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ANGELA MERKEL

Merkel given Germany’s top honour despite criticism

Former chancellor Angela Merkel received Germany's highest honour on Monday despite facing continued criticism of her legacy since leaving office, especially over her policy towards Moscow.

Merkel given Germany's top honour despite criticism
German President Frank-Walter Steinmeier (L) awards the Order of Merit to former German Chancellor Angela Merkel at the Bellevue presidential palace in Berlin on April 17th, 2023. Photo: John MACDOUGALL / AFP

Merkel, who led Europe’s biggest economy from 2005 to 2021, was presented with the special class Grand Cross by President Frank-Walter Steinmeier on Monday evening.

The longtime leader thanked her family and several former aides for supporting her through her years in power, recalling “many very, very good experiences”.

“People often say what a snake pit politics is. I may say that I would not have survived if it were not for the other side of politics, and that is why I have always been able to enjoy it,” she said.

In a speech before handing over the award, Steinmeier praised Merkel’s “extraordinarily long time in office and… extraordinary political life”.

“For 16 years you served Germany with ambition, with wisdom, with passion,” he said.

Guests at the ceremony included Chancellor Olaf Scholz, European Commission chief Ursula von der Leyen and Merkel’s husband, Joachim Sauer.

The special class Grand Cross has been handed out only twice before, to former chancellors Konrad Adenauer and Helmut Kohl.

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

Ukraine crisis

Though hugely popular through most of her time in power, Merkel, 68, has seen her star fade since she retired in December 2021.

The long-time leader has in particular faced criticism of her policy towards Russian President Vladimir Putin and for leaving Germany dependent on Russian energy — a weakness laid bare by the war in Ukraine.

“At the end of her time in office, our country was not in good shape,” Bijan Djir-Sarai of the pro-business FDP party told the RND broadcaster.

Angela Merkel Order of Merit

Former German Chancellor Angela Merkel (R) is applauded by German President Frank-Walter Steinmeier (2nd L) and her husband Joachim Sauer (C) after receiving the Order of Merit. Photo: John MACDOUGALL / AFP

Steinmeier, who served as foreign minister twice under Merkel, has also faced criticism for his stance on Russia.

He said Moscow’s invasion of Ukraine had “not only changed Europe (but) changed the world and thus also our view of previous German and European politics”.

“It is important that we learn our lessons from this,” he said.

Some commentators have questioned the logic of Merkel receiving the award from Steinmeier.

“She is being honoured by a man whose political role is far less significant than Merkel’s,” said Der Spiegel magazine.

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

‘Great merit’

Merkel has also been criticised for her decisions in 2011 to exit nuclear power and in 2015 to welcome hundreds of thousands of refugees from Syria and Iraq.

The former chancellor had “great merits, particularly at an international level”, Carsten Linnemann, vice-president of Merkel’s own conservative CDU party, told the NTV news channel.

But she “also made mistakes, some of them glaring,” he said.

The nuclear exit, agreed after the Fukushima disaster, was “a mistake” because it was decided “without establishing how we were going to supply ourselves with energy in a reasonably self-sufficient way”, Linnemann said.

Errors had also been made with regard to the decision to leave Germany’s borders open in 2015, he said.

But Merkel, who has been writing her memoirs since she retired, has also continued to win praise, even from her Social Democrat (SPD) and Greens rivals.

READ ALSO: Merkel receives UNESCO peace prize for welcoming refugees

“I particularly appreciated her diplomatic skill and empathetic wisdom, thanks to which she always succeeded in forging viable coalitions and compromises on the national and international stage,” SPD co-leader Saskia Esken told RND.

Greens leader Omid Nouripour said Merkel had “shaped our country with her chancellorship like few others”.

“You do not have to agree with everything she did to recognise her great merits,” he said.

Steinmeier praised her hand in strengthening Germany’s economy.

“We can look back on 16 years of almost uninterrupted economic growth, during which the scourge of unemployment increasingly lost its horror for most Germans,” he 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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