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Gorbachev died at a time of ‘failed’ Russian democracy: German Chancellor Scholz

Chancellor Olaf Scholz on Wednesday hailed Mikhail Gorbachev's role in reuniting Germany but lamented that the last Soviet leader's attempt to establish enduring democracy in Russia had "failed".

Former Soviet leader Mikhail Gorbachev at Pariser Platz with the Brandenburg Gate behind him in Berlin, Germany, November 8th, 2014.
Former Soviet leader Mikhail Gorbachev at Pariser Platz with the Brandenburg Gate behind him in Berlin, Germany, November 8th, 2014. Photo: Jens Kalaene/dpa

“The democracy movements in central and eastern Europe benefited from the fact he was in power then in Russia,” Scholz said of the years leading to the fall of the Berlin Wall in 1989.

However Gorbachev “died at a time in which democracy has failed in Russia”.

Calling him a “courageous reformer” and “a statesman who dared a lot”, Scholz said his “perestroika”, Gorbachev’s drive to modernise the Soviet economy and society, had paved the way for broader “democracy and freedom in Europe”.

That new wind blowing at the end of the Cold War allowed “Germany to be unified and the Iron Curtain to disappear”, Scholz said.

He regretted the path Russia had taken in the intervening years and that the Russian president, Vladimir Putin, had “started a terrible war against a neighbour, Ukraine.

“That is all the more reason why we think of Mikhail Gorbachev and know what significance he had for the development of Europe and our own country in the last years.”     

Asked later whether he would consider attending Gorbachev’s funeral in Russia, which is subject to sweeping Western sanctions over the war in Ukraine, Scholz said it was “too soon” to discuss such a trip.

“But I will say that I hope he will be honoured in the way he deserves,” Scholz said.

Former German chancellor Angela Merkel paid tribute Gorbachev as a “unique world politician” who demonstrated how “one single statesman can change the world for the better”.

“The images of his meeting with (West German) chancellor Helmut Kohl in the Caucasus in 1990 are unforgettable, with which Germany reunification in peace and freedom also came within reach,” said Merkel, who grew up in East Germany.

“Mikhail Gorbachev also fundamentally changed my life. I will never forget that.”

READ ALSO: 10 things you never knew about German reunification

Several other German politicians also paid tribute to the Russian Nobel Peace Prize laureate shortly after his death.

Germany’s Foreign Minister Annalena Baerbock said in a tweet: “Gorbachev was guided by peace and understanding between people at fateful moments in our history. The end of the Cold War and German unity are his legacy. We mourn the loss of a statesman to whom we are eternally grateful.”

Without Gorbachev, “the peaceful revolutions in the countries of the Eastern bloc, in our country, would not have been conceivable in this way,” said Bundestag Vice President and Green Party politician Katrin Göring-Eckardt on Twitter.

“His words have encouraged us, have made me, strong.”

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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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