German economics professors see only minor differences between the right-wing CDU/CSU and left-wing SPD in many policy areas, according to the latest Economists Panel jointly conducted by the ifo Institute and the Frankfurter Allgemeine Zeitung.
German economists find few policy differences between the two parties in areas like fiscal policy and taxes, the environment, as well as family and educational policy. In the labour market a good 40% of survey participants see major differences between the CDU/CSU and the SPD, while a third see differences in fiscal policy, and a quarter see difference in national security, family and health policy.
“The results are clear,” according to Niklas Potrafke, Director of the ifo Center for Public Finance and Political Economy. “This should inspire the SPD and the CDU/CSU to set out their positions with greater clarity instead of constantly pandering to public opinion,” he added.
Most of the economics professors surveyed cited the main reason for the growing similarity between both parties as their orientation towards centrist voters. For 59% of survey participants, clearly perceptible differences between the positions and policies of the main political parties are “important to the stability of democracy in Germany,” while 34% disagreed with this view.
Two thirds of the economists polled believe that the rise of the AfD (extreme right wing) is related to the growing similarity of Germany’s two mainstream political parties. Just short of an absolute majority of survey participants stated that the growing fragmentation of the party political landscape in Germany could negatively impact the implementation of reforms. The majority of economists surveyed, however, do not favour more direct democracy: 52% were opposed to taking Switzerland as a model, while 42% were in favour. Almost all survey participants rejected the idea of directly electing the German Chancellor.
In their comments on the survey several economics professors expressed disenchantment with the mainstream political parties. The new Bundestag will be “increasingly fragmented, because the established parties have shown too little awareness of emerging problems”, according to Wolfgang Buchholz, University Regensburg.
Others like Gert Wagner, Technical University of Berlin, warned that excessive polarisation could be dangerous. David Stadelmann, University of Bayreuth, supported the idea of more direct democracy. Countries with more direct democracy enjoy greater prosperity, a more efficient state, lower government deficits and lower debt levels.
A total of 130 economists took part in this ifo survey, that coincides with the Eurozone Economic Outlook on Wednesday, while the ifo Business Climate Index for Germany is on Monday, September 25, the day after the elections.
