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Germany's close election limits its ability to lead Europe
Ian Bremmer's Quick Take: Lots going on the German elections. Probably the most important though, everything around Europe and Russia and Ukraine and the United States kind of dominating the headlines right now. Germany went pretty much the way we all expected. The polls have been very, very steady over the course of the past couple of months. The big question was whether or not you could have a two-party or a three-party coalition that really depended on whether or not parties that were small would get over the 5% hurdle that allows them representation in Germany's parliament, in which case it would be harder to put together a government. You'd need three parties or whether they would stay out. The latter turned out to be the case. Didn't find that out until three A.M. in Germany. Very unusual how close in that regard the election was for those smaller parties, and that means you're going to get a grand coalition, a two-party coalition center-right and center-left.
They don't agree on a lot of policies. It is hard to get good outcomes politically from that kind of a coalition, but it's not unusual in Germany. The other big news, the Alternative für Deutschland performing about as well as they were expected to over the course of the past couple months, they came in a solid second. They won across former East Germany and they got single digits across former West Germany. But that's better than they performed last time around, even though their popularity has been high for a while now, certainly if you think about their trajectory over the some 12 years since they were founded, this is now a party that has a solid shot of being number one in 2029 next German elections, especially if the Germans are unable to turn their economy around. Though on migration, most of the German political spectrum has aligned with where AfD, more or less is just as we've seen across many countries in Europe, like in Italy and in the UK and France and elsewhere.
Okay. So that's the near-term outcome. Still a grand coalition is going to have a hard time spending a huge amount of money on defense or on Ukraine aid or on German growth. And there is some urgency in seeing if you can at least pass more German defense spending outside of their hard fast debt break while the present Scholz-led three-party coalition is in place. Why? Because there is a constitutional majority blocking capacity among the hard left and hard right parties, Die Linke and the AfD in Germany, which means that unless you get one of them on your side, you're not going to be able to do that spending. So the big takeaway here is Germany is probably going to have a really hard time really stepping up as a leader on doing far more in Europe for Europe than even you've seen under Scholz. It's going to be a more powerful government, but not the kind of power that they really need.
So here's a situation where Friedrich Merz, who will be the next German chancellor coming out immediately and saying that they can no longer count on the United States, that even NATO's existence as we look forward to the June NATO summit is open to question that Germany and Europe are going to have to have European defense without the United States, independent of the US claiming that American intervention in Germany's election in favor of the AfD considered by the other German parties to be a neo-Nazi party is as striking and dangerous in intervention and unacceptable as Moscow interventions into Germany's democracy. In other words, the German leadership, the next German chancellor, understanding that the US is an ally, believes that Trump and his administration is an adversary, is an enemy. And that is a truly shocking thing to hear from the incoming German government. Having said all of that, saying it is one thing, taking action to ensure that the Europeans are capable of defending themselves is quite another, and they're nowhere remotely close to that.
Macron in the United States today will be meeting with Trump shortly, meeting with him by himself. Kier Starmer from the UK later this week, same. Are their positions coordinated? More than they have been. But can they do enough? Can they put enough on the table in terms of financing, in terms of boots on the ground in Ukraine absent an American backstop? No, they can't. And I think as a consequence, the baseline expectation is that the US effort at rapprochement with Putin is going ahead. That the US effort of cutting a deal with Putin on Ukraine over the heads of the Ukrainians and the Europeans is largely going ahead. And this of course bodes very badly for the future of Ukraine and Zelensky, but also really does undermine the existence, the strength of NATO as the world's most important collective security agreement. I don't see Trump as wanting to end all military cooperation in Europe.
