Sept 18th.

Change, hopefully, is afoot in Germany!! Although the FDP has a small following it looks like they together with the CDU/CSU have the ability to join together and lead Germany. This article gives a good overview of what the pro business believers are about and what they are up against.

1 posted on 08/25/2005 6:02:00 AM PDT by lowbuck
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To: lowbuck

"Chancellor Gerhard Schröder said at the weekend that he feared social unrest if a coalition involving the FDP along with the main opposition Christian Democratic Union and the CSU, its Bavarian sister party, took power."

Unfortunately, Germany now has two alternatives: social unrest and complete, unalterable decline.


2 posted on 08/25/2005 6:06:50 AM PDT by strategofr (What did happen to those 293 boxes of secret FBI files (esp on Senators) Hillary stole?)
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To: lowbuck

From left to right: gay politician Guido Westerwelle (FDP-chairman), CDU/CSU-candidate for Chancellor Angela Merkel (CDU-chairwoman) and Bavarian Prime Minister Edmund Stoiber (CSU-chairman).

3 posted on 08/25/2005 6:07:39 AM PDT by Michael81Dus (Venimus adorare eum - Immanuel, Gott ist mit uns!!)
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To: Michael81Dus

Hello Michael,

The polls have been all over the place (if you believe what you read and hear). Do you think that the CDU/CSU/FDP will be gain a clear majority and thus push their program?


4 posted on 08/25/2005 6:21:33 AM PDT by lowbuck
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To: lowbuck
Achieving substantial economic reform in Germany would be a “Herculean task”, he said, owing to the power of vested interests and the reform backlog in Germany's social security and tax systems. Yet such changes were possible, and would lead to fewer German companies “fleeing overseas”.

This is it in a nutshell, imho.

The Germans HAVE to let go of their RIDICULOUS "bennies" and make their slackers and unemployed get back to work.
Germans, of all people, know this.

5 posted on 08/25/2005 6:21:50 AM PDT by starfish923
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To: lowbuck
The polls have been all over the place (if you believe what you read and hear). Do you think that the CDU/CSU/FDP will be gain a clear majority and thus push their program?

Not with Gay Guido. I don't trust him. I think he's a "lightweight" too.
Sorry for butting in, but I couldn't resist.

6 posted on 08/25/2005 6:23:36 AM PDT by starfish923
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To: starfish923; lowbuck

Guido got more reason in the last three years, imo. The coalition between CDU/CSU and FDP won´t be a love affair (literally!), but the most agreements are in the sector economy. So there´s no doubt that Germany is coming back. It´ll take some time, though.


7 posted on 08/25/2005 7:18:12 AM PDT by Michael81Dus (Venimus adorare eum - Immanuel, Gott ist mit uns!!)
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To: Michael81Dus
Guido got more reason in the last three years, imo. The coalition between CDU/CSU and FDP won´t be a love affair (literally!), but the most agreements are in the sector economy. So there´s no doubt that Germany is coming back. It´ll take some time, though.

Germany was BOUND to come back.
They have had enormous obstacles to overcome....one of them being former East Germany.
They will come back, stronger and better. Predictable.

8 posted on 08/26/2005 6:28:41 AM PDT by starfish923
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