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ANGELA MERKEL

Merkel given Germany’s top honour despite criticism

Former chancellor Angela Merkel received Germany's highest honour on Monday despite facing continued criticism of her legacy since leaving office, especially over her policy towards Moscow.

Merkel given Germany's top honour despite criticism
German President Frank-Walter Steinmeier (L) awards the Order of Merit to former German Chancellor Angela Merkel at the Bellevue presidential palace in Berlin on April 17th, 2023. Photo: John MACDOUGALL / AFP

Merkel, who led Europe’s biggest economy from 2005 to 2021, was presented with the special class Grand Cross by President Frank-Walter Steinmeier on Monday evening.

The longtime leader thanked her family and several former aides for supporting her through her years in power, recalling “many very, very good experiences”.

“People often say what a snake pit politics is. I may say that I would not have survived if it were not for the other side of politics, and that is why I have always been able to enjoy it,” she said.

In a speech before handing over the award, Steinmeier praised Merkel’s “extraordinarily long time in office and… extraordinary political life”.

“For 16 years you served Germany with ambition, with wisdom, with passion,” he said.

Guests at the ceremony included Chancellor Olaf Scholz, European Commission chief Ursula von der Leyen and Merkel’s husband, Joachim Sauer.

The special class Grand Cross has been handed out only twice before, to former chancellors Konrad Adenauer and Helmut Kohl.

READ ALSO: Merkel says no regrets over Germany’s Russia gas deals

Ukraine crisis

Though hugely popular through most of her time in power, Merkel, 68, has seen her star fade since she retired in December 2021.

The long-time leader has in particular faced criticism of her policy towards Russian President Vladimir Putin and for leaving Germany dependent on Russian energy — a weakness laid bare by the war in Ukraine.

“At the end of her time in office, our country was not in good shape,” Bijan Djir-Sarai of the pro-business FDP party told the RND broadcaster.

Angela Merkel Order of Merit

Former German Chancellor Angela Merkel (R) is applauded by German President Frank-Walter Steinmeier (2nd L) and her husband Joachim Sauer (C) after receiving the Order of Merit. Photo: John MACDOUGALL / AFP

Steinmeier, who served as foreign minister twice under Merkel, has also faced criticism for his stance on Russia.

He said Moscow’s invasion of Ukraine had “not only changed Europe (but) changed the world and thus also our view of previous German and European politics”.

“It is important that we learn our lessons from this,” he said.

Some commentators have questioned the logic of Merkel receiving the award from Steinmeier.

“She is being honoured by a man whose political role is far less significant than Merkel’s,” said Der Spiegel magazine.

READ ALSO: What do Germans think of Merkel a year after her departure?

‘Great merit’

Merkel has also been criticised for her decisions in 2011 to exit nuclear power and in 2015 to welcome hundreds of thousands of refugees from Syria and Iraq.

The former chancellor had “great merits, particularly at an international level”, Carsten Linnemann, vice-president of Merkel’s own conservative CDU party, told the NTV news channel.

But she “also made mistakes, some of them glaring,” he said.

The nuclear exit, agreed after the Fukushima disaster, was “a mistake” because it was decided “without establishing how we were going to supply ourselves with energy in a reasonably self-sufficient way”, Linnemann said.

Errors had also been made with regard to the decision to leave Germany’s borders open in 2015, he said.

But Merkel, who has been writing her memoirs since she retired, has also continued to win praise, even from her Social Democrat (SPD) and Greens rivals.

READ ALSO: Merkel receives UNESCO peace prize for welcoming refugees

“I particularly appreciated her diplomatic skill and empathetic wisdom, thanks to which she always succeeded in forging viable coalitions and compromises on the national and international stage,” SPD co-leader Saskia Esken told RND.

Greens leader Omid Nouripour said Merkel had “shaped our country with her chancellorship like few others”.

“You do not have to agree with everything she did to recognise her great merits,” he said.

Steinmeier praised her hand in strengthening Germany’s economy.

“We can look back on 16 years of almost uninterrupted economic growth, during which the scourge of unemployment increasingly lost its horror for most Germans,” he said.

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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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