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German Finance Minister Christian Lindner, Economic Affairs and Climate Action Minister Robert Habeck, and Chancellor Olaf Scholz attend the 2024 budget debate session of the German lower house of parliament, the Bundestag, in Berlin, Germany, earlier this year.
Will Germany’s ruling coalition survive the winter?
An uncomfortable dynamic: Scholz held a summit on Tuesday to discuss Germany’s economic woes but didn’t even invite his finance minister, Christian Lindner of the Free Democrats, who decided to schedule a competing economic summit the same day.
“The three-party coalition is plagued by a lack of internal discipline, weak leadership by Chancellor Olaf Scholz, record-low approval ratings, and deteriorating trust between its leading figures,” says Jan Techau, a Berlin-based Europe expert at Eurasia Group.
Beyond the economic crisis, issues ranging from the rise of the far-right AfD to growing geopolitical pressures brought on by the war in Ukraine and a more assertive China have placed the German government in “a perfect storm situation,” says Techau.
Germany’s GDP grew in the third quarter, helping it avoid a recession, which Economy Minister Robert Habeck on Wednesday said offers a “ray of hope.”
But there are still concerns that the coalition could soon collapse, which would pave the way for snap elections in the spring. While the probability of an early vote has gone up, Techau says it’s still more likely that the government will complete its full term.
The coalition is held together by the “weakness” of the ruling parties and the fact that “early elections are likely to produce disastrous results for all three of them,” adds Techau.
The next general elections aren’t scheduled until Sept. 2025. We’ll be watching to see whether the German government can keep it together in the meantime.
FILE PHOTO: A placard reads, "deport AFD now", during nationwide protests against racism and plans of Germany's far-right Alternative for Germany (AFD) party to deport foreigners, in Bonn, Germany, January 21, 2024.
Can Germany defund its own far-right?
Germany’s Federal Constitutional Court ruled Tuesday that the small far-right Die Heimat party may not receive funding from the federal government because of its anti-democratic and ethno-nationalist goals. Die Heimat isn’t a big player in German politics, but the Alternative für Deutschland is. And as AfD is drawing the support of about 23% of Germans, according to recent polls, centrist parties are eyeing the same pathway to box them out financially.
The AfD has long taken anti-immigration stances, but some senior members may have put the party at risk by meeting with neo-Nazis last year to discuss plans for an extreme program to deport immigrants by the millions, including naturalized citizens. Hundreds of thousands of Germans took to the streets to protest, but calls to ban the party outright are likely to fail due to the high standards German courts impose on such a drastic move. Instead, the recent finding against Die Heimat is fueling calls for a similar motion against AfD, which stands to lose over $10 million in annual public funding.
It’s not all about morality, though. German Chancellor Olaf Scholz’s government faces a bruising negotiation over the 2025 budget, with a sluggish economy necessitating major cuts. The AfD could use the cuts as a populist cudgel to hammer the incumbent coalition in elections in the states of Saxony, Thuringia, and Brandenburg scheduled for September. Scholz’s government is struggling in the three eastern states — but if AfD finds itself light on funds, he might avoid the worst outcomes.U.S. House Speaker Kevin McCarthy (R-CA) arrives to deliver a statement on allegations surrounding U.S. President Joe Biden and his son Hunter Biden, as the House of Representatives returns from its summer break facing a looming deadline to avoid a government shutdown while spending talks continue on Capitol Hill in Washington, U.S., September 12, 2023.
Will the House GOP’s Biden impeachment probe backfire?
After much back-and-forth in recent months, embattled House Speaker Kevin McCarthy has officially launched an impeachment inquiry against US President Joe Biden.
McCarthy says that the inquiry has merit, based on months of preliminary investigation into the Biden family’s business dealings – specifically the global financial exploits of Hunter Biden, the president’s son. Democrats, for their part, say this is a GOP political vendetta in response to the impeachments of Donald Trump, and that Biden himself has committed no impeachable high crimes or misdemeanors.
Still, launching an official inquiry gives relevant congressional committees broad powers to request documents and testimonies – a boon for House Republicans who have already been battling for greater access to Biden family financial records.
Why now? McCarthy is likely trying to throw a bone to far-right House Republicans, known as the Freedom Caucus, who despise the speaker and are threatening to remove him over a host of thorny policy disputes. Most notably, the tear-it-all-down caucus is mad at McCarthy for his apparent willingness to work with the White House to continue to fund the government at current levels through the end of the year. Failure to do so could result in a government shutdown after Sept. 30.
Impeachment is risky for McCarthy and for the GOP. House Republicans in purple districts (many that Biden won in 2020) say this is not a popular move with their voters and that it could backfire in 2024, when House Republicans will have a very narrow majority to defend.
But the Freedom Caucus is out for blood. Prominent McCarthy critic Rep. Matt Gaetz has already called the impeachment probe a mere “baby step.”
US summer travel may be easier than you think, says Pete Buttigieg
Memorial Day weekend signals that the unofficial start of the summer travel season is upon us. And if last year’s travel woes were any indication (paging: Southwest Airlines), we can expect long lines at TSA, full planes stranded on the tarmac, and lots and lots of cancellations. But, according to US Transportation Secretary Pete Buttigieg, things are not as dire as they may seem.
“The good news is that after a very disruptive year last year in terms of the struggles that the airlines had, things are catching up this year. In 2023, the preliminary data show cancellation rates under 2%.” In an extensive interview with Ian Bremmer for this week’s GZERO World. Secretary Buttigieg pointed the finger at airline companies for many of the travel hiccups that made news last year. Issues like staffing and air traffic control are not the main cause, not even close to being the main cause, of flight cancellations and delays. We've been working with the airlines, pressing the airlines, and they have delivered a lot of improvements with what's under their control.”
And, it turns out, quite a bit is under airlines’ control, including that the law requires they reimburse passengers for canceled flights. If that’s news to you, you’re not alone.
Watch the full episode of GZERO world: The road to repair: Pete Buttigieg & crumbling US infrastructure
Key Japanese lawmaker says third extra budget may not be last
The openness to more spending underscores concerns that rising waves of the virus could derail Japan's recovery.
Covid-19 war chest being beefed up
KUALA LUMPUR • Malaysia plans to boost its Covid-19 war chest by raising its ceiling by as much as RM20 billion to RM65 billion (S$21.2 billion), Finance Minister Tengku Zafrul Aziz said yesterday.
Malaysia unveils largest budget to reverse first recession in a decade
Malaysia will continue pump-priming its coronavirus-battered economy, with Budget 2021 unveiled yesterday being the nation's largest ever, in a bid to reverse its first recession in over a decade.
Malaysia's Opposition unimpressed by budget, says bipartisan demands not met
KUALA LUMPUR - Malaysia's Opposition on Friday (Nov 6) said the federal budget tabled by the Muhyiddin Yassin administration lacked a clear direction for economic recovery post the coronavirus pandemic, as several bipartisan demands made by the opposition remained unfulfilled in the budget.