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POLITICS

Germans back leftists amid growing working-class worries

A new socialist political party in Germany is successfully turning its populist message into votes. Kyle James examines the rise of The Left and its impact on German politics.

Germans back leftists amid growing working-class worries
Che keeps watch over The Left's Oskar Lafontaine. Photo: DPA

In a community hall in the small western German state of Saarland, a group of around 300 people, mostly coal miners and their families, recently gave their rapt attention to a politician on stage, who was telling them exactly what they wanted to hear.

He said that mining had a future in Germany even though coal imports are now much cheaper than heavily subsidized domestic supplies. He lambasted the government for not doing more to help out this industrial region near the French border that has struggled with structural change. And he castigated the rich, calling for the introduction of a wealth tax and raising corporate tax rates.

“It’s immoral,” he yelled from the stage, referring to government policies that benefit corporations while welfare benefits are cut. “Higher income people have to contribute their fair share.”

Then Oskar Lafontaine stepped back slightly from the podium and let the loud and sustained applause wash over him.

Lafontaine is a co-leader of Die Linke, or The Left party, a new socialist force enjoying unprecedented levels of support for a young political movement in Germany. The party was created last year out of a merger between the Party of Democratic Socialism (PDS), the reformed communist party from East Germany, and a small left-wing party in western Germany made up of discontented former members of the centre-left Social Democratic Party (SPD). Mostly western trade unionists, they believe the SPD betrayed its principles by drastically reforming the country’s welfare system under former chancellor Gerhard Schröder.

Lafontaine, once SPD chairman and Schröder’s first finance minister, has electrified crowds of supporters with his speeches and books railing against current German government policies that allegedly allow the rich to accumulate wealth while the working class struggles to make ends meet.

And that message is resonating with Germans who are casting their ballots for the far left in bigger and bigger numbers. Since the party’s creation last year, The Left has attracted around 10,000 new members, while the SPD and the conservative Christian Democrats (CDU), the country’s two biggest parties, are hemorrhaging supporters.

Marlis Krämer, 70, is one of those who left the SPD for The Left. She was an SPD member for 25 years and served as a city councilor for seven of those. But earlier this year, she gave her local SPD office a letter with 12 points explaining why she could no longer in good conscience remain a member.

She could not stomach the welfare cuts, the German military mission in Afghanistan, and the trade unions’ acceptance of low or no wage hikes for workers. She said she wanted to support a party with an alternate vision for the country.

“Globalization as it’s happening now means that a small few are calling the shots all over the world, and they’re forcing their way on everyone else. Capital is the driving force,” says Marlis Krämer. “Oskar Lafontaine is the one who has the courage to stand up to capital.”

Tapping the zeitgeist

The Left party’s timing for its national debut was fortuitous, coming as it did at a time when Germany’s traditional social market economic model appears to be under threat. The shockwaves of globalization have weakened some of the country’s oldest societal and economic pillars, and Germans are being forced to rethink several of their cherished, but expensive institutions – such as comprehensive cradle-to-grave welfare benefits, sector-wide wage agreements, and secure jobs for life.

That is not sitting well with many Germans and they are the ones looking leftwards on the political spectrum for answers.

“These new voters for the Left party are what researchers call ‘modernization losers,'” said Oskar Niedermayer, a political scientist at Berlin’s Free University. “Those who are losing out in globalization and are worried about their jobs and very concerned about social justice.”

It appears to be a growing group. A new study by McKinsey shows that unless German economic growth starts exceeding three percent annually soon (it is now forecast to stay under two percent), 10 million fewer people could belong to the group of middle-income earners in 2020 than did in the early 1990s. That information came on the heels of another survey showing that number of people in Germany earning less than 50 percent of the average national income increased from 7.3 to 11.4 percent from 1996 to 2006.

But many politicians say the sometimes painful changes made to the welfare and labour systems are needed to help Germany stay competitive in the global market. Johannes Kahrs, a Social Democratic parliamentarian and member of the centrist wing of his party, has watched The Left drain support from his party’s base. He does not like it, but he understands why it is happening.

“They see that many things are going in the wrong direction — like companies are making huge profits, laying off people at the same time, [and] the CEOs get a pay rise of 30 to 40 percent,” said Kahrs.

The Left party’s vision for society includes higher taxes for corporations, a wealth tax, re-nationalizing some privatized companies, boosting welfare and jobless benefits, and increasing pensions. The party also wants to end all of Germany’s military missions abroad.

Populist promises?

Critics say The Left and Lafontaine’s ideas are dangerous for Germany’s economy and its relationship with its allies, and the party’s politicians are making promises they could never keep.

“It’s like Christmas and Easter and everything you can wish on one day. It doesn’t work,” said SPD parliamentarian Kahrs.

On the streets of Saarbrücken, where Oskar Lafontaine used to be mayor, there has a lot of discussion about The Left party.

“There’s a yearning for a clear, understandable message and vision and that has helped the party. Through simple language, they connect with everyday people and offer protection against globalization,” said Bernd Thomas, 48, who was shopping in this western German city on the French border. “I think they’re a good pinprick for the establishment, but I wouldn’t really want to see them in power.”

But now The Left has a firm place on Germany’s political map – it has representation in 12 of the country’s 16 state parliaments – joining the Christian Democrats, Social Democrats, Free Democrats and the Greens in a national five-party landscape, that has made Germany’s traditional model of building governing coalitions at the state level almost obsolete.

But observers say many voters regard The Left as too radical to govern on a federal level. The party counts among its ranks hardcore communists and former members of the Stasi, the feared East German secret police. Conservative Interior Minister Wolfgang Schäuble recently described parts of The Left party as “a clear extremist threat,” and Germany’s domestic intelligence services have been monitoring individual members since the party’s inception.

However, others point out that Germany’s environmentalist Green party was also considered too extreme when it burst on the West German political scene in the early 1980s. But in 1998, it became junior coalition partner to Schröder’s Social Democrats for seven years.

But the Greens and the SPD no longer have enough support to set up a government on their own, meaning for The Left party it could just be a question of time before they’re called upon to help form a left-leaning federal coalition in Berlin.

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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