Article 63: It’s the New Article 50

So what’s going to happen next in Germany? It’s worth taking a look at the mechanics of how Germany elects a Chancellor. These are set out quite specifically in Article 63 of the Grundgesetz. The text is here and an official explanatory note by the parliamentary administration is here. Article 63 foresees a step-by-step process:

1) The Federal President, currently Frank-Walter Steinmeier, proposes a candidate. This candidate can be any German citizen who possesses the right to vote and to stand for election, and doesn’t have to be a member of the Bundestag. The choice is left entirely to the President, who is not required to take heed of any recommendation from the parties or anyone else. The Bundestag note says that such a candidate should be capable of a majority in parliament, but the letter of the law doesn’t prescribe any test for this. The law leaves open how long the President can take to make a decision. During this period of time, the President can require the current Chancellor to stay in office, and in practice always does. While this is the case, the Bundestag can’t vote no-confidence in them.

2) Once the choice is made, the Bundestag divides on a straight up-or-down vote. There is no debate and no other candidate at this point, it’s purely yes or no on a secret ballot. If the candidate gets an absolute majority, the President is legally bound to appoint him or her as Chancellor without further delay. Every Chancellor so far has been elected at this step.

3) If the absolute majority is not forthcoming, the Bundestag now gets 14 consecutive days from the time of the vote to elect a Chancellor, again by absolute majority. If a candidate is elected, the President must appoint them within seven days. The law leaves this phase entirely up to the Bundestag and therefore to its President, a certain Wolfgang Schäuble.

4) If there is still no solution after 14 days, a further round of voting takes place immediately. If a candidate does, in fact, get a majority at this point the usual rules apply and the President must appoint them with seven days. Failing that, though, the President has the right to either appoint the candidate with the most votes, or call a general election, which must occur within 60 days. If there is a tie, voting continues. If the President wants new elections, they must be called within the seven days or else that option is lost.

Some comments about this. First, the President’s role is quite powerful. Rather than ratifying the majority leader’s claim, the President at least theoretically makes an active choice and can in fact choose someone completely different.

Second, it’s going to be difficult to go through this process without Angela Merkel being chosen. The law leaves the President free to choose, but as the Parliamentary note points out, the President is given plenty of time precisely in order to choose someone who commands a majority. It is hard to think of anyone with a better claim. And the first Bundestag vote does not provide for an alternative candidate. It would be very difficult to keep half the Bundestag from electing her given the chance, or bringing her back in the second phase if Steinmeier was to astonish everyone by picking someone else.

Third, it’s going to be very difficult to get to new elections without cross-party agreement that they are necessary. The process defined in Article 63 sets up steadily rising pressure on the parties to agree on a chancellor. For almost any party, it would be better to come to an agreement under 3) rather than have someone imposed under 4). It would likely be necessary for one or more parties to deliberately throw several votes in order to get to new elections.

Fourth, the Bundestag is free to organise Step 3 as it wishes, so it’s probably worth having a look at that.

In the 2013-2017 Bundestag, the parliament’s own rules of procedure required a candidate to get either the signatures of 25% of its members, or else the support of a parliamentary party including 25% of the members. The absolute minimum of support required to appear on the ballot was therefore 12.5% plus one vote – a majority of a party big enough to account for 25% of the members. This rule, Section 4 of the Rules, is still in force. Now, the only parliamentary party big enough by itself to put forward a candidate is the joint CDU-CSU, with 246 out of 709 seats, 34.7%. Section 4 therefore provides that the magic number required to put forward a candidate is 17.35% or 124 exclusively CDU-CSU votes – if we get to Step 3 at all. For a cross-party candidate, it’s 177.

The FDP has left the centre

This chart from the Berliner Morgenpost‘s election night data feature tells you everything you need to know about how the German coalition talks broke down. It shows the ideological positioning of every new MdB from the 2017 election.

The data is taken from Abgeordnetenwatch‘s candidate checker, which administered a standard questionnaire to all the candidates. I think the analysis they ran is the same one Chris Lightfoot’s empirical political compass survey used – ask them all a list of questions and then apply principal-components analysis in order to discover which combinations of questions and answers explain most of the variation between them. Rather than define the political positions and score people against them, this technique allows the positions to emerge from implicit relationships among the responses.

