Scholz weathers shocks in first year

FRANKFURT — German Chancellor Olaf Scholz has weathered unprecedented shocks while struggling to make a mark on the global stage in his first year.

The former finance minister took office promising continuity with the era of Angela Merkel, who ended her 16 years as chancellor.

However, the Russia-Ukraine conflict has forced Scholz to rip up Germany’s postwar axioms and chart out new economic, defense and geopolitical directions for the country.

“We never before had a government faced with such a dramatically worsening situation, when it came to foreign and security policy, but also of course energy policy,” political scientist Ursula Muench told Agence France-Presse.

Scholz’s coalition of his Social Democrats and the Greens and FDP liberals had taken office planning ambitious climate policies and budget restraint.

But as Moscow cut its energy supplies in wake of the conflict, Germany has had to halt its planned nuclear exit, and restart mothballed coal power stations while burning through a budgetary hole in a scrum for oil and gas to replace Russian supplies.

Scholz also announced a historic shift in defense, vowing to rearm Germany with a massive boost in military spending.

Rachel Rizzo, a senior fellow at the Atlantic Council’s Europe Center in the United States, warned that losing momentum was a danger, even if the initial response was “impressive”.

“I think not being able to follow through with defense and security commitments is a concern,” she said.

The defense spending is high at a time when the treasury is also being pressed to help cushion a price shock fueled by the energy crisis.

Scholz’s government has managed to implement part of its program, including raising the minimum wage and reforming unemployment benefits.

But with myriad crises not going away, the chancellor’s popularity ratings have plunged. One poll published in August suggested that 62 percent of Germans had an unfavorable view of him, compared with about 39 percent in March.

As well as disagreements at home, there have been tensions with partners abroad.

European Union allies were upset that Scholz announced a 200 billion euro ($210 billion) energy fund without first consulting them, complaining that he should have focused on coming up with EU-wide measures.

Tensions have also arisen in the key relationship between Berlin and Paris over issues ranging from the energy fund to German plans for defense procurement.

As Scholz heads into the second year of his job, many of the open challenges will continue to entangle him.