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Parliament suspends Merz, chancellor is ousted, alleged betrayers pursued, stock exchanges shut down.

CDU Leader Faces Possible Defeat in Second-Round Vote; President Klöckner's Role Remains Unclear

Germany's Bundestag Shocks with Merz Rejection

The Shocking Surprise

Parliament suspends Merz, chancellor is ousted, alleged betrayers pursued, stock exchanges shut down.

The hallowed halls of the Bundestag are bursting with political heavyweights, an assembly usually reserved for momentous occasions. But the election of Christian Democrat Friedrich Merz was a spectacle that didn't go as planned. Merz's bid for the top spot didn't manage to gather the required votes during the first round. With 316 votes needed to clear the first hurdle, the newly formed Cdu-Spd coalition could rally only twelve more votes than the majority, totaling 630 deputies. Merz fell short, amassing 310 yes votes, just six votes shy of the mark. Three abstained, and one vote was nullified.

Behind Closed Doors

Following the initial setback, negotiations between leaders of the Union and the Spd ensued in the Cdu-Csu parliamentary group's office. Friedrich Merz, head of the Cdu, and Lars Klingbeil, leader of the Spd, attended the closed-door meetings but remained tight-lipped about the outcomes. Reports from Berlin indicate that President of the Bundestag, Julia Kloeckner, has scheduled another round of voting for tomorrow, Wednesday.

Yesterday's Disagreement

In all of the Federal Republic of Germany's history, it has never occurred that a Chosen Chancellor did not secure a simple majority in the first ballot. If Merz fails to achieve the majority in the third round, the role of Federal President, Frank-Walter Steinmeier, becomes critical. It is his duty to either appoint the candidate to lead a minority government or to dissolve the Bundestag and call for new elections.

A Bitter Pill to Swallow

Recent weeks have seen two main issues rock the Cdu and Spd: an unexpected debt-friendly stance, which has unsettled the conservative base, and the Afd dossier, causing concern among social democratic deputies. Today's abstention may have played a part in this turmoil. The future Chancellor now faces two pivotal duties: resurrecting the moribund economy and altering the immigration policy's pace. Can these contentious issues be separated? Will a strengthened border control prevent the reoccurrence of border mobility issues experienced during the Covid-19 crisis? Will a policy of migrant repatriation appease border partners without invitation irritation, as occurred after Austria and Poland's announcements? These questions linger in the minds of powerbrokers in Berlin.

The Economy Needs More Than Just One Fix

A boost for the economy will require more than just the proposals outlined in the coalition agreement. Deep reforms of health insurance, pensions, and mortgage interest rules, as well as parental leave for mothers who have stayed home to raise their children, are being discussed. However, these adjustments might not suffice to revive the sluggish economy. Sensitive dossiers like these are rarely touched, especially those involving the social democrats, but staying clear could mean ignoring the impending aging of European nations.

Frankfurt Takes a Hit

The Frankfurt Stock Exchange saw losses widen after Merz's failure to secure a majority. The Dax index plummeted 2%, making it the biggest loser among European stock exchanges. The uncertainty surrounding the future government's spending plans on infrastructure and defense, which investors had relied upon, is believed to be the cause of this decline. The yield on Bunds increased 3 basis points, settling at 2.54%, in line with other eurozone government bonds.

Reactions from the Fringe

Alice Weidel, leader of the AfD, urged Merz to step aside and pave the way for new general elections. "This is the first instance where something good happens because an electoral fraud of this magnitude cannot occur, and one cannot become Chancellor this way," she asserted.

Valerie Hayer, leader of the liberal EU group, expressed concern about the political instability. "[Europe needs a stable Germany]," she emphasized. "The Franco-German couple must be the driving force behind the changing Europe."

Jan van Aken, a prominent figure within the left-wing formation, criticized Merz, stating, "He failed to unite and instead divided."

Renegotiating the Vote

Engaging in a race against time, the leaders of the parliamentary groups from the Cdu-Csu, the Sdp, the Greens, and Die Linke are negotiating an expedited deadline for another round of voting. Sources suggest that this agreement is necessary to ensure the vote takes place on Wednesday instead of Friday, requiring a two-thirds majority. Merz, it seems, plans to run again, with overwhelming support from his parliamentary group.

  1. The Christian Democrat, Friedrich Merz, did not receive a simple majority in the first round of voting in the Bundestag, requiring a further round of voting.
  2. The Democrats, both from the Cdu and Spd, are currently in negotiations to expedite another round of voting, aiming to hold it on Wednesday instead of Friday.
  3. Reports indicate that if Merz fails to secure a majority in the third round of voting, the role of Federal President, Frank-Walter Steinmeier, would become critical, as he would either have to appoint a minority government or dissolve the Bundestag and call for new elections.
  4. The failure of Merz's bid for Chancellor and the ensuing political instability may have significant implications for policy and legislation regarding health insurance, pensions, mortgage interest rules, parental leave, immigration policy, and infrastructure spending, as these issues are now at the forefront of political discussions in the Federal Republic of Germany.
CDU leader falls short in initial round, seeks second vote; President Julia Klöckner may face potential challenges.

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