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POLITICS

New head of Merkel’s CDU under fire for pandemic comments

Armin Laschet, the new head of Germany's conservative CDU party, is known as an ally of Angela Merkel -- but has come under fire for distancing himself from the chancellor's pandemic policy.

New head of Merkel's CDU under fire for pandemic comments
Laschet speaking on Wednesday in Düsseldorf. Photo: DPA

Laschet won the CDU leadership race in January on a promise to continue Merkel's moderate course when she retires this year, but is still struggling in public opinion polls seven months ahead of a general election.

With two crucial state elections looming in mid-March, Laschet this week laid into the Merkel government's coronavirus strategy, urging it not to “treat citizens like helpless children”.

READ ALSO: Succeeding Merkel: Chancellor's Ally Armit Laschet elected CDU party chief

But the comments have left the political centrist from Aachen, who turns 60 on Thursday, accused of flip-flopping and pandering to populists.

Merkel and Germany's regional leaders last week extended the country's partial lockdown until March 7th.

But they agreed that some measures could be relaxed once the incidence rate falls to 35 new cases per 100,000 residents over a seven-day period.

The government had earlier set an incidence target of 50 but revised it downward due to concerns over more contagious virus variants.

“You can't keep inventing new limits as a way of preventing life from happening again,” railed Laschet on Monday during a CDU meeting in Baden-Württemberg — one of the two states holding elections in March.

'Clumsy populism'

“We can't measure our whole lives just by incidence rates,” Laschet said.

“There still seems to be this popular attitude of 'ban everything, be strict, treat citizens like helpless children'.”

Germany's Bild daily, long a vocal critic of the government's coronavirus policy, lauded Laschet for merely “saying out loud what many people are thinking”.

But others pointed out that, as the head of Germany's most populous state of North Rhine-Westphalia, Laschet had himself attended last week's meeting and signed off on the new threshold.

READ ALSO: Who is the new head of Germany's conservative CDU party?

The incidence rate for the whole of Germany was hovering at around 57 on Wednesday and had fallen below 50 in three states, including the capital Berlin.

Parts of the CDU have been crying out for a return to normality, urging the government to take into account not just the incidence rate but other factors such as the number of Covid-19 patients in hospital.

But Laschet's comments have given ammunition to his opponents, especially the centre-left Social Democrats (SPD), currently in coalition with the CDU but becoming increasingly combative as the election draws near.

Lars Klingbeil, general secretary of the SPD, accused Laschet of
flip-flopping and “clumsy populism”.

North Rhine-Westphalia's State Premier Armin Laschet delivers a speech after being elected as CDU leader at a digital congress in Berlin on January 16th. Photo: AFP

'U-turn'

There was criticism too from the Green party, seen as a potential new coalition partner for the CDU in Germany's next government.

The CDU has seen its popularity slip in recent opinion polls, hurt by increasing public frustration with the government's recent handling of the pandemic.

But this is largely down to “the chaos of the vaccination campaign, rather than disaffection with the lockdown”, according to political scientist Oskar Niedermayer at Berlin's Free University.

Laschet's comments are a “mistake”, he told AFP: “This U-turn reinforces his image as a politician without a clear line of conduct in crisis management.”

Laschet has come under fire before over his handling of the pandemic in North Rhine-Westphalia.

During the first wave last year, he pushed aggressively for the loosening of restrictions — only to backtrack after a huge outbreak at a slaughterhouse.

The question of who will lead Germany's conservatives to the polls will be decided in the spring, with Laschet up against Markus Söder, the head of the CDU's sister party in Bavaria.

Söder has repeatedly taken a hard line when it comes to virus measures and did so again on Wednesday, citing the incidence rate of 35 as a firm marker.

He also seized the moment to tweet a photo featuring books on the architecture of the chancellery and the art of governing.

By Mathieu Foulkes

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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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