Scholz says coalition on track to modernize Germany
July 14, 2023
German Chancellor Olaf Scholz appeared before the press on Friday to take questions on his government's record — the second time the chancellor has faced the annual press conference before heading on summer vacation.
The event, which became an annual tradition under Scholz's predecessor, Angela Merkel, sees questions posed across all policy areas.
What did Scholz say?
The chancellor said the government was on course with its professed aim of modernizing Germany, for instance when it came to climate change.
He expressed optimism about ensuring that 80% of electricity comes from renewable energies by 2030. According to industry information, the proportion is currently more than half.
Investments to stop man-made climate change are taking place in Germany, said the chancellor, with momentum picking up considerably.
Regarding the budget, Scholz pointed out that Germany would return to compliance with the country's so-called "debt brake" this year.
The brake, to which the neoliberal Free Democrats within the coalition attach particular significance, limits new borrowing to the tune of only 0.35% of annual gross domestic product (GDP) and categorically rules out raising taxes.
The rule, enshrined in Germany's Basic Law or constitution, was suspended in 2020 as the government took fiscal action to boost the economy amid the COVID-19 pandemic.
"We're back on track with the budget," said Scholz, a former finance minister.
On defense, Scholz said a 2% of GDP spending target for the military and security would be achieved for the first time in 2024.
The NATO-established threshold will be met with help from a special €100 billion fund set up to modernize the German military after Russia's invasion of Ukraine. Later this decade, Berlin aims to meet the target via its regular budget, something that Scholz underlined on Friday.
Poor polling for coalition parties
According to surveys, a majority of Germans have expressed dissatisfaction with the work of Scholz's government.
Scholz' Social Democrats (SPD) garner less than 20% in the surveys, behind the conservative CDU/CSU block and the far-right Alternative for Germany.
The coalition partners Greens and FDP are also weak in the polls, with the image of the so-called "traffic light" government often marked by disputes.
rc/sms (dpa, Reuters, AFP)
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