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Annalena Baerbock to become Germany’s first woman foreign minister

Green party co-leader Annalena Baerbock is to become Germany's first woman foreign minister, her party announced Thursday, as the country's incoming coalition government takes shape.

Published: 26 November 2021 10:37 CET

Annalena Baerbock, co-leader of the Green Party and soon-to-be Foreign Minister, arrives at coalition negotiations on November 17th, 2021. Photo: picture alliance/dpa | Kay Nietfeld

The 40-year-old mother-of-two is expected to take on the role in early December once the new government – made up of the Social Democrats (SPD), the liberal FDP and the Greens – is formally installed.

Baerbock has signalled a more assertive stance on China and Russia, putting respect for human rights and the rule of law at the centre of German diplomacy.

Green party manager Michael Kellner said in a statement that co-leader Robert Habeck has been tapped to head a “super ministry” grouping together economy, energy and climate protection.

He will also become vice chancellor.

Although Baerbock, a former medal-winning trampolinist, failed in her bid to replace Angela Merkel as chancellor in September’s election, she nevertheless led her party to a record score of 15 percent.

The third-place result paved the way for the Greens to return to governing after 16 years in the opposition, in a novel three-way coalition with Olaf Scholz from the SPD as the presumed next chancellor.

The three parties – known as the “traffic light” alliance after their party colours – unveiled their coalition agreement on Wednesday, as well as the division of ministerial posts.

The agreement must still be formally endorsed by all three parties, expected to be a formality. Scholz is set to be sworn in by the Bundestag in the week starting December 6th.

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Five cabinet posts have been allotted to the Greens. Although the appointments of Baerbock and Habeck were widely expected, the party was plunged into a last-minute power struggle over who would fill the remaining three jobs.

In keeping with Scholz’s promise that the next cabinet would have gender parity, only one of those three could go to a man – pitting the party’s radical “Fundi” wing against Baerbock and Habeck’s more pragmatist and centrist “Realos” camp.

The tussle was resolved in evening talks on Thursday, with Kellner announcing that popular lawmaker Cem Ozdemir, who has Turkish roots, would lead the agriculture ministry. Ozdemir hails from the “Realo” camp.

Pandemic crisis

Several other top ministerial picks have also been revealed in recent days, with FDP leader Christian Lindner, a budgetary hawk, poised to become the new finance minister at the helm of the EU’s top economy.

The incoming government’s coalition pact includes promises to spend heavily on climate protection and infrastructure while sticking to Germany’s self-imposed debt limits.

Faced with a fierce fourth wave of coronavirus infections that saw Germany pass the mark of 100,000 Covid deaths on Thursday, they also pledged to create a crisis team to tackle the pandemic.

Outgoing Merkel however signalled she didn’t think current efforts went far enough, saying on Thursday that “every day counts” and quick action was needed to prevent hospitals from being overwhelmed.

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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.

“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.”

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.