German Economy Nears Collapse As Election Nears

Presenting the CDU/CSU’s manifesto on Tuesday. Merz said he would make savings of €100bn by reducing spending on migration and welfare. He also promised tax cuts and lower electricity prices to kick-start the economy, stuck in its first two-year contraction since the early 2000s. Meanwhile, the SPD and Greens pledged to reform Germany’s “debt brake”, its constitutional cap on new borrowing, saying the country needed to invest billions of euros in its ramshackle infrastructure and the green transition.

Meanwhile, the SPD and Greens pledged to reform Germany’s “debt brake”, its constitutional cap on new borrowing, saying the country needed to invest billions of euros in its ramshackle infrastructure and the green transition. Some observers worry Scholz’s televised intervention could end up setting the tone for the rest of the contest. Even the Greens, his allies in government, expressed disapproval. “One is sometimes surprised by his choice of words,” said Franziska Brantner, the Greens co-leader. Germany is not used to rambunctious, no-holds-barred elections. Under Scholz’s predecessor Angela Merkel, who governed Germany from 2005-2021, campaigns were soporific affairs, lacking the cut and thrust and spectacle often seen in US contests. But Merz is an altogether different politician. Critics routinely describe him as irascible and touchy, given to intemperate outbursts that delight his fans but can put off more moderate voters. But even his detractors admit his powerful oratory can get under Scholz’s skin.

Scholz, too, has changed his tone. As chancellor of a fragile, three-party coalition made up of SPD, Greens and the liberal Free Democrats, he cultivated a decidedly restrained, taciturn style. But that changed in November when he sacked his liberal finance minister, Christian Lindner, triggering the break-up of the coalition after just three years. He has since become a lot more combative. In the vote of confidence debate he accused the liberals of “sabotaging the work of the government” and Lindner of lacking the “necessary moral maturity” required to govern.