Coalitions in Germany and NZ

Three weeks after the Bundestag election in Germany and the discussions between CDU, CSU and FDP continue. It is still not clear what the exact policy directions of the new coalition government will be, or who will occupy which ministerial/government posts.

I see an interesting difference in the coalition bargaining between the parties and what has gone on in NZ after MMP elections since 1996.

The German parties are driving hard bargains. Both the CSU and FDP are sticking to their guns and placing demands on Merkel’s CDU that they make concessions so the smaller parties honour their pre-election commitments. There have been several examples of this as the discussions have gone on, for the FDP most notably in measures protecting personal privacy.

But as predicted, the big one sticking point is tax cuts: both smaller parties want them, the CDU knows they can’t really afford them. Merkel doesn’t want to be seen as fiscally irresponsible and run large deficits just to finance tax cuts (and the CSU will not allow this anyway). The result is a sort of Mexican stand-off. This has been going on for weeks. It has finally been decided that there will be tax cuts, the question is how big they will be.

The important point here compared to NZ is that the coalition bargaining is very detailed, and very contested. I am not an expert on NZ’s coalition agreements, but NZ moved away from both these aspects after the first experience with coalition government in 1996.

Then, Winston Peters and NZ First undertook to draw up a coalition agreement which set out most important policy directions in writing. Peters drove such a hard bargain that he was seen to be holding the country to ransom, and the discussions took so long that the country was without an effective government for two months. NZ First ended up going with National, which was the opposite of what they had alluded to pre-election. The coalition didn’t last very long, and neither did NZ First’s (or MMP’s) popularity.

Since this negative experience with detailed, drawn-out coalition bargains NZ has moved to a more flexible approach based on agreements on confidence and supply (settling other issues on a more ad-hoc basis), which would seem to be more in keeping with the country’s Westminster/common law tradition. Helen Clark’s Labour did this with the Greens in 1999/2002 and with NZ First/United Future in 2005. John Key has a similar confidence and supply agreement with ACT, United Future & Maori Party.

The Germans, however, seem happy to persist with longer, more contested coalition bargaining phases in which major policy issues are hashed out in detail after the election. This is more in line with the German tradition of constitutional consensual government, and the German civil law.

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