He just met with the Polish president. It was a very short meeting, supposed to be an hour was 10 minutes. But the important thing for the Poles was announced, which is the US is still committed to maintaining American troops on the ground in Poland. Why? Because Poland is not only very friendly to the US, but it's also moving towards 5% of GDP spend on defense in this year. And it's also said that they're not sending any troops to Ukraine in a post-ceasefire environment. Why not? Well, number one, because they need troops on the ground in Poland. But number two, because the Russians have said that they won't accept any European troops, and right now that's Trump's position. So Poland doesn't want to undermine their important defense protector, the Americans and President Trump. All of this is to say that there's probably going to be more division inside Europe as a consequence of these policies that Trump is putting forward. It's going to be very hard for him to maintain strong unity of Europe, even as they are facing more existential challenges economically in terms of their competitiveness, their growth, and most importantly in terms of their national security. So that's where we are right now. Enormous amount of news coming down the pike this week. Haven't even talked about the latest on Israel and Gaza and China and everything else. But if this is the big news, might as well cover it. Talk to you all real soon.
Ukraine hopes for Europe's help as US negotiates with Russia
Ian Bremmer's Quick Take: So much going on around the major confrontation between Russia and Ukraine. The Americans now meeting with the Russians in Riyadh while the Europeans have had an immediate emergency summit, many of them. Not all of the EU, but rather if you will, a coalition of the capable and willing in Paris yesterday.
Where is all of this going? Well, the Europeans clearly now understand that they need to come up with a deal that includes Ukraine before the Americans and Russians create some kind of grand bargain, or a deal will be made over their heads, and probably one that they are not going to be very happy with. President Zelensky of Ukraine is looking much more desperate in this environment, understanding that he is in trouble, not only because his forces are having a hard time maintaining the front lines, that's been true for a while now, but also because he is in danger of losing the United States.
The deal that was offered by Secretary of Treasury Bessent to Zelensky in Kyiv in the past days was exploitative. It was referred to by Zelensky as colonial. It would have meant 50% of development rights, exploitation rights of European resources, Ukrainian resources would go to the United States in a privately held company that the Americans would own. And that this was going to pay primarily for aid that had already been given to the Ukrainians. In other words, under the Biden administration, which is kind of unprecedented and staggering, but nonetheless was the offer. He immediately rejected it, but of course, that has led to a big rift all of a sudden between the United States and Ukraine at a time where Zelensky had been doing everything possible to say, "Yes, we know we need peace. Yes, we know we need to work with Trump. Trump is a peacemaker. We're going to engage." That is a very different position right now.
So, he is counting more on the Europeans, but can the Europeans give him anything? Well, coming out of the meeting in Paris, the answer is not so much. First of all, because Olaf Scholz, who is still chancellor for another week before the Germans have elections, said that it was premature to talk about peacekeepers. Premature? When the Americans are about to cut a deal with the Russians, it's not premature. It's way too late. So Olaf looked weak, he looked bitter, and he undermined any possible consensus. So, this meeting was a real problem.
Still, you had Macron, who was talking about the need to commit peacekeepers. You had the Brits, who wavered. They were saying they're definitely going to commit, but only if there's American backstop, which the United States wouldn't support. Poland had said, "No," because they need all of their troops in Poland, which is a sign of great weakness there and deep concern. The Baltics, the Nordics, they would certainly provide something. It is going to take time, though, and time is one thing they do not have.
We will see what comes out of the Marco Rubio meeting that he is leading his delegation in Riyadh together with a super team of major negotiators from Russia. I say super team because that's the way it's been presented on Russian state media. They have been, for the last 24 hours, extolling Trump, extolling the importance of the special presidential plane they are bringing down to Riyadh for these meetings, talking about the potential of recreating an order between the United States and Russia that is not just about Ukraine, but is about NATO containment. Is about engaging in, essentially carving up the world a sphere of influence orientation, where the Russians get a piece of the Arctic, and the Americans get a piece of the Arctic. And the Russians have their territorial ambitions codified, and the Americans have their own territorial ambitions codified. It is absolutely the antithesis of the world that the Europeans want and that frankly, the Americans had been standing for post-World War II.
