Before Zee Germans Get Here, Part 3

The Merkel coalition government in Germany is starting to look a bit on the wobbly side, thanks to Austerity Hysteria.

Criticised at home and abroad for mishandling the euro crisis, Merkel's latest political headache is the four-year €80bn (£67bn) austerity package passed last week in an attempt to reduce Germany's deficit. Many of Merkel's own CDU MPs fear a voter backlash after growing criticism that the cuts are socially imbalanced. Almost 80% believe the cuts to be socially unfair, while 67% want an increase in the top rate of tax, which Merkel has strongly resisted. Public anger at the package spilled over at the weekend when thousands of demonstrators took to the streets.

The package has also stoked the anger of Merkel's French counterpart, Nicolas Sarkozy, who has accused the Germans of creating an atmosphere that will stifle growth in Europe at a time when it should be stimulated. Sarkozy arrived in Berlin for talks with Merkel tonight – a meeting which the German leader cancelled at the last minute a week ago, adding to speculation that relations between the two politicians are at an all-time low.

The recent departure of CDU heavyweight Roland Koch, the state premier of Hessen, and the unexplained resignation of Horst Köhler, another CDU man, from the post of president have also left Merkel looking increasingly exposed. Two further ministers have covertly expressed their desire to quit Merkel's government, including its most popular politician, defence minister Karl-Theodor Guttenberg of the CDU, who has faced a backlash over his attempts to scrap compulsory military service, and Philip Rössler, the FDP health minister, whose efforts to reform the health system have been rejected by parts of the bickering government.

The chaos has led commentators to refer to Merkel's administration as a "constipated institution". Writing in the Süddeutsche Zeitung, commentator Daniel Brössler said: "Governments need to be steered, but the Merkel cabinet is no longer steering. It resembles a car where the only thing that's working is the brakes."

Even the Germans understand that austerity right now is a load of crap.  It's not going to work in Greece, it's not going to work in Britain, it's not going to work in Germany, and hey, guess what?  It won't work here in our consumer-driven economy.  If Cameron really is going to make the kind of cuts I think he is, I don't see his coalition lasting much longer either.

The people can see it coming a mile away, and it won't work here either.  The second you start messing with Medicare, Social Security, and start saying "corporate tax cuts" on top of that, you're going to have riots on your hands.

Let's not go there.  It is a silly place.