Angela merkel

On Sunday, Angela Merkel’s Christian Democratic Union of Germany (CDU) suffered a historic election defeat in their former heartlands of Baden-Württemberg and Rhineland-Palatinate. ‘The state elections struck deep at the heart of the union of the CDU and CSU,’ said Markus Söder, leader of the CDU’s Bavarian sister party, the Christian Social Union. To an increasingly frustrated public, the ruling parties in the capital look tired and devoid of ideas. There is no incentive for Merkel and her cabinet to turn things around. After 16 years in government and on the brink of retirement, she has become a lame-duck chancellor. Some German journalists have even begun to call the whole sorry saga ‘the duck tales’.

Young, polished and confident, Germany’s health minister became the country’s most popular politician in 2020. A darling of the conservative right, Jens Spahn, was even tipped as a candidate to succeed Angela Merkel as chancellor. At the peak of his popularity last November, surveys indicated approval from nearly two-thirds of all Germans. He seemed to reflect the success story that was Germany’s handling of the pandemic, the personification of friendly German efficiency. Fast forward to last week, and you find a defensive Spahn facing a hostile one-hour long grilling in parliament. His arms crossed and his jaw set, the 40-year-old was visibly tense as he braced himself for questions from angry MPs.

Two months ago, a Russian pipe-laying ship called the Akademik Cherskiy left the Baltic island of Rügen to finish the last few miles of the most controversial gas pipeline in the world. Germany hopes that Nord Stream 2 will improve its access to Russia’s vast reserves of natural gas. In America, however, the project is seen as a way for Moscow to exert influence over Europe. Its completion marks the biggest diplomatic crisis in transatlantic relations since the Iraq War and now, as then, we see Germany pitched against the US. But this time, Germany is far more determined. Since its inception, the pipeline —which runs directly from Russia to Germany — has been opposed by many in Europe who share America’s concerns about dependency on Russian energy.

Germans, just like Britons, will have to cope with restrictions during this year’s Christmas holidays. Yesterday, Angela Merkel and the heads of Germany’s federal states agreed on an updated catalogue of regulations that will allow ten adults to meet for a Christmas party. After three weeks of what is widely called a ‘lockdown light’, the infection rates in German cities and regions continue to remain above the threshold that has been set by medical experts. The vast majority of Landkreise (regional districts) have recorded an incidence proportion of higher than 50 cases per 1,000 inhabitants within the last week.

Tensions between Germany and the United States have increased considerably since Donald Trump became president. Trump has repeatedly criticised Berlin for a variety of things, most vocally accusing the German government of failing to pay its way on defence. Trump has said that Europe’s Nato members, including Germany, should no longer rely so heavily on the US to shoulder the costs of maintaining the alliance. The debate has focused on the target agreed by all alliance members that defence spending should reach 2 per cent of each country’s GDP by 2024. Germany’s military expenditure equalled 1.4 per cent of its GDP in 2019.

Coronavirus is grim news for all major economies and Germany is no exception. The country’s economic output decreased by 2.2 per cent during the first quarter of the year, the sharpest fall since the 2008 crash and the second biggest since German reunification in 1990. A double-digit dip in the second quarter, when the full impact of the lockdown restrictions introduced in March become more visible, seems likely. But while Germany is not alone in facing up to grim economic statistics, it is using its economic clout – unavailable to poorer countries in Europe – to try and spend its way out of the crisis. Many German employers have been able to switch staff to shorter working hours during the outbreak, avoiding mass layoffs, under the terms of a government rescue package.

We have often heard over the past weeks how Germany's impressive testing capacity has proven central to combating the coronavirus at such speed. But equally impressive is the speed at which its state and federal governments have reacted financially to save the economy. Like some of the UK's support schemes, Germany has provided various aid packages or Soforthilfe to businesses large and small. Unlike the UK, however, Germany has already managed to pay out billions of euros to those in need. For the self-employed and small businesses with up to ten workers, this has essentially meant free money arriving in their bank accounts within 24 hours of applying, for which they complete only a short online form with their name and tax ID with hardly any further checks.