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POLITICS

Chancellor Scholz urges Germans to ‘guarantee safety’ of Jewish population

German Chancellor Olaf Scholz on Wednesday evening called on his compatriots to show solidarity with the country's Jewish population and guarantee their safety, condemning incidents at pro-Palestinian rallies.

Olaf Scholz
Chancellor Olaf Scholz (SPD) takes a minute of silence in the Bundestag on Tuesday for victims of the Hamas terrorist attacks on Saturday morning. Photo: picture alliance/dpa | Britta Pedersen

“I ask for the support of all citizens so that together we can guarantee the safety of our Jewish fellow citizens, and to do this we must show solidarity with them,” Scholz said on ARD television.

“We can’t accept it,” he said of anti-Semitic messages heard at pro-Palestinian demonstrations held in Germany since Hamas’s deadly attack on Israel at the weekend, which led to Israel’s massive retaliation in the Gaza Strip.

READ ALSO: Germany prepares to evacuate thousands of citizens from Israel

Despite a ban on such demonstrations, around a hundred people gathered in Berlin’s Neukölln district on Wednesday evening in support of the Palestinians, in a tense atmosphere surrounded by a heavy police presence.

The rally had been banned by the police as “a danger to public safety and order”.

The Bild tabloid also reported incidents on Wednesday evening on the margins of a demonstration in support of Israel in Chemnitz, eastern Germany.

Several dozen people with Palestinian flags attacked some demonstrators with Israeli flags, witnesses told the newspaper.

On Saturday, the day of the Hamas offensive against Israel, Berlin police reported people “celebrating the attacks on Israel by distributing pastries” in the Neukölln district.

The same evening, a pro-Palestinian rally was dispersed because of anti-Israeli slogans, according to the police.

Both actions were relayed on X, formerly Twitter, by the German account of the “Palestinian Prisoner Support Network” Samidoun, which hailed the Hamas attack as an act of “resistance”.

Since the Hamas attack in Israel, Germany has stepped up protection around the country’s Jewish institutions.

On Thursday morning, Scholz said that Germany pledged Israel its full support in the conflict with Hamas militants, saying Berlin’s “only place” right now was at Israel’s aide.

“For Germany at the moment, the only place is at Israel’s side,” Scholz said in a speech to parliament.

“Our own history, our responsibility stemming from the Holocaust, make it an everlasting duty to stand up for the existence and security of the state of Israel.”

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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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