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ANGELA MERKEL

ANALYSIS: Are Germans questioning Merkel’s legacy?

In her first major speech since leaving office, Angela Merkel called Russia’s invasion of Ukraine “barbaric.” But the former Chancellor has been criticised for enabling Vladimir Putin while in office. Will German public opinion on Merkel turn?

Olaf Scholz and Angela Merkel
Chancellor Olaf Scholz (SPD) hands flowers to former chancellor Angela Merkel as she leaves office. Photo: picture alliance/dpa | Michael Kappeler

The same week she left office this past December, Angela Merkel was Germany’s most popular politician. Leaving with flowers and a 68 percent approval rating, she was one of the few politicians – in any country ever – to successfully engineer a graceful exit from politics on her own terms.

Six months on, Christian Democrat Merkel has mostly kept quiet. On June 1st though, she finally gave her first public speech since leaving the Chancellery. Speaking at a farewell event for the President of the German Trade Union Confederation (DGB), Merkel came out in support of the SPD-led coalition government’s response to Russia’s invasion of Ukraine, as well as the international efforts the US, NATO, G7, and UN are taking to stop Russia’s “barbaric” war.

“My solidarity goes to Ukraine, which has been attacked and invaded by Russia, and to supporting their right to self-defence,” she said. “We should never take peace and freedom for granted.”

Ukraine criticises Merkel’s record

Merkel left office telling Germans to expect a period of silence from her. She maintained she wouldn’t be taking many speaking engagements for a while and would instead focus on writing a memoir of her key political decisions. True to the understated and humble style both Germans and foreigners know her for, she maintained she would mostly write it herself, without a ghostwriter, with help only from her longtime assistant Beate Baumann.

Angela Merkel (CDU) attends a vote to elect the new German President in Feburary in Berlin

Angela Merkel (CDU) attends a vote to elect the new German President in Feburary in Berlin. Photo: picture alliance/dpa | Christophe Gateau

Before her speech, she made just one short public intervention, defending her decision to keep Ukraine and Georgia out of NATO during a summit in April 2008. That decision is just one of many German choices Ukrainian President Volodymyr Zelensky says emboldened Russian President Vladimir Putin to invade his country. Zelensky has levelled sharp criticism at Merkel personally, for everything from her NATO decision to her support for Nord Stream 2, the now cancelled pipeline that would have delivered Russian gas directly to Germany.

“I invite Ms. Merkel and Mr. Sarkozy to visit Bucha and see what the policy of concessions to Russia has led to in the last 14 years,” he said in April, referring to the systematic massacres Russian soldiers conducted in a town near Kyiv.

READ ALSO: Clouds over Merkel’s legacy as Russian invasion lays flaws bare

German Public cools on Merkel’s policies

While there’s no indication in polls conducted so far that Germans blame Merkel for Russia’s invasion of Ukraine, recent surveys show that many now support reversing some of her most key decisions.

During Merkel’s tenure, Germany became dependent on Russia for over half its natural gas imports. The Nord Stream 2 pipeline she supported, if it did become operational, would likely have only added to that dependence. Before Russia’s invasion of Ukraine, ordinary Germans were generally in agreement, with 60 percent supporting Nord Stream 2’s completion. But more than 75 percent now say they want independence from Russian energy, either immediately or step-by-step over the next few months.

Beyond Russia, the German public now seems to want a more distant relationship with another authoritarian country Merkel tried to build closer economic ties with – 83 percent of Germans want the country to gradually become less economically dependent on China.

READ ALSO: An era ends: How will Germany and the world remember the Merkel years?

Merkel hasn’t yet set a release date for her book, but as Russia wages war in Ukraine, a sizeable number of Germans now look prepared to break with some of her most consequential decisions. 

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Kindergeld and tax relief: How Germany’s planned 2025 budget could affect you

After tough and drawn-out negotiations, the German coalition reached a draft agreement on spending for next year. Here's what we know so far.

Kindergeld and tax relief: How Germany's planned 2025 budget could affect you

Speaking to reporters on Friday, Chancellor Olaf Scholz, of the SPD, looked buoyant even with no sleep. 

The Social Democrat had pulled an all-nighter along with his coalition colleagues. Luckily it resulted in a solid outcome. 

The SPD, Greens and Free Democrats (FDP) have finally struck a deal on the 2025 budget – a topic that has been haunting the government for weeks, even months. 

In a press conference held alongside Economy and Climate Protection Minister Robert Habeck and Finance Minister Christian Lindner, Scholz said: “We have not always made it easy for ourselves. We are fighting hard for the cause and we are looking for compromises.

“Sometimes half the night. Sometimes all night.”

He said that ministers pushed through on negotiations in order to “present a draft budget today punctually at the end of this week of meetings”.

By doing so, the coalition has avoided a major breakdown that may have toppled the government. 