Increasingly, the Europeans feel like they are fighting a two-front war, from the Russians on one side who are a direct national security threat, and the Americans who are saying that the Europeans' threat is from inside the house and that the EU is a problem, and you want people who are going to make Europe great again, like the AfD in Germany, who 80% of the Germans consider to be a neo-Nazi party. This is a crisis for the transatlantic relationship. It is a crisis for NATO. The secretary general, indeed, attending those meetings in Paris, what he has to say between the Europeans and the Americans, I'd hate to be in his position right now.
Anyway, lots happening every day. That's where we are right now, and I'll talk to you all real soon.
The Bundestag has withdrawn its confidence in Chancellor Scholz, paving the way for a new election on February 23, 2025.
Germany’s government collapsed, what now?
Speeding up the election timeline is good news for a country that is in desperate need of leadership. The next Chancellor will have to confront economic and fiscal crises, quell growing populist sentiment, bridge social divisions, and stand up to NATO-weary Donald Trump.
Who will lead Germany next? Scholz will run again, but his main competitor and leader of the center-right Christian Democratic Union, Friedrich Merz, is favored to win. If he can peel off at least one of the traffic light coalition’s partners, he’ll likely be able to create a CDU-led majority. However, the size of the next ruling party's coalition will be key in their ability to enact aggressive policies like removing or loosening Germany’s debt brake. If populist fringe parties on the far-left and far-right together secure at least a third of the seats in the Bundestag, major overhauls will remain difficult.Following the end of the "traffic light" coalition, Federal Chancellor Olaf Scholz has submitted a request to the president of the Bundestag for a vote of confidence in the Bundestag.
Viewpoint: Germany seeks new political leadership to address economic crisis
Faced with a political impasse preventing action on acute economic and geopolitical challenges, the German parliament will hold a vote of confidence in Chancellor Olaf Scholz’s government on Dec. 16. Based on an agreement among the main parties in the Bundestag, lawmakers will deliver a vote of “no confidence,” paving the way for snap elections on Feb. 23.
We asked Eurasia Group expert Jan Techau to explain what set off this chain of events and where it is likely to lead.
What has prompted this vote of confidence?
The chancellor called the vote after long-simmering tensions finally brought down the ruling coalition of Scholz’s Social Democrats, the pro-business Free Democrats, and the Greens. There are big ideological divides among these three parties, and it was never an easy marriage. Initially, they could paper over these divides with money for each party’s pet projects. But a little over a year ago, the Constitutional Court struck down large parts of the 2024 budget, saying they were financed with an illegal repurposing of unused pandemic-relief funds. That set up endless negotiations and finally a showdown over the 2025 budget, which ended with Scholz firing the finance minister, the Free Democrats’ Christian Lindner, and the subsequent collapse of the coalition agreement.
So, it sounds like fights over spending priorities are the main issue shaping German politics?
They are a symptom of a broader economic crisis that has undermined competitiveness, growth, and tax revenue. The country has high labor and energy costs and a high reliance on exports, especially to China. For a long time, China bought nearly everything that Germany produced, from machinery to cars and chemicals. But China has developed its own industries and is no longer just a customer but increasingly an aggressive competitor making many of the same goods. To put it simply: Germany is a high-cost country reliant on exports whose main customer no longer wants to buy all its stuff.
How are geopolitical issues shaping the domestic debate?
All these economic problems come at a time of mounting geopolitical challenges. Donald Trump’s election victory in the US is expected to bring increased pressure on Germany and other European countries to harden their stances against China. Trump could force Germany to choose between its economic reliance on China and its security reliance on the US. At the same time, you have the war in Ukraine and Russia’s hostility to Germany and the rest of the West that has prompted significant – and very costly – efforts to rebuild Europe’s defense capabilities.
What seems like the most likely outcome of the February elections?
