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POLITICS

What Germany is saying about the US elections

While politicians in Germany could not yet fully comment on the US vote, which was still being counted as of Wednesday evening, many were concerned about what they saw as an "attack" on democracy.

What Germany is saying about the US elections
Foreign Minister Heiko Maas speaking in Berlin on November 3rd. Photo: DPA

German Foreign Minister Heiko Maas on Wednesday urged America's politicians to help maintain “trust” in the electoral system after President Donald Trump prematurely declared victory in the tightly contested race.

“It is important that all politicians who reach people directly, establish trust in the electoral process and the results,” Maas said in a statement, adding that it would be “premature” to comment further given that ballots were still being counted.

“We must now be patient,” said the minister, whose country holds the rotating presidency of the European Union.

Trump had declared himself the winner before all the votes were counted and announced that he wanted to have another count stopped by the US Supreme Court. 

READ ALSO: US-German relations 'on life support' after four years of Trump

The German government as a whole did not want to comment on Trump’s statement Wednesday, pointing out that the final result of the election was still missing. 

“As long as that is the case, the German government is following everything closely, but it does not comment on the state of affairs,” said government spokesman Steffen Seibert.

'Acting anti-democratically'

However, the Social Democrats (SPD), Left Party (Die Linke), Greens and Free Democrats (FDP) strongly criticised Trump's statement.

“A candidate, even if he is the incumbent president, who calls for postal votes not to be counted any further, is acting anti-democratically”, SPD leader Saskia Esken told the Rheinische Post. 

Left leader Bernd Riexinger spoke of a “renewed attack on democracy”, and the Green party politician Reinhard Bütikofer called it an “unprecedented attack”. There had not been anything comparable since the founding of the United States more than 230 years ago, he said.

FDP leader Christian Lindner predicted a “dramatic conflict situation” on public broadcaster ZDF. This could have unforeseeable consequences for the US, but also for the rest of the world, he said. 

“A situation will of course arise in which the United States may not be able to act at all on the international level. They will then only deal with themselves.”

The German government's Transatlantic Coordinator, Peter Beyer, expressed concern that violent clashes could occur if the situation is prolonged. 

“If it takes time to reach a legally binding decision on the election winner, it is to be feared that confrontations between the two camps will also occur on the streets,” the CDU politician told DPA. 

But he added: “I consider the scenario of a civil war to be completely exaggerated.”

The right-wing Alternative for Germany (AfD) was the only party represented in the Bundestag to react cautiously to Trump's premature declaration of victory.

“(Trump's statement) is probably due to the excitement of the election,” party leader Jörg Meuthen told DPA in Berlin, saying that no one needs to worry about the functioning of democracy in the USA.

In Germany, many had hoped for a Biden win. In pre-election polls, a large majority had hoped for the Democratic Party's challenger as US president, with only about one in ten people in favour of Trump.

German-American relations have plummeted to a low point following the election of the the 74-year-old. For four years, he regarded Germany primarily as a rival and not an ally, and even put pressure on it with sanctions.

'We are not prepared for this'

Re-election would catch the German government cold, says CDU foreign policy expert Norbert Röttgen.

“We are not prepared for this,” the chairman of the Foreign Affairs Committee in the Bundestag told ARD television. 

If Trump were to remain president for another four years, there would be an increase in everything that had been experienced in the first term of office. “It makes a difference whether you doubt NATO for four years or whether that happens for eight years.”

READ ALSO: Germans 'more worried about Trump than coronavirus'

Beyer stressed, however, that Germany would have to strive for constructive cooperation with the US even if Trump won the elections. 

“It would be downright irresponsible of us to definitely retreat into the dung heap if Trump wins,” he said.

Before the election, Maas had announced that, regardless of the outcome, he would approach the US with proposals for a fresh start in transatlantic relations. He spoke of a “New Deal”.

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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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