Tag: German Empire

(Repeats without change) * Deutsche Bank in merger talks with state-backed rival * German coalition partners divided on supporting deal * State could be called on for funds or guarantee - official By John O’Donnell and Michael Nienaber BERLIN, March 21 (Reuters) - A political rift has emerged in Berlin over whether Germany should put its financial muscle behind a merger of Deutsche Bank and Commerzbank, politicians and officials said, complicating a bid to create Europe’s third-largest bank and fund it. But a dispute is unfolding between the two political parties who govern Germany in coalition, a row that could reduce political momentum for a deal and derail any future agreement on whether or how Berlin should financially underpin a merged group. One senior German official said that Scholz, a Social Democrat, had “gone it alone” in pushing for the deal without first securing the backing of Christian Democrats (CDU) in the coalition. That official, who asked not to be named, said some Christian Democrats opposed Scholz’s drive because it could involve the state giving a guarantee on funding or contributing to a capital increase for a merged bank. Scholz was the first to publicly reveal the merger talks earlier this month but he has since sought to distance himself from the process, insisting it is up to the companies to decide. A spokesman said Scholz had “not voiced any position on the merger talks”, declining to comment on possible future government action. But his stance and the idea of merging the banks have prompted criticism. Through its stake in Commerzbank, the German government would become a top shareholder in a merged group, playing a central role in any fusion. Gains by the far-left and far-right in Germany have undermined its traditionally consensus-driven politics, with the SPD and CDU now trying to establish a clear distinction between each other. Merkel, who will have the final say in Berlin on whether the government should openly support a merger, has kept her cards close to the chest.

But is the crisis really over? The superficial explanation for the crisis is that the C.S.U., facing state elections in October, wanted to shore up its conservative base against the far-right Alternative for Germany party, known by its German initials A.f.D. But this crisis is about much more than that. According to the Dublin Convention, which regulates which country is responsible for examining an asylum seeker’s plea for protection, the first country a migrant enters is in charge. However, many migrants don’t stay in those countries but move on to the north of Europe. According to figures by the German Federal Agency for Migration and Refugees, only about a quarter of those applying for asylum in Germany in 2018 are already registered in another European country. In a sane and sound political system, threats to blow up governments and force new elections are reserved for the truly momentous disputes; small things are resolved through compromise. On the political level, however, the strategy worked. The result is not a true “European” fix, as the chancellor claims, but a jury-rigged workaround: more external border controls for Germany, and bilateral agreements between Germany and some countries of first entry to take back secondary migrants. So whatever deal is sealed this week, the political crisis over refugees is not over.