It is difficult to watch the news from Germany since the elections of a month ago. Despite having a true program for economic reform and an opponent which has made the moniker “sick man of Europe” seem like an actual step-up for the German economy, the CDU/CSU has managed to deal away so much in a short period of time. Day one of coalition talks with the SPD saw the CDU/CSU capitulate on a central piece of their election manifesto:

Leaders of Germany’s proposed grand coalition on Tuesday ruled out broad-ranging tax cuts for the next four years, a move that casts doubt on the new government's courage to confront the need for economic reforms.

 

This on day one. Putting aside the economic sanity of tax-cutting measures and looking at purely political aspects of the move, could the CDU/CSU at least had the ability to hold on to this very strong card in order to secure other aspects of the CDU/CSU platform, looks like a ‘no’:

Merkel has had to hand over eight out of 14 ministries to Schröder’s centre-left party. Her plans to delay the phasing out of nuclear power stations, to make it easier for firms to sack workers and to restructure the health service are all expected to founder on SPD opposition.

The Free Democrats sum up the mood:

“To refrain from a clear tax-cutting agenda is a step in the wrong direction. The new beginning that Germans had hoped for is already being negotiated away by the grand coalition,” a party spokesman said.

Let’s hope the CDU/CSU has something up their sleeve besides an arm.