In the event, one axis shows a well-defined left-to-right political spectrum, spookily matching the Bundestag’s own hemicycle. The Left Party lines up on the far left, the Greens come next, and then the Social Democrats. Beyond the centre, the CDU and CSU line up in a similar way. All very orderly, like the main sequence of stars in the Hertzsprung-Russell diagram.

But then there’s the other axis. This gives us a cloud of anomalous outliers. You could try to make sense of this as a liberal-authoritarian axis, but the civil-libertarian Greens are on the same level as the CSU, so that won’t wash. It might be more useful to think of it as running between pro-Europeans or globalists and Eurosceptics or even, thinking of the AfD, provincial particularists. This might be right – some of the Left Party and CSU people on the fringes score higher on it, and both groups are critical of the EU.

Whatever it is, the property it measures is something that the AfD has in spades and that the rest of the political system doesn’t. The most left- and right-wing members of the political main sequence also have it to some extent. Fascinatingly, the new FDP MdBs are often very high scorers on it. In fact, the FDP overlaps startingly with the AfD, and it seems to have largely vacated the centre. Centrist Dad has left the building.

One possibility is that this axis might be measuring discontent with the Federal Republic in general, or a stereotypically populist attitude. Now, it’s been suggested on and off going back to the early 2000s that the FDP might drift into populism. Its early postwar history, in fact, saw it skate very close to a role like the FPO’s in Austria, basically a retirement home for old Nazis, before it installed itself in the main sequence of Federal Republic politics. And its role in government has often been…rather like a populist protest movement, but for rich people.

In some ways, what differentiates the CDU from the FDP is that the first is dominated by the business lobby, and the second by the wealth lobby. Conservative parties usually try to fuse both roles, fighting for the market economy and also for plutocracy at one and the same time. Perhaps this is why the CDU is one of the least objectionable forms of conservatism? One way in which this might be working out in practice is economic libertarianism. The first version of the AfD was very much about hard-money libertarian economics, before it swung further towards nationalism and populism. And after all, the alliance of libertarianism and nationalism is stinking up a comments thread near you right now. Jasper von Altenbockum says something similar in the FAZ here, pointing out that the FDP has been emphasising both its economic libertarian and its “national-liberal” side in pursuit of AfD votes.

This makes a lot of sense. Neither the CDU nor the Greens have any use for the politics of the Internet troll. And Rich People Populists; it’s a thing. You down with RPP? Yeah, you know me…

Arrr!

Remember the Pirate Party?

Back in September 2011, they boarded the Berlin city-state legislature, winning 8.9 percent of the vote. That put five parties in the legislature and complicated the coalition math. They highlighted the Greens’ generational challenges, put digital issues on leaders’ radar screens, and showed that discontent among Berlin voters was not limited to the eastern parts of the city.

After that breakthrough, they won seats in the state legislatures of Saarland (in March 2012), in Schleswig-Holstein (in May 2012), and in North Rhine-Wesphalia, Germany’s most populous state (also in May 2012). Looking forward to national elections in the fall of 2013, they polled as much as 13%. A fleet of black and orange sails was visible on the horizon.

Then what happened?

Scandals, splits, sinking. They were chronically short on money, early leaders proved unable to grow or govern the organization (sometimes the leaders were unable even to govern themselves), and then some things just got weird. They also had problems with rightist extremists in their ranks.

After their rise in 2012, in 2013 the Pirates just barely cleared 2 percent in Lower Saxony (January), fell below that in Bavaria (July) and hovered near that figure in the national elections in September. In the years that followed, the Pirates sailed away from the state legislatures they had so brazenly boarded in the heady days that followed their Berlin success.

In the national election in September 2017, they polled less than one half of 1 percent.

The tale of the Pirates is unlikely to be instructive for AfD, its leaders, or its voters. It should be. It is very similar to the tale of the Republikaner, which won seats in Baden-Württemburg, Berlin and Bremen. It is similar to the tale of the “Schill Party,” which won nearly 20 percent of the vote in Hamburg in 2001 and entered the legislature as the third strongest party. The NPD and DVU had similar trajectories with lower peaks.

The AfD has done what no party since the Greens has done: win enough votes in a national election to enter the Bundestag. And yet, at their first press conference after the election, one of their most prominent members, Frauke Petry, announced that she would not be part of the party caucus and walked out on live television. It’s unlikely to be the last division.

Dead parties tell their tales, even if no one in the latest sensation is inclined to listen.

