Merkel, Germany’s ‘eternal’ chancellor, prepares to leave the stage

She was called "the leader of the free world" as authoritarian populists were on the march in Europe and the United States but Angela Merkel is wrapping up a historic 16 years in power with an uncertain legacy at home and abroad.

Merkel, Germany's 'eternal' chancellor, prepares to leave the stage
Angela Merkel in the Bundestag on Wednesday. Photo: dpa | Kay Nietfeld

In office so long she was dubbed Germany’s “eternal chancellor”, Merkel, 67, leaves with her popularity so resilient she would likely have won a record
fifth term had she wanted to extend her mandate.

Instead, Merkel will pass the baton as the first German chancellor to step down entirely by choice, with a whole generation of voters never knowing
another person at the top.

Her supporters say she provided steady, pragmatic leadership through countless global crises as a moderate and unifying figure.

Yet critics argue a muddle-through style of leadership, pegged to the broadest possible consensus, lacked the bold vision to prepare Europe and its
top economy for the coming decades.

What is certain is that she leaves behind a fractured political landscape, with the question of who will govern Germany next wide open just weeks before
the September 26 election.

Assuming she stays on to hand over power, she will tie or exceed Helmut Kohl’s longevity record for a post-war leader, depending on how long the
upcoming coalition negotiations drag on. 

‘Do the right thing’

The brainy, unflappable Merkel has served for many in recent years as a welcome counter-balance to the big, brash men of global politics, from Donald
Trump to Vladimir Putin.

With Vladimir Putin at a 2009 meeting in Berlin. Photo: dpa | Gero Breloer

A Pew Research Center poll late last year showed large majorities in most Western countries having “confidence in Merkel to do the right thing regarding
world affairs”.

However the last days of her tenure have also been marred by what Merkel called the “bitter, dramatic and terrible” return of the Taliban to power in
Afghanistan – a debacle in which she shares the blame as German troops pull out.

A trained quantum chemist raised behind the Iron Curtain, Merkel has long been in sync with her change-averse electorate as a guarantor of stability.

Her major policy shifts have reflected the wishes of large German majorities – among them phasing out nuclear power after the 2011 Fukushima disaster – and attracted a broad new coalition of women and urban voters to the once arch-conservative CDU. 

‘Austerity queen’

Before the coronavirus pandemic, her boldest move – keeping open German borders in 2015 to more than one million asylum seekers – seemed set to determine her legacy.

But while many Germans rallied to Merkel’s “We can do it” cry, the move also emboldened an anti-migrant party, Alternative for Germany (AfD), ushering a far-right bloc into parliament for the first time since World War II.

At the same time, hardline leaders such as Hungary’s Viktor Orban accused her of “moral imperialism” with her welcoming stance.

Six years on, she lamented this month, the European Union appears no closer to a unified policy on migration.

The woman once known as the “climate chancellor” for pushing renewables also faces a mass movement of young activists arguing Merkel has failed to face up to the climate emergency, with Germany not even meeting its own emissions-reduction commitments.

She became Europe’s go-to leader during the eurozone crisis when Berlin championed swingeing spending cuts in return for international bailout loans for debt-mired countries.

Angry protesters dubbed her Europe’s “austerity queen” and caricatured her in Nazi garb while defenders credit her with holding the currency union together.

More recently, despite admitted missteps in the coronavirus pandemic including a sluggish vaccine roll-out, Germany’s infection levels and death toll have remained lower than those of many European partners relative to its population.

Kohl’s ‘girl’ to ‘Mummy’

Merkel, the EU’s and G7’s most senior leader, started as a contemporary of George W. Bush, Tony Blair and Jacques Chirac when she became Germany’s
youngest and first female chancellor in 2005.

She was born Angela Dorothea Kasner on July 17, 1954 in the port city of Hamburg, the daughter of a Lutheran clergyman and a school teacher.

Her father moved the family to a small-town parish in the communist East at a time when tens of thousands were headed the other way.