So what does this initial agreement mean and what’s actually in it? Many of the details are still to be finalised, but here’s a look at key points so far with some more details below:

READ ALSO: German coalition strikes breakthrough budget deal after crisis

The debt brake stays

The infamous debt-brake (Schuldenbremse) – a self-imposed cap on annual borrowing – will be adhered to. A decision that shows Finance Minister Lindner got his way.

The government plans to take on €44 billion in new debt next year, in compliance with debt brake limits, which would bring Germany’s total budget volume to about €480 billion. The debt brake means there are likely tough decisions and cuts in the coming years. 

The debt brake was a key sticking point in the talks. Germany suspended the mechanism for several years during the Covid-19 pandemic and the inflation shock which followed Russia’s full-scale invasion of Ukraine.

The centre-left Social Democrats in particular – who are the largest party in the coalition – pushed for the debt brake to be suspended in order to push for more investment into society and fewer cuts, but Lindner was keen to see it reinstated.

Clashes over the debt brake intensified after the constitutional court threw Germany’s spending plans into disarray last November in a ruling over spending. 

German Finance Minister Christian Lindner, German Chancellor Olaf Scholz and German Minister of Economics and Climate Protection Robert Habeck arrive to deliver a press conference on July 5, 2024 in Berlin, after the three parties in Germany's ruling coalition struck an agreement on the 2025 budget.

German Finance Minister Christian Lindner, German Chancellor Olaf Scholz and German Minister of Economics and Climate Protection Robert Habeck arrive to deliver a press conference on July 5, 2024 in Berlin, after the three parties in Germany’s ruling coalition struck an agreement on the 2025 budget. Photo by RALF HIRSCHBERGER/AFP

Focus on children and families

A family package is a big part of the draft budget. 

Kindergeld – Germany’s child benefit – is to be increased by five euros next year, as is the emergency child allowance for families who need it, according to German media reports. 

The payments will be phased out with the introduction of basic child security or Kindergrundsicherung, and parents in Germany will then receive €255 per month per child. 

The Kinderfreibetrag – or tax-deductible sum for children – is also to rise by €228 to €9,540 in 2025 and will go up a further €60 the following year.

The government said the law would continue to ensure that child support keeps increasing in future. 

A further €2 billion will be invested from 2025 to 2026 to improve the quality of childcare facilities. 

Tax relief and pensions

People in Germany are to receive around €23 billion in tax relief in 2025 and 2026, in a bid to make sure inflation doesn’t eat up wage increases. 

As part of a so-called ‘growth initiative’ there are to be further tax improvements for companies and the self-employed as well as employees. A tax exemption on overtime hours is one idea being discussed. 

It’s also planned that skilled workers coming from abroad will receive tax relief to make Germany a more attractive option. 

READ ALSO: 8 unlikely tax breaks in Germany that international residents need to know

More support for private investments and support for small firms is also planned in a bid to encourage more people to do business in Germany. 

Meanwhile, the coalition pledged to agree on a “clear timetable” for the planned pension reform. 

Boost for the economy

Under the plans, the government is vowing to invest more in the economy in a bid to modernise the country. Investment spending is set to reach a new record level of €57 billion, with money to be set aside for various things including railways, roads, local transport and digital infrastructure.

The initiative agreed during the budget consultations is expected to increase economic growth by 0.5 percentage points in the coming year.

ICE trains

An ICE train at Berlin’s main train station. Photo: picture alliance/dpa | Hannes P. Albert

Labour market bonus 

People receiving long-term unemployment benefits (Bürgergeld) are to receive additional bonus when they enter the labour market.

The coalition has summarised this as a “bonus model” to combat unemployment.

In order to make Germany more attractive as a business location, foreign skilled workers are to receive a tax rebate for the first three years. 

Billions for the Bundeswehr and social housing 

In terms of security policy, the traffic light coalition wants to fulfil NATO’s two percent target of investment every year. According to Scholz, the defence budget should reach €80 billion in 2028. The police, technical relief organisation and civil protection are also to be strengthened.

In addition, over €20 billion is to be invested into social housing across Germany by 2028.

The planned funding for climate and transformation has been secured for 2024 and 2025.

“This budget contains record investments,” said Scholz.

“In times characterised by unrest due to Russia’s barbaric war on Ukraine, unrest due to the climate crisis and unrest due to irregular migration,” said Scholz.

Less bureaucracy 

Another key point of the draft budget is reducing paperwork. 

“Companies and citizens alike are suffering from ever more bureaucracy, with official procedures taking far too long,” the coalition partners wrote in the draft budget. They are pledging to introduce measures to ensure things move more quickly in Germany in future. 

What happens now?

The next step following this initial agreement is for the party leaders to inform their parliamentary groups. This will be followed by budget discussions in the respective departments – and this could lead to yet more heated debates and adjustments.

According to the current schedule, the government wants to approve the draft budget in the cabinet on July 17th. It will then be discussed in the Bundestag after the summer break and, if all goes to plan,  adopted at the end of November.

With reporting by AFP 

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