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Germany’s Scholz in India to press on EU trade deal

German Chancellor Olaf Scholz visited India on Saturday seeking to deepen business and defence ties between the two major economies and jumpstart progress on an EU trade deal despite differences over Ukraine.

India Germany
India’s Prime Minister Narendra Modi (R) walks with German Chancellor Olaf Scholz (L) during his ceremonial reception at India's presidential palace Rashtrapati Bhavan in New Delhi on February 25th, 2023. Photo by Sajjad HUSSAIN / AFP

“We want to further strengthen our bilateral relationship with India and our cooperation on global issues, such as mitigating climate change and transforming our economies in a just, green and sustainable way,” Scholz told the Times of India in an interview.

“There is huge potential for intensified cooperation, in sectors such as renewables, hydrogen, mobility, pharma, digital economy, and many more,” Scholz told the paper.

Scholz, accompanied by executives from big German firms like Siemens, met Prime Minister Narendra Modi in New Delhi and was due to head to Bengaluru to visit German software firms including SAP on Sunday.

Scholz said he wanted progress towards a trade deal between the European Union and India that has long been held up by disagreements on tariffs and access for Indian workers to Europe.

“I am in favour of applying more pressure,” Scholz told reporters. “In recent years there have been periods when really not much has happened. My impression is that this is changing.”

Scholz was due to discuss a bid by Germany’s Thyssenkrupp Marine Systems to build six submarines in India in a deal reportedly worth several billion dollars.

Ukraine war

The two sides also differ on the Ukraine war, with India refusing to condemn Russia’s invasion at the United Nations and ramping up purchases of oil from its biggest supplier of arms.

“We talked about the whole situation and exchanged very openly our assessments on the concrete situation that Russia’s attack on Ukraine has created,” Scholz said after meeting Modi.

“I believe one can say that no one here (in India) is under any illusions, including the government, that this is an offensive war started by Russia in order to acquire a part of its neighbour’s territory,” he said.

“I think that it is important that so many countries recently again very clearly condemned Russia’s offensive war (at the UN). But we should know… that also most countries that didn’t vote (in favour of UN resolutions) view and judge it as an offensive war,” he said.

He also said that he and Modi discussed China’s 12-point paper released on Friday calling for a “political settlement” to the crisis, and that it has “both light and shadow”.

“There are things that are noticeably correct, for example the renewed condemnation of the use of nuclear weapons. Missing, from my point of view, is a recognisable line that says there must be a withdrawal of Russian troops,” Scholz said.

Scholz did not say whether he raised concerns about minority and media rights in the world’s biggest democracy during his talks with the Hindu nationalist premier.

Last week Indian tax officials raided the local offices of the BBC in a move rights groups linked to a documentary by the British broadcaster about Modi’s role in deadly sectarian riots in 2002. The Indian government denied the two were linked.
  

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POLITICS

Scholz calls on coalition to ‘pull ourselves together’

German Chancellor Olaf Scholz on Saturday called on his fractious governing coalition to "pull ourselves together" following a dismal showing in EU parliament elections last week.

Scholz calls on coalition to 'pull ourselves together'

In power since the end of 2021, the three parties in government — Scholz’s Social Democrats (SPD), the Greens and the liberal FDP — have been at loggerheads on a wide range of issues including climate measures and budget spending.

“I think that this is one of the entirely justified criticisms of many citizens, namely that there is too much debate” within the coalition, Scholz told German television channel ZDF on the sidelines of the G7 summit in Italy.

“We need to pull ourselves together and stick together to reach agreements,” he added.

“The people have the right to demand that things change,” Scholz told public broadcaster ARD.

The three parties in the coalition suffered a severe defeat in the European elections, with the SPD achieving its worst result in a national election since 1949.

Subsequently, Scholz has faced mounting criticism within his own party.

On Saturday, however, Scholz told ZDF and ARD that he was “sure” that he would be the SPD’s next candidate for the chancellorship in the parliamentary elections scheduled for autumn 2025.

In the very short term, a new test awaits the coalition, which must reach an agreement on the 2025 budget by the beginning of July.

The FDP’s finance minister is opposed to any exceptions to the rules limiting debt and to any tax increases.

On the other hand, the SPD and the Greens are opposed to cuts in social welfare or climate protection.

The debate is also focused on increasing the resources allocated to the German army.

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