Europe’s expectations and concerns about the new German traffic light government led by Schultz

“Dear Olaf, we will write a chapter together. For French, Germans and Europeans“Said the French President.” Congratulations, dear Olaf Schultz, you have been appointed Chancellor of Germany. I wish him a good start, and I believe he will continue to cooperate to build a strong Europe”, the chairman of the committee said. Ursula von Delane, Merkel’s party and government partners.

“Good luck, dear Olaf Scholz, you have been appointed as Federal Chancellor. Look forward to A strong and sovereign Europe“The President of the European Council said, Charles Michel, The new prime minister Joint press conference in Brussels on Friday“We hope you and your government will have success and good luck in dealing with the difficult tasks facing Germany and Europe. The European Parliament looks forward to working with you,” said the President of the European Parliament. David Sassoli.

The EU welcomes Schultz, an old acquaintance of all leaders. As Merkel’s No. 2 person and finance minister since 2018, the new prime minister has played an important role. Key role in creating 750 billion next-generation funds EUR Come to rescue Spain and ItalyAnd he managed to break the outgoing prime minister’s boycott of the United European debt issue. At Ecofin, he established a close relationship with the first vice president, Nadia Calvinho.

EU leaders believe that the new prime minister will Continue to implement the final phase of economic policies that are more flexible than Merkel, Because he co-starred himself. No one doubts Scholz’s deep belief in Europeanism and his willingness to exercise cautious and pragmatic leadership in Europe, neither ostentatious nor arrogant. The quality is very similar to its predecessor.

There is no partner for the new prime minister Government traffic light They caused anxiety in Brussels.Both the Green Party and the Liberal Party are very pro-European, and in the end Their most extreme positions cancel each other out. The first to defend in the EU’s campaign to relax deficit and debt rules And convert Next Generation becomes a permanent investment vehicle on a European scale.In contrast, liberals are Same as thrifty Nordic people who advocate austerity.

Schultz is a kind of balance, a complex of his partners, and this is reflected in the alliance’s plan.exist Stability Pact reformThe new German government, which was suspended at the beginning of the pandemic but is expected to restart in 2023, will defend three goals that are not always consistent: ensuring growth, maintaining debt stability, and Promote green investmentThe new fiscal rules must be simpler, more transparent, and easy to apply.

about Next generation background, The government’s plan shows that it is a limited tool, both in terms of its endowment and time.In other words, a priori Does not include making it a permanent toolOf course, the Semaphore Alliance made it clear that it will not authorize payments to countries that put judicial independence at risk. Merkel’s position on Poland and Hungary is firmer.Finally, Germany will unlock the creation European Bank Deposit Guarantee Fund, Spain’s traditional proposition.

Even the future Minister of Finance, the liberal hawks Christian Lindner, Showing signs of flexibility in recent days. First, he praised Kyriakos Mitsotakis’s Greek reform policy, which he said should inspire Germany. He also denied that his political priority is simply to restore austerity. “Germany will respect stability while allowing investment in competitiveness”, Said this tuesday.

Of course, Lindner is worried about the huge increase in public debt in euro zone countries during the epidemic and the unstoppable rise in inflation. In November, the German inflation rate soared to 6%, the highest level in 30 years.

If economic expectations are continuous, then EU leaders believe that the best transformation of the new Schultz government may occur in the field of diplomatic relations.In the face of Merkel’s extreme caution and appeasement policy, the new Foreign Minister Green Annalena Balbok, Defending Europe’s more aggressive stance against China or Russia.Current tensions with Moscow are escalating Suspect that Putin intends to invade Ukraine In the next few weeks, this will be yours First test.

This transition in Brussels is also hopeful, because Germany may eventually support a more ambitious and autonomous security and defense policy as Macron advocates; there are also some concerns about the fear of the unknown. However, Balbok will visit the NATO headquarters in Brussels on Thursday to begin his term, which also shows that he attaches great importance to transatlantic cooperation with the United States.

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