Germany becoming a roadblock for more EU business

BLOOMBERG

The unpredictable behavior of Germany’s ruling coalition is becoming a disruptive influence in Europe and raising hackles across the continent.
A last-ditch move this month to block a European Union push to phase out combustion-engine vehicles was only the latest example. On issues ranging from financial aid for Ukraine to reform of state-aid and budget rules, Germany’s EU partners and officials in Brussels have become increasingly frustrated with Chancellor Olaf Scholz’s center—left alliance of his Social Democrats, the Greens and the business-friendly Free Democrats.
The unwieldy nature of the three-party coalition is part of the problem, according to people familiar with EU decision-making processes. Members of Scholz’s government are sometimes slow to agree among themselves on the most basic elements of proposed legislation and when they do it can be either too vague or too late, said the people, who asked not to be identified discussing confidential negotiations.
At a time when the EU is anxious to show a united front on the war in Ukraine and struggling to adapt to the upheaval triggered by Russia’s invasion, Germany’s conduct is seen as especially unhelpful. It also stands in contrast to public comments by Scholz and his ministers, who portray Germany as a pillar of EU unity and integration.
“Germany is giving mixed messages about its own interests as well as the larger European interests,” said Sudha David-Wilp, regional director of the Berlin office of the German Marshall Fund. She highlighted “cracks within the coalition” appearing after a year and three months in office.
“Germany has often said that it does good things for Europe, is embedded in the EU, but often decisions are more about German interests which really don’t help European interests,” David-Wilp added. Asked about Germany’s working relationship with Europe and the perception that it’s hindering EU business in some cases, a spokesman for Scholz said that the government “in general does not comment on such assessments and statements.”
Economy Minister Robert Habeck, a member of the Greens who is also the vice chancellor, pushed back against the idea that the ruling coalition is dysfunctional and may be testing the limits of its usefulness. He said a two-day cabinet retreat north of Berlin that ended Monday could help give the government some fresh impetus.