AfD Wins Big In Another Two German State Elections
We recently pointed out that Germany’s EU-skeptic AfD party has the potential to become a serious political force (see “22% Can Imagine Voting for the AfD” for details). Over the weekend, two further German state elections in Thuringia and Brandenburg confirmed this assessment. In both elections, the AfD was by far the biggest winner, going from zero to 10.6% of the vote in Thuringia and from zero to 12.2% in Brandenburg. We prefer to refer to the party as EU-skeptic rather than simply “euro-skeptic”, although the latter is the label most often used in the mainstream press. While the euro-area’s sovereign debt crisis was the main motivation for the party’s establishment, its ideas had already come in favor among a growing number of people before the crisis. There merely was no party-political platform available to them previously – now there is.
Once again the Free Democratic Party was essentially wiped out in both states (which we believe is unfortunate), but the AfD also seems to have attracted voters from the left – from the Left Party in Brandenburg and the SPD (social democrats) in Thuringia. This is an interesting development, as the party is certainly not leftist in its outlook.
Although the party has gained a respectable percentage of the vote – beating e.g. the Green Party handily – it will be spared from taking part in a coalition government, as majority governments can be formed in both states without its participation and the establishment refuses to have anything to do with the AfD. We say “it will be spared” because experience has shown that being the junior partner in coalition can be deadly. The junior partner as a rule loses much of its base, which tends to be unhappy with the compromises that need to be made in order to join a governing coalition. The opposition role by contrast allows for the party’s stance to be pursued with the same undiluted vigor as before. Voters often see participation in coalitions simply as a way to gain well-remunerated posts by essentially selling out.
As to why the established parties don’t want to form coalitions with the AfD at this time, the main reason is probably that they have painted the party as being “far right”. As we have pointed out, this is an erroneous characterization that has clearly backfired in recent state elections (i.e., voters don’t believe it, and rightly so). It has become common to assert that EU-skeptic parties all belong to the “far right” (unless they are clearly far-left parties such as SYRIZA in Greece), but this is simply incorrect in this case, just as it is incorrect in UKIP’s case.
Germany’s political establishment is strongly pro-EU, as the crisis has clearly demonstrated. Although even the established parties have tied their support of the various bail-out measures to “austerity” and a “fiscal compact”, voters are probably well aware that these conditions are somewhat lacking in substance (debt continues to grow everywhere, the ECB is acting very un-BuBa-like, and bigger nations like France continue to do whatever they like anyway).
The success of the AfD has definitely sent shock-waves through the establishment. One likely effect is that the establishment will become wary of being seen as being too supportive of Brussels. In other words, the AfD’s success is likely to influence policy, just as the electoral successes of the then new Green Party in the 1980s and 1990s led to the adoption of environmental policies by establishment parties. Below are the election results and maps that show where the two states are situated in Germany. These are not very populous states to be sure, but the AfD was quite successful in the larger Free State of Saxony as well. The results are definitely indicative of a trend, although the biggest test will be how the party will fare in elections in the more densely populated Western German states.
Election result in Thuringia, 2014 and 2009 elections compared. Legend: CDU = “Christian Democratic Union” (conservatives, led by chancellor Merkel on the federal level), Die Linke = “The Left” (a party to the left of the social democrats). SPD = “Social Democratic Party”, FDP = “Free Democratic Party” (liberals), Grüne = “Green Party”, Sonst. = “Others” – click to enlarge.
Thuringia is the dark green part of the map.
Brandenburg state election results, 2014 and 2009 compared. Here an additional protest party is represented on the chart (Freie = “Free Voters”), which didn’t make it into parliament however – click to enlarge.
Brandenburg in dark green – the portion in the middle is the city-state of Berlin, Germany’s capital. Brandenburg used to be the heartland of Prussia.
The AfD continues to look quite strong. We now know definitely that the election result in Saxony wasn’t an outlier, but rather a sign of things to come. The euro zone debt crisis was used by the political establishment to push for more centralization – a plan formulated by Romani Prodi back in 2001 already, who predicted that the establishment of the euro would eventually lead to a crisis that would allow the centralizers to push for policies they would otherwise be unable to implement. However, as the success of the AfD, UKIP, 5-Star in Italy, and even the FN in France (which is indeed deserving of the “far right” moniker) shows, there is quite a bit of push-back on the part of voters, and it hasn’t lost any of its momentum yet.
You may have noticed that our so-called “semiannual” funding drive, which started sometime in the summer if memory serves, has seamlessly segued into the winter. In fact, the year is almost over! We assure you this is not merely evidence of our chutzpa; rather, it is indicative of the fact that ad income still needs to be supplemented in order to support upkeep of the site. Naturally, the traditional benefits that can be spontaneously triggered by donations to this site remain operative regardless of the season - ranging from a boost to general well-being/happiness (inter alia featuring improved sleep & appetite), children including you in their songs, up to the likely allotment of privileges in the afterlife, etc., etc., but the Christmas season is probably an especially propitious time to cross our palms with silver. A special thank you to all readers who have already chipped in, your generosity is greatly appreciated. Regardless of that, we are honored by everybody's readership and hope we have managed to add a little value to your life.
