Schäuble: Islamists top threat to Germany

Presenting the government's annual domestic intelligence report, Interior Minister Wolfgang Schäuble on Thursday said Islamic fundamentalists posed a bigger threat to Germany than neo-Nazis, anarchists or other extremist groups.

Published: 15 May 2008 13:12 CEST

Schäuble: Islamists top threat to Germany

Police outside an Islamist trial in Frankfurt. Photo: DPA

Islamist terrorism “continues to be the greatest threat to stability and security in Germany and Europe,” Schäuble said in Berlin.

It is only thanks to hard work from German intelligence services and their partners in other countries that there have as yet been no serious terrorist attacks in Germany, Schäuble said. He said Germany continues to be a target for terrorists because of its growing military engagement in Afghanistan and the strengthening of the terrorist network Al Qaida.

Intelligence services must develop their ability to gather information in order to prevent future attacks, Schäuble said.

The interior minister also said neo-Nazis continued attempts last year to infiltrate mainstream German culture, especially by offering recreational programs for young men. Violent right-wing groups are increasingly operating across national borders, he said.

According to the government report issued Thursday, there were 28,538 politically motivated crimes in Germany last year – a slight decrease over 2006. The report attributed 980 crimes to right-wing groups, a slight decrease, and 833 crimes to left-wing extremists.

The government report tallied 4,400 neo-Nazis in Germany in 2007, an increase of 200 people over the previous year. Some 6,300 potentially violent leftists were tallied in 2007.

There were few substantive changes in Germany’s extremist left, Schäuble said, despite the much-publicized rise of the hard-line socialist Left party, Die Linke. Germany’s domestic intelligence services have long been monitoring individual members of the party, formed in part from the ashes of the East German communist party.

“We must continue to monitor The Left party,” Schäuble said, saying there are extremist elements within the party.

Schäuble continued to reject calls to ban the neo-Nazi NPD party, saying a ban “could result in an outcome opposite to our hopes” and adding that right-wing extremism is best fought on a political stage.

Many argue that banning the NPD altogether could push it underground – making it more dangerous and perhaps even more attractive to people who are disaffected with politics.

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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.

“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.”

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.