14/06/24View in Browser

Germany needs another summer fairy tale

By Jonathan Packroff

With Germany in the throes of economic stagnation and political infighting, the only thing that could lift Europe’s largest economy out of the doldrums, it seems, is success in football at its home tournament.

German national football coaches, known as Bundestrainer, usually have a difficult job. The country is said to have “83 million Bundestrainer” – i.e. all of its population – so the coach has to justify decisions against a country full of people who think they know better.

For Julian Nagelsmann, the current Bundestrainer, however, the task will be particularly challenging.

With the European Football Championship hosted by Germany starting today, it seems like the country’s whole sentiment hinges on how far he can lead the national team.

And the mood is pretty bad.

Germany likes to see itself as an economic powerhouse – or even Exportweltmeister (the world’s export champion) – but it has been cursed with economic stagnation ever since Russia’s attack on Ukraine forced it to decouple from Russian gas supply.

The coalition government is unpopular, as it spent the last two and a half years infighting and, as many see it, restricting people’s freedom in what Green Vice-Chancellor Robert Habeck called a “test” for how far the population is willing to go in tackling climate change.

Fears dominate the public discourse.

A representative survey of voters in the European election saw concerns over declining living standards (50% of respondents) not even making the top spot, remaining behind fears of too much immigration (53%), too much change (56%), restrictions on freedom of speech (58%), too much influence from Islam (61%), climate change (66%), and crime (74%).

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A Conservative Party flier during British chief secretary to the treasury's press conference in London, Britain, 14 June 2024. Trott highlighted the Labour Party's tax policies. Britain is to hold a snap election on 04 July. EPA-EFE/ANDY RAIN

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The Roundup

G7 leaders discussed on Friday how to protect their domestic industries from Chinese overcapacity without causing a trade war with Beijing and keep in check China’s alleged support for Russia’s military expansion.

Officials from the 27 national governments decided in Brussels this morning that the contested Nature Restoration Law would be discussed by ministers at Monday’s (17 June) Environmental Council – but not voted upon.

EU leaders meeting in late June will stress the need for a competitive Europe and highlight how the green transition and a genuine energy union can support that aim, according to a draft document seen by Euractiv.

After intense negotiations, France’s leftist “Front populaire” alliance unveiled its program on Friday, three weeks ahead of the early parliamentary elections on 30 June and 7 July.

Provisional tariffs on China-made electric vehicles (EV) announced by the European Commission on Wednesday are too low to protect Europe’s automobile industry from Beijing’s state-subsidised car exports, a former top US trade official told Euractiv.

Revision of EU spending priorities, including regional development and agricultural support, should be prioritised over discussions on a new programme of joint EU borrowing, said Ole Funke, coordinator for EU fiscal policy at the German Chancellery.

For more policy news, check out this week’s Tech BriefEconomy Brief, and the Agrifood Brief.

Look out for…

  • G7 summit in Italy on Thursday-Saturday.
  • Ukraine Peace Conference in Switzerland, Saturday-Sunday.
  • Environment Council on Monday.
  • Informal EU summit on Monday.

Views are the author’s

[Edited by Zoran Radosavljevic/Alice Taylor]

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