German President, Horst Köhler, abruptly resigned this week over his suggestion that it would be economically advantageous for the German army to become involved in more international military conflicts.
During a radio interview given after he toured Afghanistan last month, Mr. Köhler announced that he thought the German nation had to be prepared to come out of its pacifist state. The President believed that it would help the country “protect our interests, free trade routes, or to prevent regional instability, which might certainly have a negative effect on our trade, jobs and income”.
The German far-left immediately seized upon the comments. As a member of Angela Merkel’s Christian Democrats, the President had managed to stay above the conflict within the German parliament that has erupted in recent weeks. He has subsequently been accused of advocating “gunboat policy” and of betraying those troops already stationed in Afghanistan.
However, the former President’s office maintains that he had been referring to the possibility of troops safeguarding trading routes in the Indian Ocean. The opposition has ridiculed this statement; the interviewer’s question directly concerned Afghanistan.
The resignation of Mr. Köhler, the former Head of the International Monetary Fund, will come as a huge blow for Mrs. Merkel, the German Chancellor. Currently facing calls for her to step down following growing criticism over her lack of political leadership, her ratings have hit a four-year low.
Mr. Köhler has become the first President in post-war Germany to resign with immediate effect. As the strongest economic power in the European Union, Mrs. Merkel is now faced with an extremely challenging task. She has recently faced criticism from the European media for her stance on the German role in the Greek bailout, and caused further controversy for banning short trading. As long as short trading remains legal outside of Germany, the impact of banning the act can only ever have detrimental effects for the long-term economic prosperity of the country.
Mrs. Merkel now has to fight for her leadership as she has never had to before. She has already admitted that what she will miss most about Mr. Köhler is his advice about financial issues. In the immediate media storm that followed her announcement on short trading – not to mention Nicholas Sarkozy’s threat to pull out of the Euro if she didn’t support the bailout – the Chancellor has had to combat claims that she is economically unaware. As long as she had the President to fall back on, her critics could be mostly calmed.
Mr. Köhler’s resignation could be the beginning of the end for the Chancellor. While Germany is currently an influential economic power, the interest rates of the Euro could mean another European bailout within a year. The way in which she deals with this, without the expert advice of an international banker, will decide whether or not she can remain the first female Chancellor of the German nation. But the President’s comments could not have come at a worse time: a war looming in Korea, conflict in Gaza and an ongoing commitment in Afghanistan will have devastating impacts on the global economy.
