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Five challenges to Olaf Scholz’s new German government

The the new German government Wednesday’s swearing-in is a unprecedented political test. Three coalition parties – Social Democrats, Greens and Liberal Free Democrats – have never ruled together. And many complications, especially the high prevalence of the coronavirus virus, can trigger their immediate reaction. How they deal with the challenges described below will change the decision history of their relationship.

1 – Overcoming the coronavirus

Olaf Scholz Court takes power with Germany against the fourth Covid-19 wave that has reduced previous operations. The risk of disease is increasing and hospitals are reaching the limits of their capacity. Check the inoculation rate for that very low than in countries such as Spain, Denmark and Belgium, the new leader encouraged All vaccinations are approved. But even those who are ready to deal with the crisis: long queues occur every day outside the vaccination center and doctors’ practices have complained about the lack of shots. Meanwhile, tensions are running high: Last week anti-closure protesters staged protests outside the provincial health cabinet building, a protest that has been strongly criticized by politicians in Berlin.

Karl Lauterbach, health minister

Karl Lauterbach, the SPD health minister, will be responsible for tackling Germany’s biggest health crisis since World War II. Named the “prophet of doom”, Lauterbach has been featured on German television shows since the outbreak, repeatedly warning of the dangers of Covid-19 and promoting aggressive measures to curb its spread. This caused him to be hated by many Germans who rejected coronaviruses and anti-vaxxers. But a well-trained epidemiologist, who has been the dean of the Institute of Health Economics and Clinical Epidemiology at Cologne University since 2008, also doubts many people in his party, who claim to be non-athletes. In the end, Scholz succumbed to pressure from the public and a Twitter campaign based on the hashtag “#WirwollenKarl” – We Want Karl.

2 – Disruptive assets

Chart of rising consumer prices in Germany and the annual change in consumer prices from 2008 to 2021

Scholz is facing more financial problems than his SPD won elections in September. Most of the releases on Monday showed a sharp decline in industrial performance than experts had predicted. Factories are facing a shortage of raw materials and products such as microchips, which have led to import and production problems in the automotive market. In the meantime, inflation hit 6 percent last month, its highest level since the early 1990’s. Experts now believe that Germany could take longer to recover before the Great Depression than the eurozone. Business groups are also worried that the new uncircumcision ban, introduced last month, could deter consumers from approaching Christmas.

Olaf Scholz, Chancellor

Olaf Scholz He has spent a long time in his career preparing for a top job in Germany. The labor lawyer promoted the SPD positions in the 1990s as secretary general in 2002, acting minister of labor during the financial crisis and the mayor of Hamburg from 2011-18. As finance minister under Angela Merkel, she raised billions of euros in support of the epidemic for companies and employees. Even him lost the SPD leadership contest in 2019 he was elected a member of the party a year later and headed for a narrow victory in the September election.

3 – Achieving weather targets and turning on electricity

Nowhere does the wishes of the new government become as clear as it is in its policy on climate change. It seeks to increase renewable energy, generate coal by 2030 – eight years earlier than originally planned – to ban oil and diesel vehicles and to own 15m electric vehicles on German roads by the end of the decade. But some experts are skeptical about how the world will be able to turn on its electricity when all its coal and nuclear power plants have been shut down. It will need to build thousands of new wind turbines and solar panels, new new power grids and more gas-fired power plants. Indeed, the news is an impending “power gap”, with industrial and domestic consumers facing declining energy prices and rising prices. The new government needs to know how to address these differences and achieve its green goals without compromising Germany’s foreign-run economy.

Robert Habeck, finance minister

Robert Habeck will have one of the most difficult tasks in government – to ensure that Germany achieves its climate goals. A philosopher and author who became a politician, became Schleswig-Holstein’s minister of energy and the environment in 2012 and. rose to prominence in the world six years later when he was elected leader of the Greens, along with Annalena Baerbock. The two, known for their political affiliations, managed to unite a party that had long been embroiled in a civil war.

4 – Problems of external policies

Just days before the new German government takes office, US President Joe Biden will resign warned US friends that Russia could be ready to attack Ukraine. Germany, along with others in Nato and the EU, are now accepting the review and will probably sign sanctions if the Russians do so. But this may be one of the first tests of a consensus agreement. Many in the SPD prefer to go easy on Vladimir Putin, in contrast to the hawkish Greens. There may be some controversy over what to do Nord Stream 2, a gas pipeline from Russia across the Baltic, which the Greens object to with the SPD at the back. Mistakes in how to punish Russia could cast a dark shadow over what should be a happy occasion for a new alliance.

Annalena Baerbock, Minister of Foreign Affairs

Annalena Baerbock she will be Germany’s foreign minister and a minor politician in office. The 40-year-old MP and fellow Green candidate will seek to strengthen the power of the ministry whose influence has diminished under Angela Merkel. Treadmill competition as a young man, he took an active part in Green politics, emerging as an international legal expert with a detailed background. He was elected as the Greens’ candidate in the September election but saw his vote drop during the campaign after he was accused of lying and embellishing his CV.

5 – Investment against credit

Scholz last month pledged “modern industrial growth in Germany in more than 100 years”, and his alliance seems to be committed to investing billions in Germany’s economic growth and weapons development. But the FDP insisted that it would also comply with the country’s strict economic laws – especially its ban on new loans, so-called debt. Round this round it could be one of the biggest challenges of the alliance. Its 177-page agreement offers the answer: a lot of money will be spent by KfW, the state development bank, Deutsche Bahn and the federal property agency that will be used to build the new homes. There will also be a final loan next year when the loan – which was temporarily canceled during the epidemic – is suspended. But the lines between the Greens’ sponsors and the financially correct FDP on the most important spending points seem to be fixed.

Christian Lindner, finance minister

Christian Lindner made history in 2000 when, at the age of 21, he became the youngest MP elected to parliament in North Rhine-Westphalia, the most populous country in Germany. He rose in the FDP, becoming general secretary in 2009 and party leader four years later. He was credited with promoting the party culture that was ousted from the Bundestag in 2013. But he chose not to run for office in 2017. pull the plug on the dialog to form a ‘Jamaica’ alliance with Angela Merkel of the Christian Democrats and Greens. This year he took another route, becoming a driving force behind it ‘Traffic light’ agreement between SPD, Greens and FDP – so-called because of their red, yellow and green colors.


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