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OPINION AND ANALYSIS

OPINION: Germany is in a muddle over Russia – and it only has itself to blame

As Germany is slammed for failing to take a firm stance against Russia in the Ukraine crisis, Brian Melican examines the two countries' complicated history, and how "ostalgia" and fishy deals have led to the Nord Stream II pipeline getting this far.

Sergei Lavrov (r), Russian Foreign Minister, and Annalena Baerbock, German Foreign Minister, attend a joint press conference after their talks in Moscow on January 18th.
Sergei Lavrov (r), Russian Foreign Minister, and Annalena Baerbock, German Foreign Minister, attend a joint press conference after their talks in Moscow on January 18th. Photo: picture alliance/dpa/Pool Reuters/AP | Maxim Shemetov

On the face of it, the facts of the matter are simple. Germany is a liberal democracy whose newly-elected government will soon be ditching outdated abortion legislation and strengthening the rights of non-standard families. It is part of a political union of (at least on paper) like-minded European democracies and of a military alliance also composed of free societies (subtract Turkey).

The single biggest threat to Germany’s political stability and military security, meanwhile, is Russia, an adversarial and authoritarian regime whose ruler Vladimir Putin, among other distasteful characteristics, sees women as little more than babymakers best off in wedlock to a “real man” – one who might, say, be a soldier in the army of 100,000 he has amassed on the border to the Ukraine. That there might be any doubt as to where Germany stands in the current showdown between Russia and the West is, in view of these facts, odd to say the least.

READ ALSO: Germany under fire over ‘mixed signals’ in Ukraine crisis

But there is a lot of doubt – both within Germany among those of us who think that we really should no longer be “seeking dialogue” with Russia at a time like this, and among our allies who, while not so bothered about us talking to Moscow, are very much concerned that we are only a flick of a switch away from making ourselves wholly dependent on Russian gas.

Yes, the new Nord Stream II pipeline, a direct supply excluding both the Ukraine and our immediate NATO and EU neighbours, has been built in spite of serious EU and NATO concerns and is – now of all times – almost complete. Given that Germany’s two key stated foreign-policy aims have long been 1) promoting European integration and 2) upholding the transatlantic alliance, that things have got this far is nothing short of the biggest failure of German diplomacy since the Federal Republic was founded in 1949.

READ ALSO: German regulator suspends Nord Stream II approval process

A sign for the Nord Stream II pipeline in Lubmin, Mecklenburg-Western Pomerania, Germany. Photo: picture alliance/dpa | Stefan Sauer

‘Ostalgia’

So how did we get here? 

Essentially, there are two key problems in play, both specifically German – and both exploited masterfully by a Russian regime which, whatever else you say about it, certainly runs a very tight foreign-policy ship.

Firstly, there is excessive sentimentality. For wholly understandable historic reasons, Germany views its relationship to Russia in emotional terms. We – quite rightly – feel a lot of guilt about what Nazi Germany did to the Soviet Union between 1941 and 1945. We also – once again, with good justification – feel pride at the way in which, under Willy Brandt and then later Helmut Kohl, we managed to make amends with a nation we had previously tried to exterminate and even persuaded them to let us reunify while deepening ties with our western neighbours.

In addition to this, many in the former East Germany have fond memories of school exchanges and holidays to Russia back in what, for those who weren’t anti-regime, can appear to be happier, simpler times. 

This mix of guilt, pride, and “ostalgia” (nostalgia for East Germany) has blinded many Germans to the truth about aggressive Russian foreign policy over the last decade – including many top politicians, who buy Moscow’s line that, in order to feel safe, it needs a buffer zone of subjected peoples stretching to (or past) the Polish border, conveniently forgetting that the Ukraine, too, used to be part of the USSR to whom we owe such a debt. You can identify this type of lazy thinking by Kremlin-friendly soundbites such as “The only way to solve our differences is at the negotiating table” and “What we need is more dialogue”.

Russian President Vladimir Putin and former German Chancellor Angela Merkel in Berlin in January 2020.