Brexit and Banks

With Prime Minister May due to trigger Article 50 eight days from now, shit’s about to get real the clock is about to start ticking, not least for the huge financial center in London. Nothing in the present UK government suggests that they will be able to negotiate an amicable separation in the twenty-four months before they are unceremoniously bounced from the European Union. (Less actually, as agreements will have to be finished early enough for the relevant bodies to vote on their approval.) Hard Brexit, here we come.

Likewise, I don’t see any reason for the 27 to let London continue to have the same access to EU financial markets that it had when the UK was a member of the Union. Prudent bankers came to similar conclusions long ago, and indeed Bloomberg finds that plans to move people and capabilities into the remaining EU are taking concrete shape. Frankfurt and Dublin are the likeliest winners: Frankfurt is the largest financial hub on the continent, and home to the European Central Bank; Dublin is the only English-speaking alternative. (At least until Scotland joins the Union.) This was always the way to bet, and reporters’ talks at individual banks are adding micro details to the macro framework.

“Bank of America Corp., Standard Chartered Plc and Barclays Plc are considering Ireland’s capital for their EU base to ensure continued access to the single market, said people familiar with the plans, asking not to be named because the plans aren’t public. Goldman Sachs Group Inc. and Citigroup Inc. are among banks eyeing Frankfurt, other people said.”

Two Japanese institutions Bloomberg spoke with are considering Amsterdam; Morgan Stanley, local patriots, insisted that New York would gain as they and other institutions re-allocated resources away from Europe entirely. Brexit is going to put a huge dent into one of the UK’s most important economic sectors. Taking back control!

Pofalla

Remember Roland Pofalla? Sure ya do. The minister in charge of Angela Merkel’s private office, and therefore Germany’s intelligence services, who vehemently denied anyone had been spied upon when the Snowden leaks hit. Pofalla denied everything, on the basis that the Americans had told him so. When it became clear from the documents that huge amounts of mobile network data were available in XKEYSCORE from a German source, he said it came from the German army’s field ELINT team in Afghanistan.

At every turn he denied everything, and it may have been him who invented the talking point that European intelligence services picked things out like a harpoon, rather than scooping everything up like a trawler, like the horrible Americans. This would later be used repeatedly to justify French surveillance legislation and was presumably coordinated with them. Of course, you can’t “pick out” items of signals intelligence without first scooping them up and examining them to see if they’re the ones you want to “pick out”.

Now it turns out they were listening to Pofalla’s mobile phone, on the number he still uses today.

Very, very foolish words.

This FAZ story, suggesting that Angela Merkel and Wolfgang Schäuble are not on the best of terms over negotiations with Greece and that Wolfi might even resign, should be read in the context of Merkel’s past career.

Schäuble wiederum habe nur zufällig von dem Treffen vorab erfahren und zwar nicht von der Kanzlerin, sondern weil ihm Lagarde davon erzählte, berichtet die „Bild“-Zeitung. Und zitiert einen anonym gebliebenen Berater Schäubles mit den Worten (über Merkel): „Das war eine Solo-Nummer von der Dame.“ Außerdem habe der Beamte in Schäubles Ministerium noch hinterher geschickt: „Merkel lässt sich gerade über den Tisch ziehen.“

So the Bild reckons Wolfi wasn’t invited to the meeting in Berlin where Hollande, Merkel, Juncker, Draghi, and Lagarde got together. (A Bild trigger-warning is probably appropriate, but still.) They also quote an anonymous source as saying “it was one of the lady’s solo numbers” and that Merkel “is getting the wool pulled over her eyes”.

All I can say here is: Watch out! Also, there’s this, which at least has a name attached to it and some direct speech:

„Wolfgang Schäuble geht keine faulen Kompromisse ein, er wird seine Glaubwürdigkeit nicht gefährden“, sagte der CSU-Politiker Hans Michelbach der „Bild“. Und fügte hinzu: „Und ohne Schäuble stimmt die Fraktion nicht zu.“

So, according to a CSU MP, Michelbach, the party won’t vote for anything Schäuble doesn’t support. The first problem here is that Michelbach isn’t in his party. The second, and much more important, is that there’s a word for grey men from Bavaria who patronise Angela Merkel: dead. Or at least mundtot. And just try re-reading that first quote. Either Bild really did make it up – not impossible for them – or someone really went out of their way to make trouble.

