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POLITICS

Why German media is saying the Chancellor is on a ‘sinking ship’

The news that a key ally of Angela Merkel lost his post as the CDU’s parliamentary chief dropped like a political bomb in Berlin. It has sent the German media into overdrive, as they speculate what it means for the Chancellor and her party.

Why German media is saying the Chancellor is on a 'sinking ship'
Ralph Brinkhaus (CDU), newly elected leader of the CDU/CSU parliamentary group next to Alexander Dobrindt, chairman of the CSU regional group. Photo: DPA

It was a shock that no one saw coming. On Tuesday Volker Kauder, who has headed the parliamentary group of Angela Merkel’s CDU and Bavarian allies CSU for 13 years, lost in a re-election battle to challenger Ralph Brinkhaus, a relative unknown.

Brinkhaus, Kauder's deputy, received 125 votes to 112 in a secret ballot held on Tuesday afternoon.

The surprising result came a day after Merkel was forced to admit mistakes in her handling of a row surrounding Germany's outgoing domestic spy chief.

Political observers and opponents called the vote a slap in the face for the chancellor, who had campaigned hard for Kauder's re-election.

“This is a revolt against Merkel,” wrote the centre-left SPD's parliamentary group leader Thomas Oppermann on Twitter minutes after the result was published.

Deputy leader of the SPD, Ralf Stegner noted that the result “shows how deep the erosion of power within the (CDU-CSU) is.”

Meanwhile right-wing populist party AfD gleefully welcomed Kauder's toppling. “It's over for Merkel: Kauder voted out! Volker Kauder's loss in the election as parliamentary group leader now clearly shows Merkel's loss in power. The twilight of Merkel has finally set in,” wrote AfD leader Alice Weidel on Twitter.

'Power is dwindling'

Politicians with gaping mouths aside, German media outlets were also caught by surprise and have been analyzing why it happened and what it means. 

An opinion piece published by Zeit on Tuesday said: “The Chancellor's power is dwindling at an alarming rate. If Merkel's chancellorship were a ship, the water would now be up to the engine room.”

Zeit said the vote was “not a long-planned coup against the Chancellor”, but instead it’s possible that members of parliament “simply wanted to send a signal with their vote”.

The newspaper said Merkel will now have to “listen more to her faction and party”.

“She must take seriously the rebellion that has become unmistakable in recent months,” it said.

Suddeutsche Zeitung called the defeat a “humiliation” for Merkel.

“The victory of Ralph Brinkhaus over Volker Kauder is not just a surprise,” the newspaper said. “It is a cut in Merkel's chancellorship that reaches even deeper than her public regret about mistakes in the case of Maaßen the day before.”

Earlier on Tuesday, Spiegel Online had said that a win by Brinkhaus would mean that “Merkel should really clean out her office in the chancellery immediately – his election would be nothing short of a vote of distrust against the leader of the government.”

On Wednesday the publication said:  “On paper it was a revolt against the leadership.”

The news outlet put the move down to the majority of the CDU/CSU faction members being “fed up with the fact that Merkel and Seehofer are constantly at loggerheads with each other, and with the ongoing dispute with the SPD, especially since the Union's poll results are constantly getting worse”.

Angela Merkel leaving the Bundestag on Tuesday. Photo: DPA

Spiegel said there was no flavour for new Federal elections “at least so far”. So members looked for another way to revolt – by sending the group leader packing. 

Why is it happening now?

After nearly 13 years in power, Merkel has seen support for her centre-right party chipped away by the far right, which has mobilized backing with its anti-immigration stance.

Merkel's decision not to close the border to more than one million asylum seekers at the height of the refugee influx in 2015-2016 continues to affect the political landscape.

Voter anxiety over the policy swelled support for the far-right Alternative for Germany (AfD) party, which captured nearly 13 percent of the vote in the September 24th, 2017 general election.

Spats with Interior Minister Horst Seehofer over immigration during the summer and riots in the eastern city of Chemnitz at the end of August sparked by the death of a German man, allegedly by asylum seekers, has also affected the party's popularity. A recent poll showed support for the Union at 28% – the lowest result since the 'Deutschlandtrend' survey started in 1997.

In recent weeks the row over the former German spy chief Hans-Georg Maaßen, who contradicted Merkel by questioning the authenticity of video footage showing the “hunting down” of people in Chemnitz has further damaged the reputation of the coalition and her party.

Who is Ralph Brinkhaus?

Brinkhaus, a tax consultant by profession, joined the CDU in 1998, and is said to be an expert when it comes to issues concerning finance and budget financial, though not in broader political questions. 

He has described by German media outlets as “rather a quiet guy” but Brinkhaus has clashed with Merkel in the past, such as in 2017 when he challenged her proposal to limit tax write-offs for business managers.

Although colleagues welcomed his candidacy as a “renewal of group leadership”, political observers question whether his focus on finance limits his perspective.

What is Merkel saying herself?

Not much at the moment, but she remains characteristically diplomatic.

In a brief statement, Merkel thanked Kauder and congratulated Brinkhaus, adding that “this is an hour of democracy, in which there are also defeats and there's nothing to gloss over.”

Brinkhaus himself said opposing Merkel was not his intention of joining the race.

But he felt the parliamentary group needed a change at the top after 13 years.

It's not about shifting the group in a specific direction, but about an internal positioning of the group and how we can get new momentum,” Brinkhaus said ahead of the vote results.


 

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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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