The European Consequences of Germany’s Election

ISTANBUL – Nearly a century ago, in 1919, John Maynard Keynes analyzed the economic consequences of the peace following Germany’s defeat in World War I. To be sure, the consequences of Germany’s general election on September 22 will not be nearly as momentous. But the outcome will not be as inconsequential as most analysts currently claim.

For starters, even if the current Christian Democratic Union (CDU)-Free Democrat Party (FDP) coalition forms the next government, Chancellor Angela Merkel could make longer-term and more courageous decisions without having to worry about the immediate electoral impact. She would be able to pursue a two- or three-year program, instead of her current four-week strategy.