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UKRAINE

Germany’s Schröder to remain in Social Democrats despite Putin ties

Former German chancellor Gerhard Schroeder will remain a member of the ruling Social Democrats (SPD), the party said Monday, finding his ties with Vladimir Putin did not breach its rules.

Gerhard Schröder Olaf Scholz
Gerhard Schröder takes part in an event at the launch of Olaf Scholz's biography, "The Way to Power" in December 2021. Photo: picture alliance/dpa | Christoph Soeder

The SPD’s Hanover branch said Schröder, whose party membership falls under its umbrella, was “not guilty of a violation of the party rules, as no violation can be proven against him”.

The branch had opened a hearing in July to discuss 17 motions from local and regional chapters against Schroeder’s ongoing membership of the party.

The decision can be appealed, but legal experts say there are high hurdles for expelling members.

Schröder, chancellor from 1998 to 2005, has refused to turn his back on Putin despite Russia’s invasion of Ukraine.

His stance has made him an embarrassment to the SPD, which is also the party of Chancellor Olaf Scholz.

READ ALSO: Germany’s Social Democrats move to dispel Schröder over Putin ties

He has also been widely criticised for holding a number of lucrative posts at Russian energy giants, and it was only after much public pressure that Schröder in May gave up his seat on the board of Russian energy group Rosneft.

He later also announced he would not be joining Gazprom’s supervisory board as initially planned.

Germany’s parliament in May removed some of the perks Schröder was entitled to as an elder statesman, stripping him of an office and staff.

Schröder, 78, who was Angela Merkel’s immediate predecessor, has remained defiant and met with Putin in Moscow in July.

In an interview after the visit, he claimed Russia wanted a “negotiated solution” to the war – comments branded as “disgusting” by Ukrainian
President Volodymyr Zelensky.

Schröder has also called on Berlin to reconsider its position on the Nord Stream 2 gas pipeline, which stands completed but was blocked by the German government in the run-up to the invasion of Ukraine.

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POLITICS

EU ministers urge unity after Germany’s energy ‘bazooka’

EU finance ministers on Monday pleaded for unity after Germany announced a €200 billion plan to help German households and businesses pay for high energy prices, amid accusations that the EU's biggest economy was acting alone.

EU ministers urge unity after Germany's energy 'bazooka'

Europe is struggling with historically high energy prices as it faces an early autumn cold snap and a coming winter almost certainly to be endured without crucial Russian gas supplies because of the war in Ukraine.

Many EU countries have announced national programmes to shield consumers from the high prices. But Germany went the furthest on Friday when it announced its mammoth plan, which will see help pouring to Germans for two years.

Arriving to talk with his eurozone counterparts, German Finance Minister Christian Lindner insisted the spending was “proportionate” to the size of Germany’s economy and said his goal was to use as little of the money as possible.

READ ALSO: Germany to spend €200 billion to cap soaring energy costs

But Germany’s largesse rankled several EU capitals, some of which feared their industries could take severe blows while Germany’s sits protected, deforming the EU’s single market.

Outgoing Italian prime minister Mario Draghi has slammed Berlin for its lack of solidarity and coordination with EU partners.

French Finance Minister Bruno Le Maire, without directly criticizing Berlin, called on partners to agree a common strategy against the price shock and for countries to refrain from going it alone.

“The more this strategy is coordinated, united, the better it is for all of us,” he said.

Risk to ‘European unity’

Others pointed to the unprecedented solidarity shown in the Covid-19 crisis in which the 27 EU nations, against all expectations, approved a jointly financed €750 billion recovery plan.

“Solidarity is not only on the German shoulders, I think this is something that we have to deliver at European level,” said EU economics affairs commissioner Paolo Gentiloni.

“We have very good examples from the previous crisis on how solidarity can react to a crisis and also reassure financial markets. I think that this is our goal,” he said.

While a Covid-style recovery plan is not in the cards for now, Le Maire said €200 billion in loans and €20 billion in aid should be devoted to REPowerEU, a programme to help countries break their dependence on Russian gas.

READ ALSO: Will Germany set a gas price cap – and how would it work?

Bruegel, a highly influential think tank in Brussels, called the German plan a spending “bazooka” that many EU countries were unable to match, creating a potential source of animosity.

“If the German gas price brake gives German business a much better chance to survive the crisis than, say, Italian business, economic divergences in the EU could be deepened, and European unity on Russia undermined,” it said in a blog.

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