The conservative Christian Democrats, led by Friedrich Merz, have a substantial lead in the polls. It seems unlikely that any other party will be able to close the gap by Feb. 23. They will need to form a coalition government (one-party parliamentary majorities and minority governments are very uncommon in the German system), probably with the Social Democrats and maybe a third party as well. One key watchpoint will be the performance of the two extremist parties, the far-right Alternative for Germany and the far-left Sahra Wagenknecht Alliance. They have no prospect of entering government this time around, but if they obtain a combined one-third of the seats in the Bundestag, they could block legislation requiring changes to the constitution, which needs a two-thirds majority. Such a blocking minority could hamper the next government’s ability to implement a forceful reform agenda.
What is the reason for the conservatives’ strength?
There are two factors. The first is that voters’ number one concern at the moment is the state of the economy. This issue has traditionally favored conservatives, who are seen as more competent in this realm. The second is the collapse in the popularity of the three parties of the ruling coalition amid a widespread sense of crisis and malaise. They have recovered a bit recently, but at one point the approval ratings of the three parties combined were at about the same level as those of the conservatives.
Assuming a conservative-led government emerges, what does that mean for domestic policy?
If the Christian Democrats form a coalition with the Social Democrats, they will have to jettison many conservative ideas. The German system is geared toward stability and continuity, an approach that has worked extremely well, though the downside is that it’s hard to make big changes when needed. The question is whether the current crisis is big enough to force change. I expect an overhaul of the so-called debt brake, a strict limitation on government borrowing that has restrained policymaking. But beyond that, a raft of politically difficult measures are needed to deregulate industries and lower labor costs to restore German competitiveness. We’ll see if the next government can deliver.
How about foreign policy?
There would certainly be more engagement with the EU. The Christian Democrats pride themselves on being the pro-EU party of Germany in the tradition of Konrad Adenauer and Helmut Kohl. My guess is that the next government will remain reluctant to embrace the proposals for common borrowing backed by some other EU countries. Still, it could be more supportive of other joint initiatives. Merz had been more hawkish in his rhetoric toward Russia but has recently toned it down because he knows there are a limited number of votes he can win with this approach. Regardless, foreign policy will be a somewhat lower priority for the next government than getting the economy going again.
Edited by Jonathan House, Senior Editor at Eurasia Group.
Germany faces political uncertainty after coalition collapse
Carl Bildt, former prime minister of Sweden and co-chair of the European Council on Foreign Relations, shares his perspective on European politics from Stockholm, Sweden.
What does Germany's coalition collapse mean for Chancellor Scholz, the country, and Europe as a whole? Well, the collapse of the coalition government was, to some extent, expected. There had been speculations for weeks on how long it was going to hold together, and finally, the Chancellor himself pulled the plug in a rather vicious personal attack against the finance minister. Then he sacked him and then the government went up in flames. Now, what he wants to do is strangely enough to stay in power until January 15th and vote for the confidence, lose vote the confidence in parliament then, and have elections in March. I doubt that will be the case. I think there is now very heavy pressure by the opposition, needless to say.There's pressure by business, there are pressure by others saying that we can't have this uncertainty going on for months and months, particularly in a situation where other things are happening in the world, mildly speaking. So I wouldn't be surprised if we have, for example, a vote of confidence or he has to put himself a vote of confidence by mid-next week or something like that, and Germany is heading for election perhaps very early next year. Then of course, the other question will arise, what kind of government could possibly arise out of that particular election? That's a later, somewhat complicated issue. I guess we will have reason to return to it.
German Chancellor Olaf Scholz leaves the Bellevue Palace, after he sacked Christian Lindner.
Germany’s governing coalition crumbles over budget battle
Germany’s governing coalition collapsed on Thursday after Chancellor Olaf Scholz fired Finance Minister Christian Lindner, head of the pro-business Free Democrats and a linchpin in his majority, likely spurring a vote of confidence.
Germany is struggling in the aftermath of Russia’s invasion of Ukraine, which has sent energy prices skyrocketing, upped defense spending, and brought in 1.5 million Ukrainian refugees. Lindner wanted to spur the economy through tax cuts paid for by slashing social programs and climate change targets, while Scholz pushed for loosening the spending limit.
