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OLAF SCHOLZ

EU warned Germany about Hamburg port Chinese investment

The European Commission warned Germany months ago against Chinese investment in Hamburg's port, a source close to the matter told AFP on Saturday, as Chancellor Olaf Scholz faced criticism for reportedly backing the transaction.

container ships discharged at hamburg port
Container ships are discharged at Hamburg Port terminals. Photo by Axel Heimken / AFP

The source confirmed information in a report by the Handelsblatt daily that the EU executive had in spring given Berlin a thumbs-down to Chinese shipping giant Cosco taking a 35-percent stake in the port under a deal agreed last year but not yet authorised.

The commission was worried that sensitive information about activity in the port — the third busiest in Europe — could be relayed to China’s government.

Its recommendation was non-binding, with Germany having the final say on the deal.

German broadcasters NDR and WDR on Thursday reported that Scholz’s office is planning to approve the deal despite opposition from six different ministries in Germany’s coalition government.

According to the report by NDR and WDR, the deal would effectively be approved automatically if the government does not intervene by the end of this month.

Scholz, who was mayor of Hamburg between 2011 and 2018 before becoming vice chancellor and then chancellor, announced after attending an EU summit on Friday that he would visit China in November.

He said that “nothing is decided” about the Chinese investment, but noted there were Chinese stakes in other European ports.

The EU’s stance against China, however, has hardened since those other stakes were made.

At the EU summit, leaders agreed they did not seek confrontation with China, wanting its cooperation on climate change and other issues.

But they also expressed discomfort at China’s increasing assertiveness in many areas, including in trade, and its bond with Russia, which is waging war in Ukraine.

European Council President Charles Michel said after Friday’s summit that there must be “more reciprocity and rebalancing in particular in the economic relations between China and the EU”.

Chinese President Xi Jinping on Saturday gathered support from his Communist Party that will enable him to sail through to a third term. Xi previously abolished the presidential two-term limit, paving the way for him to rule indefinitely.

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POLITICS

Scholz to run again as Germany confirms 2025 election

Olaf Scholz said on Wednesday he will run to be chancellor again in Germany's 2025 election despite his party's poor performance in recent surveys, as a September date was confirmed for the vote.

Scholz to run again as Germany confirms 2025 election

“I will run as chancellor, to become chancellor again,” Scholz told journalists at his annual summer press conference in Berlin.

The cabinet had earlier signed off September 28th, 2025 as the date for the election.

Scholz became chancellor after his centre-left Social Democrats (SPD) won Germany’s last general election in 2021.

The SPD formed a coalition with the Greens and the liberal FDP, but the parties have since clashed over a wide range of issues including climate measures and budget spending.

The war in Ukraine, the ensuing energy crisis and high inflation have also contributed to a general sense of discontent with the government.

READ ALSO: ‘After UK and French elections, Germany’s headaches this summer lie at home’

All three ruling parties have seen their ratings plummet, with the conservatives now the biggest party and the far-right AfD polling in second place.

The SPD scored its worst ever result in June’s EU elections with just 14 percent.

Amid the turmoil, Scholz has also seen his popularity slide within his own party.

Only one-third of SPD members believe he is the right candidate for chancellor in 2025, according to a recent survey – with Defence Minister Boris Pistorius the preferred option for many.

But Scholz on Wednesday said his party was “very united behind what I am doing”.

“There has probably never been such a united SPD as the one we put together before the (2021) federal election and it managed to win the … election from a difficult starting position,” Scholz said.

The SPD had also been polling badly before the 2021 election but managed to stage a last-minute comeback, in part thanks to a weakened conservative camp that struggled to convince voters without former chancellor Angela Merkel.

READ ALSO: What the shock defection of a Greens MP to the CDU tells us about German politics

“We will remain united and pursue our course,” Scholz said.

Asked about potential young SPD candidates to replace him, Scholz even suggested he could see himself staying on as chancellor for more than one more term.

The party will be ready for that “at the end of the next legislative period or the one after that”, he said.

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