Bitcoin address: 1DRkVzUmkGaz9xAP81us86zzxh5VMEhNke
Most read in the last 20 days:
- Gold Sector: Positioning and Sentiment
A Case of Botched Timing, But... When last we wrote about the gold sector in mid February, we discussed historical patterns in the HUI following breaches of its 200-day moving average from below. Given that we expected such a breach to occur relatively soon, the post turned out to be rather ill-timed. Luckily we always advise readers that we are not exactly Nostradamus (occasionally our timing is a bit better). Below is a chart of the HUI Index depicting the action since the January...
- India: The next Pakistan?
India’s Rapid Degradation This is Part XI of a series of articles (the most recent of which is linked here) in which I have provided regular updates on what started as the demonetization of 86% of India's currency. The story of demonetization and the ensuing developments were merely a vehicle for me to explore Indian institutions, culture and society. The Modimobile is making the rounds amid a flower shower. [PT] Photo credit: PTI Photo Tribal cultures face...
- The Long Run Economics of Debt Based Stimulus
Onward vs. Upward Something both unwanted and unexpected has tormented western economies in the 21st century. Gross domestic product (GDP) has moderated onward while government debt has spiked upward. Orthodox economists continue to be flummoxed by what has transpired. What happened to the miracle? The Keynesian wet dream of an unfettered fiat debt money system has been realized, and debt has been duly expanded at every opportunity. Although the fat lady has so far only...
- Welcome to Totalitarian America, President Trump!
Trump vs. the Deep State If there had been any doubt that the land of the free and home of the brave is now a totalitarian society, the revelations that its Chief Executive Officer has been spied upon while campaigning for that office and during his brief tenure as president should now be allayed. Image adapted from the cover of “Deep State #5” - depicting an assassin from the future President Trump joins the very crowded list of opponents of the American...
- March to Default
Style Over Substance “May you live in interesting times,” says the ancient Chinese curse. No doubt about it, we live in interesting times. Hardly a day goes by that we’re not aghast and astounded by a series of grotesque caricatures of the world as at devolves towards vulgarity. Just this week, for instance, U.S. Representative Maxine Waters tweeted, “Get ready for impeachment.” Well, Maxine Waters is obviously right – impeaching the president is an urgent...
- Boosting Stock Market Returns With A Simple Trick
Systematic Trading Based on Statistics Trading methods based on statistics represent an unusual approach for many investors. Evaluation of a security's fundamental merits is not of concern, even though it can of course be done additionally. Rather, the only important criterion consists of typical price patterns determined by statistical examination of past trends. Fundamental considerations such as the valuation of stocks are not really relevant to the statistics-based trading...
- Searching for Truth
Heresy or Truth? RANCHO SANTANA, NICARAGUA – In the fifth century, Christian scholars counted 88 different heresies. Arianism. Eutychianism. Nestorianism. If there was a way to “offend” God, they had a name for it. One group of “heretics” argued that there was no such thing as “original sin.” Another denied the trinity. And another claimed Jesus was not divine. Which one had the truth? Depiction of the first Council of Ephesus in 431 AD, convened by Emperor...
- Why the 21st Century Sucks - Turtles All the Way Down
A Truly Sucky Century BALTIMORE – What an awful century! Worst we’ve ever seen. Household incomes are down. Employment is down, with 7 million people in the U.S. of working age without jobs. Productivity growth is down. GDP growth is down – to only about 0.5% per capita last year. Even life expectancies are down. Drug overdoses are up. Suicides are up. One out of every eight children lives in a family getting food stamps. One of out every eight adults takes psychoactive drugs...
- Gold and the Fed's Looming Rate Hike in March
Long Term Technical Backdrop Constructive After a challenging Q4 in 2016 in the context of rising bond yields and a stronger US dollar, gold seems to be getting its shine back in Q1. The technical picture is beginning to look a little more constructive and the “reflation trade”, spurred on further by expectations of higher infrastructure spending and tax cuts in the US, has thus far also benefited gold. From a technical perspective, there are indications that the low at $1045.40,...
- The Unstable Empire – A Campfire Tale
Campfire Tale Caesar: The Ides of March are come. Soothsayer: Ay, Caesar, but not gone. — Julius Caesar, Shakespeare GRANADA, NICARAGUA – Today, we stop the horses and circle the wagons. For 19 years, we have been rolling along, exploring, discovering. We began with the assumption that we didn’t “know” anything - so we kept our eyes open. Now we know even less. Famous people who knew nothing and were not shy to admit it: Sergeant Schultz...
- Off the Beaten Path in Mesoamerica
Greeted by Rooster There’s an endearing quality to a steadfast rooster call at the crack of dawn when overheard from a warm country farmhouse. There’s a reassuring charm that comes with the committed gallinaceous greeting of daybreak that’s particularly suited to a rural ambiance. The allure of a morning cock-a-doodle-doo somehow falls flat in all other settings. Good morning everyone! Before meteorological forecasts were available on TV and smart phones, people...
- Why Silver Went Down – Precious Metals Supply and Demand
Rumor-Mongering vs. Data The question on the lips of everyone who plans to exchange his metal for dollars—widely thought to be money—is why did silver go down? The price of silver in dollar terms dropped from about 18 bucks to about 17, or about 5 percent. Reportedly silver was already assassinated in the late 19th century... so last week they must have assassinated its corpse. [PT] Illustration taken from 'Coin's Financial School' The facile answer is...