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ANGELA MERKEL

What do Germans think of Merkel a year after her departure?

Angela Merkel left the German chancellery on December 8th, 2021 at the height of her global stature. Twelve months on, it is hard to find a more precipitous drop in popularity and prestige in modern European politics.

What do Germans think of Merkel a year after her departure?
Former German Chancellor Angela Merkel speaking at an event to mark the 77th anniversary of the Süddeutsche Zeitung in October 2022. Photo: picture alliance/dpa | Sven Hoppe

The offices accorded to the former leader are in view of the Russian embassy, where since the Ukraine invasion in February Berliners regularly leave signs and flowers protesting the war.

Long called the world’s most powerful woman, Merkel these days has pulled back from the spotlight, working on her memoirs and enjoying the occasional television series, such as “The Crown”, which tells the story of Queen Elizabeth II’s turbulent decades on the throne.

But in many quarters the broad German support she once enjoyed as a staunch defender of Western liberal values has curdled.

“One year on, the world is in flames, Russia invaded Ukraine, gas and  petrol prices are through the roof and Germany fears the winter,” wrote Der Spiegel magazine’s Alexander Osang, a longtime Merkel confidant.

“Angela Merkel went from role model to culprit, from crisis-manager to crisis-causer.”

Invitation to Bucha

Germany’s first female chancellor has been accused of placating Russian President Vladimir Putin in the name of realpolitik, while deepening Germany’s energy dependence on Moscow — not least by backing the Nord Stream 2 gas pipeline project even after Russia’s 2014 annexation of Crimea.

READ ALSO: Merkel says no regrets over Germany’s Russia gas deals

Hedwig Richter, modern history professor at Munich’s Bundeswehr University, said Merkel‘s loss of standing had been “exceptional”, representing a generation of political failings.

“Amorality is not the same thing as realpolitik,” Richter told AFP.

“The governments of the last 16 years thought it was realistic to place values such as human rights and climate protection last in politics. But now reality is striking back.”

Ukrainian President Volodymyr Zelensky has laid the blame at Merkel‘s feet, in particular for a decision at a 2008 NATO summit in Bucharest not to admit his country to the alliance.

In April, he offered her a barbed invitation to Bucha, the site of an alleged massacre of Ukrainian civilians, “to see what the policy of concessions to Russia has led to in 14 years”.

Looming energy shortages due to Russian retaliation for Western sanctions have also soured the mood against Merkel at home.

In the public debate, “Merkel was tied up with this war and certainly to blame for the missing gas”, said Nico Fried, who covered Merkel during all four of her terms, in Stern magazine.

“The question is what remains of Merkel after 16 years, whether her historical portrait is already fading before it was even really framed.”

‘Horribly neglected’

Just 23 percent of Germans would want Merkel back in power, according to a Civey institute poll in late November.

READ ALSO: ANALYSIS: Are Germans questioning Merkel’s legacy?

In this file photo taken on November 10, 2021 then outgoing German Chancellor Angela Merkel and then German Finance Minister and Vice-Chancellor Olaf Scholz attend a press conference to present the annual report of the German Council of Economic Experts (Wirtschaftsweise) in Berlin. (Photo by Kay Nietfeld / POOL / AFP)

Richter said Merkel had “great achievements” including allowing in more  than one million asylum seekers and standing as a beacon of “decency” and  “democratic duty” when strongmen like Putin and Donald Trump were on the march.

But she said two key miscalculations would cast a long shadow.

“Firstly, the inability of the (German) republic to defend itself. And because this is closely linked to the fossil-fuel dependence on Russia, it threw a spotlight on destruction of the planet,” she said.

“The Merkel governments horribly neglected both these issues.”

Merkel, 68, has mounted a tentative counter-offensive, arguing that she acted in good conscience given the facts on the ground at the time.

She said she tried to use Nord Stream 2 as a bargaining chip to ensure Putin respected the 2015 Minsk accords aimed at stopping the fighting in Ukraine.

Merkel told Fried she pledged to US President Joe Biden last year that if Russia invaded Ukraine, the pipeline deal would be scrapped — a threat her successor Olaf Scholz made good on days before the war began.

Osang noted the irony that “Putin of all people, whom she has known so well and long, with all his tricks, lies, bragging” had muddied her reputation.

One of Merkel‘s lessons from the fall of the Berlin Wall in 1989 that it was “economic, more than democratic, deprivation” that led to the communist system’s collapse.

Osang said this had coloured her approach to trade with China and energy deals with Russia.

She said Scholz’s billions in spending to help Germans facing high gas prices were now justified.

“Not everyone is in a position to freeze for Ukraine,” she said.

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COST OF LIVING

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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