Olaf Scholz: The German chancellor on life support

The man who succeeded Angela Merkel has forced early voting, and few expect the social democrat to stay in power with the centre-right Christian Democrats ahead in the polls

Olaf Scholz
AFP
Olaf Scholz

Olaf Scholz: The German chancellor on life support

German Chancellor Olaf Scholz’s term in office looks set to end after his government lost a historic vote of confidence in the German parliament, setting the stage for early national elections following the collapse of his coalition.

Perversely, Scholz had called the vote in order to lose it.

He wanted the Bundestag—the lower house of parliament - to declare its lack of confidence in him so that the first formal step could be made towards triggering new elections. The calculation was that a fresh national vote offered the best chance of reviving his party's political fortunes.

Given Germany's stalled economy and the global crises facing the West, struggling until the scheduled election date in September 2025 risked being seen as irresponsible by the electorate.

And given the deep unpopularity of Scholz’s Social Democratic Party (SDP), the dominant group within the German coalition, few in Germany believe he can now achieve the result needed to remain in power.

The first indication that Scholz’s government was on the brink came in November over a budget dispute. But his coalition had been unsteady for months. He had been reliant on support from the opposition conservatives to pass any new laws, effectively making his administration a lame-duck government.

His was a minority government after an unpopular and notoriously rancorous three-party coalition collapsed when Scholz dismissed his finance minister in a dispute over how to revitalise Germany’s stagnant economy.

Losing the Bundestag vote meant Scholz was obliged to ask the president, Frank-Walter Steinmeier, to dissolve parliament and to formally call new elections, which must take place within 60 days. They have been scheduled for 23 February.

With the campaign already well underway, Scholz told MPs during a three-hour debate that the election would determine whether “we, as a strong country, dare to invest strongly in our future”. He asked:

“Do we have confidence in ourselves and our country, or do we put our future on the line? Do we risk our cohesion and our prosperity by delaying long-overdue investments?”

Even at this early stage in the campaign, Scholz's SDP is trailing heavily in opinion polls. The conservative Christian Democratic Union (CDU) under Friedrich Merz appears to be on course for a return to government.

On 6 November 2024, Scholz's government majority collapsed after he fired Christian Lindner from the post of federal finance minister

Follow the money

Scholz's decision to stage a vote he expected to lose so he could dissolve his own government was described as a "kamikaze" move by the German tabloid Bild. But it is generally the only way a German government can dissolve parliament and spark early elections.

The process was designed specifically by modern Germany's post-war founders to avoid the Weimar era's political instability. Therefore, this vote of confidence is not a political crisis in itself. It is a standard constitutional mechanism that has been used by modern German chancellors five times to overcome political stalemate, and one Gerhard Schröder deployed on two occasions.

On the surface, the collapse of the coalition was sparked by a row over money.

Scholz's centre-left SDP and his Green partners wanted to ease Germany's strict debt rules to finance support for Ukraine and key infrastructure projects. That was blocked by Scholz's own finance minister, Christian Lindner, who is the leader of the business-friendly liberal Free Democratic Party (FDP), which prioritised driving down the debt. Lindner was sacked, and the coalition collapsed after years of unedifying bickering.

Path to power

The 66-year-old Scholz began his career as a lawyer specialising in labour and employment law. He became a member of the SPD in the 1970s and was a member of the Bundestag from 1998 to 2011. Scholz served in the Hamburg government in 2000 before becoming secretary-general of the SPD in 2002, where he served alongside SPD leader and then-chancellor Gerhard Schroder.

AFP
German Chancellor Olaf Scholz (C) casts his ballot during a vote of confidence against himself in a plenary session at the Bundestag (Lower house of Parliament) in Berlin on December 16, 2024

He became his party's chief whip, later entering the first Merkel government in 2007 as federal labour and social affairs minister. After the SPD moved into opposition following the 2009 election, Scholz returned to lead the SPD in Hamburg. He. was then elected deputy leader of the SPD. He led his party to victory in the 2011 Hamburg state election and became the first mayor, a position he held until 2018.

After the SDP entered the fourth Merkel government in 2018, Scholz was appointed as both minister of finance and vice-chancellor of Germany. In 2020, he was nominated as the SPD's candidate for chancellor for the 2021 federal election.

The party won a plurality of seats in the Bundestag and formed a "traffic light coalition" with Alliance 90/The Greens and the Free Democratic Party. On 8 December 2021, Scholz was elected and sworn in, succeeding Angela Merkel as chancellor of Germany.

As chancellor, Scholz has overseen Germany's response to the 2022 Russian invasion of Ukraine. Despite initially being slow to react to Russian aggression, he eventually woke up to the scale of the challenge and oversaw a significant increase in the German defence budget alongside increased weapons shipments to Ukraine. He put the Nord Stream gas pipeline— which was built to supply Germany's future energy needs from Russia—on hold,

Scholz has also played a prominent role in the more recent Gaza conflict. He authorised substantial German military and medical aid to Israel, and denounced the actions of Hamas and other Palestinian militant groups. Even so, Scholz's response to these global security challenges met with opposition from his political rivals.

Nationwide protests

In November 2023, the Federal Constitutional Court demanded budget cuts totalling €60bn to ensure the government would not surpass debt limits as set out in the German constitution. This proved a significant challenge for Scholz's cabinet and contributed to nationwide political protests.

Then on 6 November 2024, his government majority collapsed after he fired Christian Lindner from the post of federal finance minister, a move that ultimately led to the demise of his coalition government.

Irrespective of the election's outcome, few in Germany believe that Scholz will continue to hold the office of chancellor once the outcome is known

Scholz now hopes that, by forcing an early election, he can muster enough votes to defeat the challenge from the centre-right, led by Merz's CDU, with the bloc leading all recent polls. Merz recently described Scholz's administration as "the low point in the 75-year history of the Federal Republic of Germany", adding, "He leaves Germany in a deep crisis, isolated in Europe and politically adrift".

The SPD is likely to go into the election with a staunchly social democratic programme, promising a higher minimum wage, major reductions in social care costs payable by those affected, pension guarantees, higher taxes on wealth and top earners, and ongoing rent restrictions.

AFP
German Interior Minister Horst Seehofer, Finance Minister and Vice-Chancellor Olaf Scholz and German Chancellor Angela Merkel have taken their seats on the government's bench, on March 14, 2018 in Berlin

A likely change at the top

It remains to be seen if German voters will be willing to give Scholz and the SPD another chance after a period when their performance in government was disappointing. The early signs are not hopeful.

Also seeking the top job are the current vice chancellor, Robert Habeck of the environmentalist Greens, Scholz's remaining coalition partner, and Alice Weidel of the far-right Alternative for Germany, which is polling strongly but has no realistic chance of governing because other parties refuse to work with it.

Any new government will almost certainly be a coalition, requiring extensive compromises.

Irrespective of the election's outcome, few in Germany believe that Scholz will continue to hold the office of chancellor once the outcome is known.

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