Everyone’s now rapid-rebutted the story, which of course they would have done if it was true. But nobody should doubt that she would get rid of Schäuble in a hot minute if that seemed expedient, nor that she’d be entirely willing to use SPD votes to crush Michelbach and Co, if she didn’t just call their bluff. That the AfD was last seen suing itself over whether to elect delegates to a party conference or find a hall big enough for the whole membership only underlines the point.

The graveyard is full of the indispensable, and the CDU chapel within it is full of grand sub-Helmut Kohl male egos who got in Merkel’s way.

Pay no attention to the social democrat behind the curtain.

Perhaps we’ve been watching the wrong German politician throughout the whole Greece/Eurogroup drama. Usually, the Vice-Chancellor of Germany is one of those posts that comes with a lot more dignity than it does power, like the US vice-presidency in the pre-Cheney days when it wasn’t worth a pitcher of warm spit. It tends to be given out as a decorative title to a junior coalition partner, rather in the way Nick Clegg was given the title of Deputy Prime Minister, something which has even less basis in British constitutional practice.

But Bernd Hüttemann reminded me of something important on Twitter yesterday, as follows.

Sigmar Gabriel, for it is he, is not just vice-chancellor and SPD leader, but also federal minister of economic affairs, and the minister responsible for government-wide coordination of European policy. The ministry gives details of its role here.

It has to ensure that the German government has a common line-to-take towards the European institutions, to keep the Bundestag informed, and to give directions to the German representatives in COREPER 1. That’s the boring-but-important stuff such as Competition, Energy, Agriculture, etc. It also gives directions jointly with the ministry of foreign affairs to German representatives in the more politically glamorous COREPER 2, including the General Affairs council, Justice & Home, and crucially, ECOFIN. It is the government’s authority on European law. Its officials chair most committees on European issues within the German federal government, including the permanent secretaries’ committee on European affairs, which they lead jointly with the foreign ministry.

The foreign minister is, of course, Gabriel’s fellow Social Democrat, Frank-Walter Steinmeier. This gives him a lot of agenda-setting power and a lot of access to Angela Merkel. He probably has more executive power than Joschka Fischer did as vice-chancellor and foreign minister. Having a bigger gang behind him, and also a European crisis, means he also has more than FDP leaders Westerwelle or Rösler although they had the same ministry.

This is important. In a sense, even decades after reunification, we still see two Germanies. People on the Left tend to swing between admiration for its social democracy, long tenancies, environmental commitment, demonstrative feminism, cycleways, safe-standing terraces at the football, and the like, and utter exasperation with its commitment to European monetarism, bourgeoisity, inflation dread, and tolerance of Bild Zeitung‘s ravings at the Greeks. People on the Right tend to wish they could have a budget surplus, a Bundesbanky monetary policy, and more public churchiness, except when they’re convinced Germany is a terrible warning of the inevitable doom of the welfare state. It wasn’t that long ago.

Wolfgang Schäuble, of course, personifies the hard-money version of Germany. But Germany doesn’t only have a finance ministry. It also has a ministry of economic affairs that has an eye to industrial priorities and real institutional strength, rather like the brief Department of Economic Affairs Harold Wilson set up in the UK back in the 1960s was meant to be. The DEA was intended pretty much as an anti-Treasury, and I think we can read Gabriel’s role at the moment as something similar – a growth-oriented lobby that would structurally lean towards a lower exchange rate, because it represents mostly export-heavy manufacturers and industrial workers.

In practice, a lower effective exchange rate for Germany means keeping the Euro show on the road, complete with Greece. Either leaving the euro, or kicking out the south, would surely cause the rate to rocket upwards with ruinous consequences for Gabriel’s clients. It’s therefore very significant that the export lobby in German politics has managed to get more influence over Germany’s interface with the European institutions. And here’s the man himself:

This might explain an important feature of the agreement the Eurogroup eventually reached. Greece is said to have “capitulated” by accepting the “November 2012 targets”. However, the agreement specifically doesn’t set any fiscal target for the year 2015, and proposes that we meet again in June to negotiate a new program replacing that of November 2012. Therefore, the targets don’t exist for this year, and those for future years are by the by. Perhaps they will influence the talks in June, but this strikes me as a concession without much substance. A bit like making the FDP leader vice-chancellor. And the talks will be heavily influenced by the boring technical stuff Gabriel’s ministry has most power over.