Russian President Vladimir Putin and former German Chancellor Angela Merkel in Berlin in January 2020. Photo: picture alliance/dpa | Kay Nietfeld

Whenever you call the effectiveness of more diplomatic hobnobbing into question, you’ll get Brandt’s Ostpolitik and Kohl’s wooing of Gorbachev thrown at you – and a blank refusal to see that there might be a small a difference between offering assurances to the Soviet Union a few short decades after the savagery unleashed on it by Germany in WWII and offering concessions to today’s Russia after its annexation of the Crimea.

Fishy business

The second major issue is economic and business interests, into which Russia is very adept at weaving the sentimentality outlined above. Through various dubious “forums”, German politicians and business leaders have been drip-fed a diet of caviar, high-proof vodka, and reminders that “even at the height of the Cold War, Moscow never defaulted on its gas deliveries to Europe”.

The aim couldn’t be clearer: Russia is already selling Germany most of its natural gas, and would like to sell it an even higher proportion. Seen from Moscow, becoming Berlin’s primary supplier is a win-win – for Russia, that is, which wins economically if Germany buys the gas and also wins geopolitically if, in the event of a conflict like the current one, it can threaten to turn off the tap. The excessive repetition of “reliability” is straight out of the Used-Car Salesman Handbook (1983 edition), but seems to have done the trick with half of the German elite nevertheless.

The other half may well be wily enough to see the ruse – and so are probably also wily enough to trouser a bribe when they see one. Take former German Chancellor Gerhard Schröder, that national disgrace who, like ex-UK Prime Minister Tony Blair, has made a post-premiership career out of cosying up to unappetising regimes but, unlike his third-way political blueprint, is anything but discrete about it, actually taking up paid board positions for Russian gas giants Rosneft and Gazprom.

Archive photo from May 2018 shows Russian President Vladimir Putin greeting Gerhard Schröder, former German Chancellor, during a ceremony marking Putin's inauguration.

Russian President Vladimir Putin greets ex German Chancellor Gerhard Schröder in May 2018 during a ceremony marking Putin’s inauguration. Photo: picture alliance/dpa | Alexei Druzhinin

Gazprom also happens to be – surprise! – the company behind the Nord Stream pipelines, the second of which Schröder approved in 2005, shortly before leaving office and taking his first rouble pay-check. The whole thing smells fishier than a school of Baltic herring, but Schröder has got away with it because his successor Angela Merkel (who grew up in the GDR and speaks fluent Russian) never had the heart to cancel the pipeline, or was perhaps simply taken in by the “reliable supplier” shtick, too. Either way, she made herself increasingly complicit in this act of geopolitical hara-kiri. 

READ ALSO: Germany set to finish controversial Russian pipeline despite US protest

‘Seeking dialogue’ with Russia

Don’t expect anything different from Olaf Scholz, either, a man so receptive to the needs of the business community that he is under investigation in Hamburg for having let a bank off of €50 million in tax following criminal activity. What is more, Scholz’ ageing SPD membership idolises Willy Brandt and Ostpolitik to an unhealthy extent, and so will expect him to “seek dialogue” with Moscow.

Manuela Schwesig, SPD premier of the northern German state of Mecklenburg-Western Pomerania, will also be pushing him to get the pipeline finished: she needs to secure well-paid industry jobs in her otherwise rural, tourism-dependent federal state more than ever now that its last shipyards are sliding into insolvency. 

And so Scholz’ only pronouncement on the pipeline since becoming Chancellor has been that it is “a wholly private-sector affair” – i.e. that, even as Russia threatens Germany’s allies in the Baltic, he won’t be intervening to prevent a pipeline bypassing them through their own back yard from going on stream. Apart from that, he sent Foreign Minister Annalena Baerbock to Moscow to lay a wreath at the memorial to the victims of Nazi atrocities and, of course, to “seek dialogue”. I’m sure our allies were delighted that she stopped in Kiev on her way to “seek dialogue” there, too, and will remember that important gesture when Nord Steam II goes operational.

Member comments

  1. Germany straddles the line between protector of Europe through NATO which at one point Germany could have been left out of that alliance and economic partnership with Russia.

    Germany was also reluctant to get involved in NATO inspired regime changes that undermined the global world order, going back to the start of the Ukraine crisis it was an anti Russian coup that ignited the region.