Scholz’s “traffic-light coalition” has governed Germany since 2021, but internal tensions have been rising for weeks over the 2025 budget amid a second consecutive year of no economic growth. Now, without a majority, his coalition must rely on individual votes from other parties to pass laws until an election is held.
“The big question about this vote of confidence is not the result but the timing,” explains Eurasia Group’s Europe director, Jan Techau, who says the opposition party will try to pressure the vote to happen as soon as possible, though Scholz will try to hold off until at least January.
“It is clear that Scholz will lose the vote. The entire purpose of the vote is to lose it, thereby clearing the way for elections,” says Techau. How Scholz will fare in elections is unclear but will hinge on issues of migration, pensions, cost of living, and the war in Ukraine.
Federal Chancellor Olaf Scholz (SPD) attends the wreath-laying ceremony at Fronhof in memory of the victims of the knife attack at the Solingen town festival. I
What do East German elections mean for next year’s national election?
The far right prevailed in East Germany over the weekend, with the Alternative for Germany party, or AfD, winning its first-ever election in Thuringia and nearly winning in Saxony. The outcome dealt a blow to Chancellor Olaf Scholz’s center-right coalition government and boosted the far right and left ahead of the 2025 federal election.
The far-left BSW party secured third place in both states, making it a key player in upcoming government formation negotiations. Scholz’s SPD party – which barely managed to retain parliamentary representation in both states – is pushing the CDU, the only centrist party to perform strongly on Sunday, to partner with the left to box out the AfD. “In both states, the core of such alliances would be the CDU and BSW,” says Eurasia Group’s Europe Director Jan Techau, “which all by itself is a curious formation given that these two are at opposite ends of the political spectrum.”
What does this mean for the 2025 election? While the far right and left are much weaker on the national level, this election foreshadowed growing division in Germany – as well as Scholz’s rising unpopularity. It also showed that migration and Germany’s support for Ukraine will be the main campaign issues next year. “The AfD will mercilessly exploit these topics, and so will the BSW,” says Techau.
“[Scholz’s] ability to instill discipline in a very diverse coalition was never great and is now further diminished,” Techau adds. “He needs to deliver meaningful migration reform and a halfway solid budget for 2025. These are the two benchmarks. If he can’t do this … his position as the party’s candidate for 2025 will be at risk.”Participants in a left-wing demonstration walk along a street with a banner reading "AfD ban now!". Several hundred people protest against the AfD's performance in the state elections in Saxony.
AfD makes historic gains in eastern Germany
German voters delivered the hard right a significant victory in Sunday’s election, as Bjoern Hoecke’s Alternative for Germany party, or AfD, captured 32.8% of the vote in the central-eastern state of Thuringia. The result marks the first time since World War II that a far-right party has won the most seats in a German state election. In neighboring Saxony, the AfD virtually tied with the center-right Christian Democratic Union, with 30.6% to 31.9%, respectively.
The AfD’s gains have unsettled many Germans, including Chancellor Olaf Scholz, who called the results “bitter” and “worrying.” Business leaders cast their own blame on Scholz for creating an environment of anxiety for voters, which they say led to Sunday’s result and could sully Germany’s business environment.
But Scholz is also feeling the heat from a new leftist party, Bündnis Sahra Wagenknecht, which melds left-wing economics with anti-immigration and pro-Russia policies. The BSW won nearly 16% and 12% respectively in Thuringia and Saxony, cannibalizing Scholz’s junior coalition partners, the Greens and pro-business Free Democrats, who now risk losing their official status in the Thuringian state parliament.
Even though other parties pledge to exclude the AfD from government, there are fears its success, and that of the BSW, could pressure Scholz to take a harder line on immigration and a less supportive line on Ukraine ahead of next year’s national elections. When Ukrainian President Volodymyr Zelenskyappealed to the German Bundestag in June for additional support, AfD and BSW lawmakers left the building – a stunt that appears to have paid dividends in Sunday’s vote.