Scholz unexpectedly captivates the German Parliament, while Merz likewise maintains attention.
The Chancellor heads to Brussels, but first stops by the Bundestag. There, he confronts his primary competitor in the chancellorship race - as well as German industry. Scholz presents an "Industrial Agreement". Merz is surprised: German missiles are to be used to teach Putin a lesson.
The SPD often desires more passion and fervor from their federal chancellor. At least on the day of the government declaration for the EU summit in Brussels, they should feel heard. Olaf Scholz demonstrates an aggressive stance. In his speech, he goes after the CDU/CSU's candidate for chancellor: "Mr. Merz can't even rise from bed without complaining 'Not enough work is being done here'", says Scholz. But if people are working less, it's because of a lack of childcare options for kindergarten and school kids. "That's because the Union's family policy has always been unfair toward families with children." Scholz aligns with many SPD politicians, who have been portraying the CDU chair as an out-of-touch politician for the wealthy since the party leadership's campaign retreat last weekend.
"Mr. Merz, high-achievers in society are not just those who earn a few hundred thousand euros," says Scholz. Later, SPD leader Lars Klingbeil echoes this sentiment, accusing the Union of populism. "Performance isn't measured by income," Klingbeil counters to the Union faction leader Merz, who had called for more respect for the wealthy.
Merz calls for action against migration pressure
Merz has noticed how much the SPD has been focusing on him and his chancellorship bid. "We've heard an impatient, almost desperate campaign speech by a chancellor running out of options," Merz retorts. He questions why Scholz didn't discuss migration in his half-hour speech? After all, "the migration crisis in Europe" is the most pressing issue on the EU heads of state and government meeting's agenda.
Merz suspects that Scholz's silence on the issue is mainly due to pleasing his own faction. The chancellor had threatened his own faction with a vote of no confidence the day before if the Ampel package of laws on internal security and migration did not gain a majority on Friday. Many media outlets report this in agreement. On Friday, a vote will be held on the package, but there is still resistance within the SPD and Green factions.
Merz, however, sees urgent action as necessary. The package of laws is even insufficient, he argues. "The proportion of illegal migration in Germany has increased compared to other countries in the European Union." That is, fewer people have recently come to Europe, but more have come to Germany. CSU faction leader Alexander Dobrindt calls on Scholz to stand with Polish Prime Minister Donald Tusk at the EU summit. Tusk wants to suspend the asylum law because Russian President Vladimir Putin is using migrants as part of his hybrid warfare against the EU. "The whole European Union is at risk of being destabilized," Dobrindt warns.
Scholz announces "Industrial Agreement"
In Brussels, economic growth in Europe will be a focus. Germany has been lagging behind in growth under the traffic light coalition, Dobrindt complains. Merz notes: "All other countries in Europe have more or less steady growth." Only Scholz needs to explain why his country has experienced a recession for the second year in a row.
Translation:
Indeed, Scholz is traveling to Brussels with at least some kind of plan. He announces in the Bundestag that he plans to invite representatives of industry, associations, and trade unions for a discussion later this month. An "industrial agreement" is what the Social Democrat has in mind, "to move Germany forward." Scholz makes it clear that he wants to fight for every industrial job in Germany. "Industry is the foundation of our prosperity," he says, and he wants to present an "industrial policy agenda" in line with that sentiment.
A final attempt to circumvent the debt brake?
Klingbeil later adds: "Neither ideology, nor petty squabbles, nor lack of money should stop this industrial agreement. It's about setting the right priorities in this country." After both the Federation of German Industries (BDI), trade unions, and economists without SPD affiliation have called for substantial investments to boost the economy, the Chancellery seems to want to push the issue. The coalition lacks money in the budget, and the debt brake sets tight limits on new debt. It is possible that Scholz is now trying to exert pressure on the coalition partner FDP: Suspending the debt brake or setting up a special fund for the economy are, in the view of most Social Democrats, ways to quickly secure capital for investments.
That the Union could help the traffic light coalition is not evident in the plenary debate on Scholz's government statement: 300,000 industrial jobs have vanished under the traffic light coalition, and a historically unprecedented amount of economic capital has flowed abroad, says Merz. This outflow is the "daily vote of no confidence" by companies against Scholz's economic policy, says Merz. He rejects the SPD's proposed higher taxation of top earners and the rich to finance broader tax relief. "You have overlooked that those you are addressing are the medium-sized companies in Germany that are meant to create jobs," he tells Scholz.
Merz demands that Putin be given an ultimatum**
As Scholz attempts to establish a firm stance with his industrial pact, Merz surprises with a different approach: He advocates for a stronger opposition towards Russia, rather than yielding to nuclear threats. "Mr. Federal Chancellor, it's high time for us to conquer our apprehension towards Putin to put an end to the atrocities in Ukraine." In harmony with European allies, Scholz should establish a deadline for the Russian president: Russia must cease bombing civilian facilities like power plants and hospitals in Ukraine. Should Russia fail to comply, the West will abolish the limits on weapons supplied to Ukraine, and Berlin will provide the controversial Taurus cruise missiles. So far, Scholz has turned down both proposals.
Merz distanced himself from BSW and AfD with this demand, slamming them for their unsuccessful, disjointed mediation attempts. Putin has no inclination towards a truce. Even more noteworthy, Merz openly opposes Saxony's Minister President Michael Kretschmer and Thuringia's CDU politician Mario Voigt, who, in collaboration with Brandenburg's head of government Dietmar Woidke, advocate for more diplomacy rather than additional armament deliveries. All three are currently attempting to form a state government with Bündnis Sahra Wagenknecht (BSW) involvement.
The SPD does not applaud.
With the FDP's parliamentary leader thanking Merz for this clarification, SPD leader Klingbeil recalls Merz's silence during the state elections in Brandenburg, Saxony, and Thuringia. "To keep quiet during a phase when the campaign was in East Germany and have nothing to say, that's cheap at this point," says Klingbeil. Therefore, it's also "cheap" to now instigate a conflict with the Chancellor. In fact, the war in Ukraine, alongside migration, was one of the main topics in the eastern states. The SPD and Greens predominantly stood alone in their support of Ukraine. The Union shied away from the unpopular issue and instead sought to gain points with migration policy against the traffic light parties. While the BSW and AfD garnered support in the East with their criticism of arms deliveries. They seem to be continuing this trend. AfD parliamentary leader Tino Chrupalla accuses the federal government of "one-sided partisanship" in favor of Ukraine and Israel. The AfD, on the other hand, demands that no weapons be supplied to conflict parties at all. The existence of Israel is "not even up for discussion," says Chrupalla, two weeks after the Iranian air strike on Israel. In her speech, Wagenknecht even accuses Scholz of "taking his instructions from Washington." The Ukrainians "don't need any more weapons," said Wagenknecht. "And they don't need any insane war plans that ultimately openly aim for NATO's involvement in the war." The following speakers from the coalition and opposition factions are almost speechless: they accuse AfD and BSW of speaking on behalf of Moscow and Tehran. This dispute also provides a glimpse into the upcoming federal election campaign.
Despite Merz's focus on migration and Scholz's perceived neglect, the chancellor has other concerns. He plans to invite industry representatives for a discussion to create an "Industrial Agreement," not designed to be used as a political tool, but aimed at boosting Germany's industrial sector and ensuring job security.
The Union, however, is critical of Scholz's approach, pointing out the loss of 300,000 industrial jobs under the traffic light coalition and a historically unprecedented flow of economic capital abroad. They argue that Scholz's proposed taxation of the rich to finance broader tax relief overlooks the medium-sized companies in Germany.