    Germany has to play it safe, look out for nascent democracies and free speech around the globe all the while recognising states like Russia, China and Iran have a role to play in the world order.

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OPINION AND ANALYSIS

OPINION: How bureaucracy is slowly killing Germany

Germany is struggling so much under the weight of bureaucracy that it would take even more red tape to make things better, writes Jörg Luyken. Is there any hope for the beleaguered Bundesrepublik?

OPINION: How bureaucracy is slowly killing Germany

In the summer of 2022, I attended a Q&A session that Olaf Scholz held with members of the public in the city of Magdeburg. Coming only a few months after the Russian invasion of Ukraine, most of the questions centred on sanctions, energy costs and Berlin’s response to the war.

But the response I found most revealing was on the dull topic of tax reform.

An audience member asked Scholz why the VAT rate on dog food is seven percent but on baby food it is 19 percent. Parts of the system “don’t seem very coherent to me,” the man said with obvious understatement.

READ ALSO: Bureaucracy and high taxes: Why Germany is becoming less attractive for business

“I don’t think you’ll find anyone who understands the list of VAT exceptions,” Scholz replied with a grin, adding that “at any rate I don’t understand it.”

“But I can tell you that all attempts to change it have ended in a massive disaster,” he continued. “If we were to lay an empty table today, we would definitely do differently. But the system is there now and I think we will have to live with it for a while yet.”

It was a fascinating answer. Essentially, Scholz admitted that there are some regulations that are so complex that no one really understands them anymore. But trying to simplify them just isn’t worth the effort.

It reminded me of a story I once heard about Cairo’s famously dysfunctional traffic system.

Legend has it that Egypt invited a group of Japanese planners to come up with a way to fix it. But the Japanese were so befuddled by what they found that they advised the Egyptians to leave things exactly as they were. The system was so confusing that any attempt to tamper with it might only make things worse.

A similar thing could be said of Germany’s regulatory system. It can be contradictory and infuriatingly slow, but open the can of worms of trying to simplify it and you will probably live to regret it.

private pension plans spain

VAT is just one more confusing piece of German bureaucracy. Photo: Mathieu Stern/Unsplash

Summer snow and other oddities of German red tape

VAT serves as a notorious example. But, wherever you look in German life, you will find egregious cases of sprawling and overlapping regulations.

A few amusing examples:

In August 2022, the town of Esslingen in Baden-Württemberg wanted to organise a summer fête to help local restaurants get back on their feet after Covid. The idea was to build temporary food huts that restaurants could rent cheaply. But planning authorities insisted the huts be built to take the weight of heavy snowfall – during a month with average temperatures of 19C. The fête went ahead, but the eventual costs were “exorbitant,” city officials said.

Last winter, the town of Tübingen acted on an appeal from the federal government to cut gas usage. They decided to switch off street lights between 1 am and 5 am, something that would cut energy costs by 10 percent. Shortly afterwards though, they had to backtrack. The measure contravened a regulation on providing light for pedestrians. In the event of an accident they could have been sued.

A landlord in Hanover recently recounted her efforts to turn an empty attic into student housing. Her planning application was first rejected by fire authorities who said that the branches of a tree were blocking an escape route. Their proposal to cut the tree back was then turned down by the city authority for green spaces, which argued that trees form “a vital part of the city scenery” and “must be protected at all costs.”

Flood of new rules

It is not as if politicians aren’t aware that over-regulation is having a stifling effect on society’s ability to function and adapt.

In its coalition agreement, Scholz’ ‘traffic light’ government committed itself to cutting bureaucracy 63 times. There is an entire section in the agreement on how they planned to cut down official paperwork.

READ ALSO: Germany unveils new plan to be more immigrant and digital friendly

But changing such a deep-seated German mentality is a different matter.

In a withering report published in November, the government’s own bureaucracy watchdog, the Normenkontrollrat, concluded that under the current government the costs of bureaucracy “have reached a level that we’ve never seen before.”

Far from cutting back paperwork, the traffic light coalition has loaded companies, administrators and citizens with a whole raft of new rules, the watchdog said. “Ever more regulations have to be observed and implemented in less and less time,” it concluded.