She excelled in mathematics and Russian, which has helped her maintain the dialogue with the other veteran on the world stage, Russia’s Putin, who was a KGB officer in Dresden when the Berlin Wall fell in 1989.

Merkel kept the name of her first husband, whom she married in 1977 and divorced five years later.

After the fall of the Berlin Wall, Merkel, who was working in a chemistry lab, joined a pro-democracy group that would merge with Kohl’s Christian Democrats.

With Helmut Kohl at a CDU conference in 1991. Photo: dpa | Michael Jung  

The Protestant from the east whom Kohl nicknamed his “girl” would later be elected leader of a party until then dominated by western Catholic patriarchs.

As she rose to power, party rivals sneeringly called her “Mutti” (Mummy) behind her back but she deftly – some said ruthlessly – eliminated potential challengers.

Although her name has come up on wish lists for key EU or United Nations posts, Merkel has said she will leave politics altogether.

Asked on her final trip to Washington in June what she looked forward to most, she replied “not having to constantly make decisions”.

By Deborah Cole

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German government urged to tax top earners ‘to fund energy bill’

German economic experts on Wednesday proposed raising taxes on higher earners to help households struggling with soaring energy bills, but the suggestion was immediately shot down by the country's finance minister.

German government urged to tax top earners 'to fund energy bill'

The proposal by the government’s council of economic advisors would see wealthier people pay more through a “temporary increase of the top rate of tax or a very limited energy solidarity levy”.

Earlier this month, Germany presented the details of a 200-billion-euro support package to counter the impact from rising energy costs in the wake of the Russian invasion of Ukraine.

The measures include a partial cap on the price of gas and electricity that will come into force in 2023.

The massive interventions were “justified”, the advisory group said in their annual report.

But support measures needed to be more “targeted”, with wealthier taxpayers carrying a larger share of the burden, they said.

Finance Minister Christian Lindner rebutted the suggestion, saying the “government does not intend to raise any taxes”.

“We are in a period of enormous uncertainty and further tax burdens are extremely dangerous,” he said at a press conference in Berlin.

‘Every billion counts’

Consumer prices in Germany have soared at a rate not seen in decades on the back of energy price rises, with inflation hitting 10.4 percent in October.

While the proposed tax increase would only cover a fraction of the government’s support measures, “every billion counts”, said Monika Schnitzer, head of the expert group.

READ ALSO: Germany plans to cap energy prices from start of 2023

Any levy could apply for around “one year”, she said, to cover the same period as the government’s relief plan.

Limiting the net outlay for support measures was a question of “generational fairness”, Schnitzer said.

“Our children shouldn’t have to pay later… for what we can already afford now.”

Relief measures should be “focused on lower- and middle-income households who otherwise could not carry the heavier burden caused by the energy crisis”, said advisory council member Achim Truger.

Neither should public finances be “overstrained”, Truger said.

The government’s current support measures meant that some people “receive too much relief” despite being better able to afford price rises, said Schnitzer.

“That is bad because we have to take on more debt than we would otherwise have to and because it drives inflation,” she said.

Coalition debate

The proposal is expected to spur a lively debate within Germany’s coalition government between Chancellor Olaf Scholz’s Social Democrats and the Greens on one hand, and the liberal FDP of Lindner, which has positioned itself against tax increases.

The head of the Social Democrats’ parliamentary group, Rolf Muetzenich, said the proposed levy was “very interesting”.

“We must deal with this crisis with solidarity,” Scholz said at the presentation of the report on Wednesday.

Massive support measures were warranted because they would “build trust”, he added.

The expert council also predicted that the German economy will shrink by 0.2 percent in 2023.

European governments are walking a fine line between funding energy support measures to shield their economies and the overall gloomy economic context.

To fund part of its package, Berlin plans to skim off part of the windfall profits made by some energy firms.

The British government was forced last month to abandon plans to abolish the top rate of income tax after the move sparked economic turmoil.