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GERMAN OF THE WEEK

POLITICS

Gysi: keeping up the family business

He's known for his eloquence and rhetoric, although this week he was just a guy being chased into a bathroom. We're naming Die Linke (Left) party leader Gregor Gysi our German of the Week.

Gysi: keeping up the family business
Photo: DPA

The Linke, for Gysi, is the family business.

Growing up in the German Democratic Republic (GDR), Gysi 's father was a promininent member of the Socialist Unity Party (SED) and served as Minister of Culture.

His uncle Gottfried Lessing founded the Southern Rhodesia Communist Party in what is now Zimbabwe before joining the Communist Party in Britain.

Just don't ask about that sister who went on to become an actor and eventually left the East German state in 1985. 

Gysi's SED membership card was first stamped in 1967 at the age of 19. As the end came near, Gysi worked on the reform of the Travel Bill, whose announcement by a confused Günter Schabowski led to the opening of the Berlin Wall on November 9, 1989.

A month later, Gysi's reformist position within the party made him a natural choice to overtake the chairmanship from Egon Krenz after the SED stepped down from its rule of East Germany.

On Sunday, 25 years after it all went down, Gysi, still key at the Linke party spawned from the SED, apologized with two other leading party comrades.

"Today we renew our apology for the past injustice and our recognition that we must guard democracy and the rule of law jealously."

It was in response to the 4,000 people in Erfurt who protested the coming Red-Red-Green coalition that would put a Linke party politician in charge.

The demonstration prompted federal Green party chief Katrin Göring-Eckhardt to say "Without an apology to its victims, the Left cannot rule."

Days before, singer Wolf Biermann dedicated a song to the Linke where he called the party "dragon spawn" and "rotting vermin".

Gysi has remained at the forefront of the party as it evolved from the SED to the Party of Democratic Socialism until the they joined with upstart party The Electoral Alternative (WASG) and renamed themselves to simply Die Linke, or The Left.

It is through his long-time involvement that Gysi, now parliamentary leader for his party, faces most controversy.

Numerous people have come forward alleging that the politician colluded with the East German secret police, the Stasi, during his time as a lawyer, when he represented high profile political dissidents like Bärbel Poppe and Robert Havemann.

Gysi has challenged all the allegations in court and none of them have stuck.

And despite the allegations and the persistent bitter taste the word Stasi leaves in the collective German mouth, Gysi continues to be re-elected.

It probably helps that he has always maintained his status as a party critic. 

He has criticised the East German government, once saying "the [Berlin] Wall was nothing but stupidity." He defended Chancellor Angela Merkel, herself born in the GDR, when a book accused her of being an informatnt for the SED.

And above all, he maintains that he's honest: "I am really not a trickster," he said in a 1994 Spiegel interview.

He also manages to put on a good show. After being chased into a toilet by two crtics of the Israeli state, he told a journalist "I would rather not report to you over my visits to the toilet."

It was just enough to make the press forget that on the Friday before, he took a speech that was supposed to be about the fall of the wall and instead reminded everyone that there are still discrepancies in East and West German pensions.

A sign of a true politician.

SEE ALSO: Can 'sorry' ever be enough for Die Linke?

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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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