The frustration is being felt most acutely by local administrators, who say that they just don’t have enough staff to cope anymore.

An open letter sent to Scholz by town councils in Baden-Württemberg pleaded that “things can’t go on like this. Ever more laws and regulations, all too often containing mistakes …are simply resulting in an unmanageable flood of tasks.”

Meanwhile, Germany’s revered Mittelstand, or small and medium sized family businesses, has warned that over-regulation is the single biggest threat to their future viability. A survey among middle-sized companies last year showed that they were far more concerned about regulation than energy prices. Other surveys have shown that a majority of companies don’t understand the regulations they are expected to follow, while two thirds say they make no sense.

“Enormous bureaucratic burdens are combining with labour shortages, lengthy administrative procedures, permanently high energy prices and high taxes in a blow to the future of our business location,” warns Marie-Christine Ostermann, head of the association of family business.

READ ALSO: Why German family businesses are desperately seeking buyers

Stuck in the analogue era

For some though, the problem isn’t the regulation itself, it is the fact that there are not enough bureaucrats to deal with it all. After all, they argue, the rules are there to ensure that everyone’s concerns are accounted for.

“An unbureaucratic administration would be a nightmare,” protested economist Georg Cremer in a recent article for Die Zeit. “Sure, there can be too much of a good thing… (but) a prosperous social life is absolutely dependent on the government and administration being bound by law.”

Germany’s welfare system, Cremer points out, requires an army of bureaucrats who assess each claimant’s case based on things like the age of their children and their specific rental needs. “Undoubtedly, the welfare system is over-regulated”, he admits, but we also shouldn’t forget that any attempt to simplify it would make it less fair.

The Deutsche Institut für Wirtschaft, a left-wing economic think tank, has therefore argued that the answer to Germany’s woes is not to strip back regulation, but to employ more staff and push on with the digitisation of key services.

That sounds good in principle. But, when it comes to modernising Germany’s ossified public institutions, it is easier said than done.

A law passed in 2017 obliged local administrations to offer close to 600 of their services online by the end of 2022. A year past that deadline, just 81 of the services have been made available across the country.

The reason for the delays? Local governments are using software that is incompatible with the services developed by the federal government. Meanwhile bureaucrats often display a “grievous” lack of knowledge of how to use a computer, a recent analysis by consumer website Verivox found.

Bürgeramt

A man walks to the Bürgeramt, one of the many centres of German bureaucracy. Photo: picture alliance/dpa | Martin Schutt

A German Javier Milei?

In September of last year, Scholz appeared to have finally recognised that things have gone too far.

Doing a good impression of an anarcho-capitalist then running to be president of Argentina, the chancellor gave a rousing speech to the Bundestag in which he called on the country to unite against the scourge of excessive regulation.

“Only together can we shake off the blight of bureaucracy, risk aversion and despondency that has settled over our country for years and decades,” he said. “It is paralyzing our economy and causing frustration among our people who simply want Germany to function properly.”

Two months later, Scholz announced he had reached a “historic” agreement with the federal states to speed up planning processes and to make life “palpably” easier for German citizens.

The agreement, since praised by the Normenkontrollrat as “having a lot of potential,” will mainly muzzle environmental agencies, thus allowing LNG terminals, wind turbines and motorways to be built through sensitive natural environments.

The jury is still out on whether it will simplify your everyday life.

At the start of this year more new laws came into force, including the government’s now notorious gas heating ban.

One that passed with less attention was a decision to abolish child passports. Under the old system you could take your child to your local Bürgeramt and they would give you a Kinderpass on the spot for €13.

READ ALSO: How Germany can make life easier for foreign parents

Now, all children are required to have proper documents that are valid for six years. The hitch? The passport (which costs €40 and takes six weeks to arrive) is only valid as long as your child’s face remains recognisable.

“The new system makes absolutely no sense for children under six,” the lady at the Bürgeramt told me when I applied for my newborn baby’s first passport this week. “A baby’s face changes so much that you’ll have to get a new one after a year anyway.”

This article originally appeared in The German Review, a twice weekly newsletter full of analysis and opinion on German politics and society. You can sign up to read it here.

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