Germany in Transition: Political Turmoil and Economic Challenges Ahead of Snap Election

Chancellor Olaf Scholz calls for measures like child benefits before a February snap election, emphasizing a balance between security and prosperity. Germany faces economic contraction, debates over Ukraine aid, and rising populism amid a tense political climate.

Chancellor Olaf Scholz urged political parties on Wednesday to approve key measures, such as increasing child benefits and adjusting tax thresholds, ahead of the anticipated February snap election. Scholz, in a pivotal address to parliament following the collapse of his coalition, emphasized that Germans should not have to choose between security and prosperity.

The political landscape is tense, with opposition parties, led by Friedrich Merz, poised to gain ground, while Germany grapples with economic contraction and trade tariffs. The responsibility to support Ukraine is a focal issue, with Scholz suggesting exceptions to the national debt brake to fund support without compromising pensions or domestic care.

Tensions were palpable in parliament, with Scholz and other leaders showing visible unease. The rise of populist parties further complicates the picture, as Scholz calls for unity to avoid U.S.-style polarization, while Merz advocates a shift in economic and migration policies.

(With inputs from agencies.)