German Federal Elections 2013

 

Many experts have opinion that these problems will be postponed until the worst times, as the whole EU integration is an extremely long process.

 

 

 

5. Impact on Business

 

Changes in political program also means changes in the country’s economy. Germany is very economically strong country, but still some changes are worth paying attention to, as they directly influence the businesses existing in the country. The changes and their influence points are listed below:

 

• Financial markets almost did not react to election results in Germany and the possible continuation of the Board Angela Merkel. Stock exchange as well as the value of euro did not react dramatically to any direction after the election results. Economists explain the following tendency by saying that this result was expected and everyone was ready for it. Thereby it might be seen at first that dramatic changes will not affect the entire EU economy, which has a definitely positive impact into business predictability. However, if we look deeper, the situation is much more difficult that it can seem. One of the main external purposes of Germany was the help to the Southern European countries’ economies, which suffered from euro crisis in the highest degree. Nevertheless, Merkel proposed very tough conditions for returning the money for these countries. This fact casts doubt on the ability of the countries to repay the debt that can lead to the misbalance in Europe and, certainly, negatively affect the businesses area also, particularly import and export of goods from country to country.

 

• As it has already been stated above, the new Grand Coalition cooperative program includes fixing the wages for German employees. This, without any doubt, will also affect businesses.

 

• It is a well-known fact that in Western Germany temporary employees have higher wages than temporary workers in Eastern Germany. People, who live in less-developed Eastern Germany, usually complain about the wages due to the fact that cost of living is much higher. The situation is about to change as the Social Democrats and Angela Chancellor Angela Merkel's Christian Democrats agreed to negotiate to form a coalition government if the CDU agrees on a federally mandated minimum wage. Angela Merkel traditionally supports minimum wages that varies in different regions and occupations (employment sectors) in order to protect small business. The opponents, however, claim that workers who work full-time have rights to live on what they earned, on their salaries. Moreover, the leader of the German Trade Union Federation’s Minimum Wage Campaign, Claudia Falk says that the placed minimum wage would help to reduce costs to the states, while benefiting the economy by increasing the consumer spending. Consumer spending means increasing revenues of the businesses also, which positively influences the country’s economy also.

 

• Family businesses are one of the main “bricks” of German economy. Helping other countries’ economies means effects to Germany itself. As it has already been stated above, Merkel always defends the country’s national interests and she does not want to anyhow harm the economy of Germany and the businesses of German people as a result.

 

• It is also assumed that the export of German goods will increase in recent time to the Europe and large corporations, such as BWM, Audi and VW will especially take advantage of the following change. This assumption is supported by the facts, because these companies have experienced operation into international markets and do have a great amount of export already and power and possibilities to grow.

 

 

Generally speaking, the entire business environment will not be seriously affected by the results of the German elections as the outcomes were more-or-less predictable and thereby the businesses had a chance to act accordingly.

 

 

 

 

 

6. Conclusion

 

Germany Elections and the outcomes have a direct impact not only on the Domestic market but on the Entire EU as well. The fact that Germany has one of the strongest economic system and, generally speaking, stands as a main driver behind the revival of the European economy, supports the value of the election procedure. As all reforms come downwards from the Government, it is the government who selects the direction for the country. However, if the focus is on Germany, it might be assumed that direction will be set for the Entire European union as well. The thing, which is left is hope - hope that Angela Merkel and her coalition will do their best in order to prevent the potential repetition of the crisis and bring the Europe into advanced economic level.

 

 

 

 

 

SOURCES		http://www.zerohedge.com/news/2013-09-13/german-feder..   http://www.theguardian.com/commentisfree/2013/sep/17/..   http://www.rogerdarlington.me.uk/Germanpoliticalsyste..   http://www.tatsachen-ueber-deutschland.de/en/politica..   http://www.infoplease.com/encyclopedia/world/germany-..   http://www.infoplease.com/encyclopedia/world/germany-..   http://www.youtube.com/watch?v=LLXEOzucqvk   http://www.goethe.de/wis/bib/pro/hig/Education_and_Cu..   http://www.bundestag.de/htdocs_e/bundestag/committees..   http://www.bundesrat.de/nn_11004/EN/funktionen-en/go-..   http://www.bundestag.de/htdocs_e/bundestag/committees..   http://www.theguardian.com/world/2013/sep/22/germany-..   http://www.economist.com/blogs/charlemagne/2013/09/ge..
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		http://www.dw.de/clear-victory-for-merkel-but-uncerta..
		http://edition.cnn.com/2013/11/27/world/europe/german..
		http://www.theguardian.com/world/2013/nov/27/angela-m..
		http://www.bbc.co.uk/news/world-europe-25116115
		http://europesworld.org/think-tanks/the-german-electi..
		http://expert.ru/2013/06/26/universam-dlya-vseh/
		http://rbctv.rbc.ru/archive/nemcova_vz/56294998904787..
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		http://poslezavtra.com.ua/evropejskie-posledstviya-ne..

 

 

Appendices have their own style:

Appendix 1

 

TITLE OF APPENDIX

 

There is no numbering on the Appendix pages.

 

 

 

 

 

 

 

1 http://www.bundestag.de

2 http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/08-2/German%201.jpg

3 http://www.businessdictionary.com

4 http://ipc.sabanciuniv.edu/wp-content/uploads/2013/11/2013-German-Federal-Election-Policy-Brief.pdf

5 http://expert.ru/2013/06/26/universam-dlya-vseh/

6 http://rbctv.rbc.ru/archive/nemcova_vz/562949989047876.shtml