Germany to Become First Country Run by a Former BlackRock Exec

 

Millionaire Merz is a corporate king in conservative clothing

At the ripe age of 69, Friedrich Merz has waited decades for this moment. Ahead of Sunday’s election, he is Germany’s chancellor-in-waiting, with his Christian Democratic Union (CDU) predicted to secure 30% of the vote. He’ll have to cobble together another coalition of disparate parties, but Merz won’t mind. Come Monday morning, he will have completed one of the most remarkable comebacks in recent political history.

Merz joined the party decades ago as a student. But today, he is effectively running on a “Make Germany Great Again” platform — a calculated attempt to win votes from the Alternative for Germany (AfD) by shifting his party to the Right on issues such as immigration. His cynicism here shouldn’t be underestimated: like Donald Trump in America, the millionaire Merz is a corporate king in conservative clothing.

Merz, let’s not forget, has long represented the interests of some of the world’s most powerful corporate and financial elites, most notably as a key representative of BlackRock in Germany between 2016 and 2020. Indeed, if Merz is elected, Germany will become the first country to be ruled by a former BlackRock official. But his ties to elite institutions go back much further: for over two decades, even before joining BlackRock, he embodied the revolving door between politics, business and finance.

After the 2002 federal election, Angela Merkel, the then-leader of the CDU, secured the chairmanship of the parliamentary group, while Merz was appointed as her deputy. Their relationship, however, was far from breezy, and Merz resigned just two years later, gradually withdrawing from politics until he left parliament in 2009. Yet he struck gold even before his departure. In 2004, he was hired as senior counsel by the international law and lobbying firm Mayer Brown, a heavyweight in the industry with an annual turnover of billions.

Here, Merz discovered a far more fruitful relationship. As Werner Rügemer, author of BlackRock Germany, explains, at Mayer Brown Merz helped facilitate deals that promoted the interests of US capital in Germany, encouraging American investors to buy companies in the Federal Republic. The result was the sale and restructuring of thousands of German firms, which involved slashing jobs and freezing wages — an approach openly praised by Merz in his book Dare to Be More Capitalist. No doubt keen to embody his book’s thesis, during this period Merz also sat on the supervisory and administrative boards of several major corporations. And then BlackRock, arguably one of the most powerful companies to ever exist, came knocking. How could Merz say no? Pharmaceuticals, entertainment, media and, of course, war — there is virtually no sector that BlackRock won’t try and profit from.  (more...)

Germany to Become First Country Run by a Former BlackRock Exec