This might also explain why Schäuble seems quite so grumpy these days. Much of the content of policy reaches German officials in Brussels and elsewhere via Gabriel and Steinmeier’s staffs. In a real sense, he only has full and undivided control when ECOFIN (or the Eurogroup, which isn’t explicitly evoked by the ministry’s text) is meeting at ministerial level, and he is physically present. Which puts an interesting light on the whole row about that nonpaper that was supposedly issued after he left the building…

When he isn’t, his main means of influence is either shouting the odds in the media, or else going via Angela Merkel, who is of course free to support him or not. Merkel’s interests are well served by this. She keeps the options open, and avoids having to explicitly back either lobby. At the same time, it rules out either the two social democrats, or else Schäuble plus one of them, ganging up on her to commit Germany to some policy of their own. I would therefore cautiously discount some of Schäuble’s bluster in front of journalists.

Hamburg

It’s probably worth keeping an eye on German elections at the moment. Hamburg voted today, and the results below will update as more results come in, via Der Tagesspiegel. Basically, the SPD won big but will need a coalition partner, probably the Greens, the FDP and the Left had a respectable showing, the AfD version of the far-Right just, just scraped into a western German parliament for the first time, and the CDU had a nightmare, literally their worst result ever.

Click on “Gewinn/Verlust” for the changes in % terms – the CDU lost 5.9%, the AfD picked up 5.8%. Ouch. But most of all, the Non-Voter Party had a great night, picking up 44.5% of the vote.

On that score, I expect the main effect to be “That’s over with now” rather than “Chase the AfD”.

The AfD trolls itself.

Strangely, different extreme-right groups are falling out among themselves at the same time, in that odd synchronicity European politics occasionally has. After UKIP’s pre-Christmas train-crash over candidate selection, here’s the AfD tearing itself apart over policy.

Das Schreiben unterstellte Lucke auch, er stehe in vielen Fragen den Grundanliegen der AfD-Basis entgegen. So habe er sich geweigert, „gegen das Gender-Mainstreaming zu agitieren“, weil das Internetlexikon „Wikipedia darunter die Gleichstellung der Geschlechter definiert – und das ja eigentlich gut sei“. Außerdem habe Lucke im Europaparlament für Sanktionen gegen Russland gestimmt und er habe vorgehabt, in einer E-Mail im November allen Parteimitgliedern den Austritt nahezulegen, die „kritisch über Zins- und Zinseszins, das Geldsystem oder eine goldgedeckte Währung, über den Einfluss amerikanischer Banken auf die Politik oder die Souveränität Deutschlands nachdächten“.

It turns out Herr Lucke has been banned from responding to their own internal trolls, for fear he would cause too many resignations. Anyway, an AfD troll is obsessed by “gender mainstreaming” (perhaps they want to be like the French but copy-pasted wrong?), the gold standard, bankers, Russia, and “interest and interest on interest”. For clarity, they’re agin interest, bankers, and gender, but fer gold and Russia.

Wolf Biermann trolls the Bundestag

So the German parliament invited legendary songwriter, dissident, and wonderful professional malcontent Wolf Biermann to the session celebrating 25 years since the revolution. That went as badly as you might expect, or perhaps as well.

Where do we start here? Obviously there’s the bit where he calls the Left Party MPs the “wretched remnants of everything we so fortunately overcame”. There’s the speaker of parliament, the CDU’s Norbert Lammert, a man who looks and talks exactly like a conservative called Norbert, who calls him to order on the grounds that he was invited to sing, dammit, and if he wants to speak he can always get elected. Biermann remarks that the DDR didn’t manage to shut him up and Lammert won’t.

While this goes on, the breaking news caption informs us that the association of the post-1945 expellees is electing a new president. Geschichtsträchtig.

There’s the performance itself, as if the rest wasn’t part of the performance. And then there’s the bit where Lammert tries to make up for it by congratulating Biermann on his silver wedding, and Biermann breaks off from chatting (does he chat? I rather think not) with, or at least to, Sigmar Gabriel to remind him that it’s also the anniversary of the great, socialist October Revolution, as he puts it.

Even if Lammert’s intervention might not have been wholly serious, it’s a masterpiece of awkwardness. As well as a guitarist of note, a brilliant lyricist, and an unmistakable voice, Biermann is one hell of a troll.