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POLITICS

Germany’s Scholz looks to quell coalition divisions

German Chancellor Olaf Scholz will battle on Sunday to put out the fires threatening his government as the three-way coalition meets for crisis talks on a growing series of disputes.

Germany's Chancellor Olaf Scholz speaks during a press conference after an EU Summit in Brussels
Germany's Chancellor Olaf Scholz speaks during a press conference after an EU Summit in Brussels, on March 24, 2023. Scholz will meet with his governing coalition partners on Sunday amid growing disputes. Photo: Ludovic MARIN / AFP

A little more than a year after taking office, the relationship between Scholz’s Social Democrats (SPD) and his governing partners, the Greens and the pro-business FDP, looks more strained than ever.

Earlier this week, Vice Chancellor and Economy Minister Robert Habeck of the Greens accused his coalition partners of blocking progress, while the FDP’s deputy chief Wolfgang Kubicki compared the Green politician to Russian President Vladimir Putin.

Kubicki later apologised but the damaging row underlines the state of the three-way coalition — the first in Germany’s post-war history.

The alliance got off to a good start in December 2021 under the motto of their coalition agreement — “Dare for more progress”.

It was put to a tough test when Russia invaded Ukraine just two months on, upending decades of German economic and political certainties.

But tensions have since soared — particularly between the Greens and the FDP.

The two are unnatural bedfellows, with the former set on environmental commitments to phase out nuclear energy and combustion engines, and the latter promoting very different economic policies.

“Everywhere you look in the government there are fires,” German magazine Der Spiegel said, with the partners wrangling over priorities and struggling for compromises.

Boiling over

It could not be “that in a coalition of progress only one coalition partner is responsible for progress and the others for preventing progress”, Habeck said at a Green party event during the week.

Sunday’s talks would be a good opportunity to “overcome blockages” on key issues, Habeck also told broadcaster ARD, blasting the coalition’s record and policy leaks.

At the root of Habeck’s discontent is a controversial project put forward by his ministry to ban the installation of new oil and gas boilers from 2024 — a year earlier than previously planned.

The accelerated move from fossil fuels to greener technologies such as heat pumps would be accompanied by a multi-billion-euro package of financial support for switchers, Habeck has promised.

But the idea has caused ructions within the coalition, with critics underlining the costs involved.

“The plans must go back to the drawing board and be fundamentally revised,” Finance Minister and FDP leader Christian Lindner said after a policy draft was leaked to German daily Bild.

Habeck’s determination had something in common with Putin, Kubicki said. Both, he declared, had “a similar belief that the state, the leader, the chosen one, knows better than the people what is good for them”.

As tempers frayed, SPD general secretary said the partners needed to “find a new way of working”.

“This is an appeal to all three parties in government — these public arguments must stop now,” he said.

‘Explosive material’

The boiler bust-up is only one item on a growing list of disagreements, including pension reform, child benefits and cuts to red tape.

The parties agreed in their coalition agreement to speed up the approval process for key projects to revitalise Germany’s creaking infrastructure.

But while the FDP would like to see support for more new motorways, the Greens want to privilege more climate-friendly projects.

The FDP have also rallied opposition against European Union plans to ban cars with internal combustion engines from 2035, finally wringing a compromise solution out of Brussels on Saturday despite Green scepticism.

Spending demands from across government — including more money for Germany’s sclerotic armed forces — have made the maths harder for the finance minister.

Lindner, who has insisted on a return to Germany’s strict constitutional spending limits, was forced earlier in March to push back the publication of spending plans for 2024 due to a lack of agreement.

Divisions over the budget threaten to bring an end to the coalition, if Scholz fails to back his finance minister, political scientist Juergen Falter told Bild.

Much of the coalition’s discord could be traced back to the fact that “the ideas of the Greens and the FDP simply do not fit together”, he said.

Bringing their opposing views together was always going to be difficult, according to Falter.

“Three-way alliances automatically have more explosive material,” he said.

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GERMANY AND RUSSIA

Germany, Czech Republic accuse Russia of cyberattacks

Germany and the Czech Republic on Friday blamed Russia for a series of recent cyberattacks, prompting the European Union to warn Moscow of consequences over its "malicious behaviour in cyberspace".

Germany, Czech Republic accuse Russia of cyberattacks

The accusations come at a time of strained relations between Moscow and the West following Russia’s 2022 invasion of Ukraine and the European Union’s support for Kyiv.

German Foreign Minister Annalena Baerbock said a newly concluded government investigation found that a cyberattack targeting members of the Social Democratic Party had been carried out by a group known as APT28.

APT28 “is steered by the military intelligence service of Russia”, Baerbock told reporters during a visit to Australia.

“In other words, it was a state-sponsored Russian cyberattack on Germany and this is absolutely intolerable and unacceptable and will have consequences.”

APT28, also known as Fancy Bear, has been accused of dozens of cyberattacks in countries around the world. Russia denies being behind such actions.

The hacking attack on German Chancellor Olaf Scholz’s SPD party was made public last year. Hackers exploited a previously unknown vulnerability in Microsoft Outlook to compromise e-mail accounts, according to Berlin.

Berlin on Friday summoned the acting charge d’affaires of the Russian embassy over the incident.

The Russian embassy in Germany said its envoy “categorically rejected the accusations that Russian state structures were involved in the given incident… as unsubstantiated and groundless”.

Arms, aerospace targeted: Berlin 

German Interior Minister Nancy Faeser said the cyber campaign was orchestrated by Russia’s military intelligence service GRU and began in 2022. It also targeted German companies in the armaments and aerospace sectors, she said.

Such cyberattacks are “a threat to our democracy, national security and our free societies”, she told a joint news conference in Prague with her Czech counterpart Vit Rakusan.

“We are calling on Russia again to stop these activities,” Faeser added.

Czech government officials said some of its state institutions had also been the target of cyberattacks blamed on APT28, again by exploiting a weakness in Microsoft Outlook in 2023.

Czech Interior Minister Rakusan said his country’s infrastructure had recently experienced “higher dozens” of such attacks.

“The Czech Republic is a target. In the long term, it has been perceived by the Russian Federation as an enemy state,” he told reporters.

EU, NATO condemnation

The German and Czech findings triggered strong condemnation from the European Union.

“The malicious cyber campaign shows Russia’s continuous pattern of irresponsible behaviour in cyberspace, by targeting democratic institutions, government entities and critical infrastructure providers across the European Union and beyond,” EU foreign affairs chief Josep Borrell said.

The EU would “make use of the full spectrum of measures to prevent, deter and respond to Russia’s malicious behaviour in cyberspace”, he added.

State institutions, agencies and entities in other member states including in Poland, Lithuania, Slovakia and Sweden had been targeted by APT28 in the past, the statement added.

The latest accusations come a day after NATO expressed “deep concern” over Russia’s “hybrid actions” including disinformation, sabotage and cyber interference.

The row also comes as millions of Europeans prepare to go to the polls for the European Parliament elections in June, and concerns about foreign meddling are running high.

Czech Foreign Minister Jan Lipavsky told AFP that “pointing a finger publicly at a specific attacker is an important tool to protect national interests”.

One of the most high-profile incidents so far blamed on Fancy Bear was a cyberattack in 2015 that paralysed the computer network of the German lower house of parliament, the Bundestag. It forced the entire institution offline for days while it was fixed.

In 2020, the EU imposed sanctions on individuals and entities linked to the APT28 group over the incident.

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