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POLITICS

Merkel admits mistakes made over German spy boss promotion

In a highly unusual move, Angela Merkel on Monday apologized for the promotion of the head of Germany’s domestic intelligence agency.

Merkel admits mistakes made over German spy boss promotion
Angela Merkel at a Berlin press conference on Monday. Photo: DPA

The Chancellor said the decision to sack Hans-Georg Maaßen as head of the Protection of the Constitution (BvF), but then move him into a promoted post in the Interior Ministry with better money “could not convince people”.

During a press conference on Monday, Merkel (CDU) admitted that she had been too focused on the “proceedings in the Interior Ministry” and had not paid enough attention to “what people are rightly preoccupied with when they hear about a promotion”.

“I'm sorry that we allowed that to happen,” she said at a press conference. 

Last week SPD leader Andrea Nahles, who had come under massive pressure from her own party, had admitted that all three leaders of the coalition parties had made a mistake in the appointment.

Merkel had already made it clear on Friday after Nahles' comments that the promotion decision would have to be reassessed.

She said the solution the coalition found for Maaßen, who is now going to be a special advisor to the Interior Ministry, was “appropriate” and was more likely to be seen as reasonable by the public “because it is not a promotion”.

The coalition row was sparked after Maaßen gave a newspaper interview in which he questioned the authenticity of video footage from unrest that flared after a fatal knife attack in Chemnitz, allegedly by asylum seekers.

Merkel deplored the xenophobic scenes that followed, but Maaßen questioned whether any “hunting down” of foreigners had taken place. 

While his comments were cheered by the far right, opposition parties demanded he be fired for meddling in politics.

However CSU leader and Federal Interior Minister Horst Seehofer stood by Maaßen, saying he was a “competent, honest employee”.

Moving on 

In Merkel's public address – exactly one year after the Bundestag elections – the Chancellor also said that her government had been too concerned with itself after the long period of coalition building in the past months.

Merkel said the government needed to focus on “solving people’s problems”, and mentioned digitalization, Brexit, the care sector and diesel regulations as issues that needed to be tackled.

She said: “There are many very complicated and important issues that concern people, such as health, care, digitization, but also the UK's imminent departure from the EU.”

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ECONOMY

‘Turning point’: Is Germany’s ailing economy on the road to recovery?

The German government slightly increased its 2024 growth forecast Wednesday, saying there were signs Europe's beleaguered top economy was at a "turning point" after battling through a period of weakness.

'Turning point': Is Germany's ailing economy on the road to recovery?

Output is expected to expand 0.3 percent this year, the economy ministry said, up from a prediction of 0.2 percent in February.

The slightly rosier picture comes after improvements in key indicators — from factory output to business activity — boosted hopes a recovery may be getting under way.

The German economy shrank slightly last year, hit by soaring inflation, a manufacturing slowdown and weakness in trading partners, and has acted as a major drag on the 20-nation eurozone.

But releasing its latest projections, the economy ministry said in a statement there were growing indications of a “turning point”.

“Signs of an economic upturn have increased significantly, especially in recent weeks,” Economy Minister Robert Habeck said at a press conference.

The ministry also cut its forecast for inflation this year to 2.4 percent, from a previous prediction of 2.8 percent, and sees the figure falling below two percent next year.

READ ALSO: Can Germany revive its struggling economy?

“The fall in inflation will lead to consumer demand — people have more money in their wallets again, and will spend this money,” said Habeck.

“So purchasing power is increasing, real wages are rising and this will contribute to a domestic economic recovery.”

Energy prices — which surged after Russia’s 2022 invasion of Ukraine — had also fallen and supply chain woes had eased, he added.

Several months ago there had been expectations of a strong rebound in 2024, with forecasts of growth above one percent, but these were dialled back at the start of the year as the economy continued to languish.

‘Germany has fallen behind’

But improving signs have fuelled hopes the lumbering economy — while not about to break into a sprint — may at least be getting back on its feet.

On Wednesday a closely-watched survey from the Ifo institute showed business sentiment rising for a third consecutive month in April, and more strongly than expected.

A key purchasing managers’ index survey this week showed that business activity in Germany had picked up.

And last week the central bank, the Bundesbank, forecast the economy would expand slightly in the first quarter, dodging a recession, after earlier predicting a contraction.

German Economics Minister Robert Habeck

Economics Minister Robert Habeck (Greens) presents the latest economic forecasts at a press conference in Berlin on Wednesday, April 24th. Photo: picture alliance/dpa | Michael Kappeler

Despite the economy’s improving prospects, growth of 0.3 percent is still slower than other developed economies and below past rates, and officials fret it is unlikely to pick up fast in the years ahead.

Habeck has repeatedly stressed solutions are needed for deep-rooted problems facing Germany, from an ageing population to labour shortages and a transition towards greener industries that is moving too slowly.

“Germany has fallen behind other countries in terms of competitiveness,” he said. “We still have a lot to do — we have to roll up our sleeves.”

READ ALSO: Which German companies are planning to cut jobs?

Already facing turbulence from pandemic-related supply chain woes, the German economy’s problems deepened dramatically when Russia invaded Ukraine and slashed supplies of gas, hitting the country’s crucial manufacturers hard.

While the energy shock has faded, continued weakness in trading partners such as China, widespread strikes in recent months and higher eurozone interest rates have all prolonged the pain.

The European Central Bank has signalled it could start cutting borrowing costs in June, which would boost the eurozone.

But Habeck stressed that care was still needed as, despite the expectations of imminent easing, “tight monetary policy has not yet been lifted.”

In addition, disagreements in Chancellor Olaf Scholz’s three-party ruling coalition are hindering efforts to reignite growth, critics say.

This week the pro-business FDP party, a coalition partner, faced an angry backlash from Scholz’s SPD when it presented a 12-point plan for an “economic turnaround”, including deep cuts to state benefits.

Christian Lindner, the fiscally hawkish FDP finance minister, welcomed signs of “stabilisation” in the economic forecasts but stressed that projected medium-term growth was “too low to sustainably finance our state”.

“There are no arguments for postponing the economic turnaround,” he added.

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