16 Years in Power: Angela Merkel's Impact on Germany

 by Dulcie Langley

Image by: Raimond Spekking

On 26th September 2021, German voters took to the polls to decide the members of the 20th Bundestag. This marks the end of Angela Merkel’s 16 year run as chancellor, a period which saw four French presidents, four US presidents, eight Italian premiers and five British prime ministers. Known to us as the ‘de facto leader’ of the European Union and known to Germans as ‘Mutti’ (Mum), Merkel has led her country through many international crises with distinctive pragmatism and empathy. But what impact has Germany’s first female chancellor really had on her country?

The economy 

Under Merkel, Germany has experienced what Carsten Brzeski, head of macro research at ING, deems a ‘second Wirtschaftswunder’, or ‘economic miracle’. Germany is currently almost as rich as it has ever been, despite the effect of a global pandemic. Since 2005, its gross domestic product per capita has increased at double the rate of the UK, Japan, France and Canada. Government accounts currently enjoy relatively low levels of debt, partially due to the 2009 balanced budget law. However, some would argue that these achievements should not be credited to Merkel herself. Christian Odendahl, chief economist at the Centre of European Reform, and Neville Hill, chief European economist at Credit Suisse, claim that the reforms made by her predecessor Gerhard Schröder provided the foundations for success. Yet one should not dismiss Merkel as purely a lucky inheritor. She played a crucial role in protecting the economy during the 2009 financial crisis, such as through a cash-for-clunkers project that boosted car sales. She also chose to direct billions of euros into a government unemployment insurance system called ‘Kurzarbeit’, which later facilitated the creation of many jobs. Today, German unemployment is near a twenty year low.

Athough almost 70% of Germans state that they are happy with their country’s economic situation, areas for concern and criticism remain. A high proportion of people work in low-earning jobs, with little improvement over the last couple of decades. Amidst the healthy growth and rise in employment, little modernisation has taken place. Many experts also suggest that low rates of public investment will leave Germany ill-equipped for the future.

Asylum policy

Merkel faced some of her greatest backlash as chancellor during her handling of the refugee crisis in 2015. She decided to open Germany’s borders to hundreds of thousands of migrants during August and September of that year, temporarily suspending an EU rule that required asylum seekers to register in the first member state that they entered. The chancellor evoked her Christian faith and her experience growing up within the inescapable borders of the former GDR to establish her reasons for this. As a result of her response to the crisis,  Merkel was labelled ‘Person of the Year’ by Time magazine and often referred to as ‘Chancellor of the free world’. Indeed, many people started to see a more human side of Merkel and therefore respected her on a deeper level. Her assertion that ‘wir schaffen das’, meaning ‘we will manage this’, inspired many to show support. However, others were enraged. Right-wing populism significantly increased as the number of migrants grew, with the far-right party Alternative for Germany becoming more of a threat. The 2017 Bundestag election brought the country’s first far-right MPs into power since the1960s, with the AfD claiming 12.6% of the vote.

The Climate

While Germany has decreased emissions and invested in renewable energy during Merkel’s time in office, many suggest that more could have been done in the 16 years to secure a more sustainable future. Germany’s per capita greenhouse gas emissions are currently above EU averages, it has a low proportion of energy from renewable sources and its CO2 emissions from new passenger cars are high. Following the 2011 Fukushima nuclear reactor incident in Japan, the nation began spending more heavily on renewable energy. However, its target to eliminate the use of coal power by 2035 trails behind other countries in the EU. 

Equality and Social Justice

The fact that Merkel was Germany’s first female chancellor is a powerful indicator of progress in itself. However, her critics argue that her role in the feminist movement was more symbolic than it was active. Merkel has been recognised for supporting women attempting to enter major positions in business and politics, including Ursula von der Leyen, the first female German defence minister and European Commission president, and Annegret Kramp-Karrenbauer, the defence minister who was previously in the running to become the chancellor’s successor. While it is acknowledged that Merkel did select many women to be her closest advisors, some still say that she failed to take decisive action to establish wider gender equality. For example, Germany’s gender pay gap remains one of the largest in Europe. 

Merkel’s chancellorship saw the LGBTQ+ community reach some important milestones, but was not overwhelmingly successful for their movement. The Bundestag voted to legalise same-sex marriage by 393 votes to 226 in 2017, although Merkel personally voted against the measure. Adoption by gay parents was also legalised in 2017, but only a partial ban was passed on conversion therapy. Germany’s so-called ‘Transsexual Law’, which sets out the requirements for people to change their legal gender, has been in place for 40 years. Trans rights activists deem the law ‘archaic’ and ‘degrading’, and hope that the election of a new chancellor will bring change. 

Following George Floyd’s murder and the global Black Lives Matter protests that it prompted, Merkel stated that Germans should not dismiss racism as a US only problem. She told her country, ‘We should first sweep in front of our own door’. However, it seems she is leaving that job for the next chancellor. Studies have revealed that racial discrimination in Germany rose during the Merkel era. The Federal Anti-Discrimination Agency’s annual report for 2020 recorded a 78% increase in the number of cases documented. Acting head of this organisation, Bernhard Franke, has declared that Germany has an ‘ongoing problem with racial discrimination and does not give enough consistent legal support to victims’. The nation’s reputation has suffered from coverage of xenophobic riots and right-wing extremist attacks, which are carried out by groups such as the National Socialist Underground (NSU). At present, there is particular concern for the safety of Muslim women, given the hostility fuelled by the AfD that they face.

As she concludes her 16 years in power, Merkel’s legacy remains subject to debate. Indeed, many would describe her as dependable rather than dazzling. But as she exits the global stage, it is widely agreed that her facts-based, practical approach provided a much-needed calmness in an increasingly volatile political environment.