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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. The EU is said to have warned Germany months ago about backing China's investment in the port. (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

Germany’s Scholz rejects calls for later retirement in Labour Day message

German Chancellor Olaf Scholz (SPD) has rejected calls for later retirement in a video message for Labour Day published on Wednesday.

Germany's Scholz rejects calls for later retirement in Labour Day message

“For me, it is a question of decency not to deny those who have worked for a long time the retirement they deserve,” said Scholz.

Employees in Germany worked more hours in 2023 than ever before: “That’s why it annoys me when some people talk disparagingly about ‘Germany’s theme park’ – or when people call for raising the retirement age,” he said.

Scholz also warned of creating uncertainty due to new debates about the retirement age. “Younger people who are just starting out in their working lives also have the right to know how long they have to work,” he said.

Scholz did not explicitly say who the criticism was targeted at, but at its party conference last weekend, the coalition partner FDP called for the abolition of pensions at 63 for those with long-term insurance, angering its government partners SPD and the Greens.

Scholz saw the introduction of the minimum wage nine years ago – and its increase to twelve euros per hour by his government – as a “great success”. “The proportion of poorly paid jobs in our country has shrunk as a result,” he said.

READ ALSO: EXPLAINED: Is it worthwhile to set up a private pension plan in Germany?

However, he said there were still too many people “who work hard for too little money,” highlighting the additional support available through housing benefit, child allowance and the reduction of social security contributions for low earners.

“Good collective wage agreements also ensure that many employees finally have more money in their pockets again,” he added. 

And he said that the country wouldn’t “run out of work” in the coming years.

“On the contrary! We need more workers,” he said, explaining that that’s why his government is ensuring “that those who fled to us from Russia’s war in Ukraine get work more quickly.”

Work means “more than making money,” said Scholz. “Work also means: belonging, having colleagues, experiencing recognition and appreciation.”

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