Scholz Takes Reins from Merkel for New German Era

German Finance Minister Olaf Scholz addresses the media during a news conference in Berlin, Germany, May 14, 2020. (AP Photo)
German Finance Minister Olaf Scholz addresses the media during a news conference in Berlin, Germany, May 14, 2020. (AP Photo)
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Scholz Takes Reins from Merkel for New German Era

German Finance Minister Olaf Scholz addresses the media during a news conference in Berlin, Germany, May 14, 2020. (AP Photo)
German Finance Minister Olaf Scholz addresses the media during a news conference in Berlin, Germany, May 14, 2020. (AP Photo)

Olaf Scholz will become chancellor of Germany on Wednesday, turning the page on 16 years with Angela Merkel at the helm as a new centre-left-led coalition takes the wheel of Europe's top economy.

Scholz, who will be formally elected by the Bundestag lower house of parliament and then sworn in by President Frank-Walter Steinmeier, has pledged broad "continuity" with the popular Merkel while making Germany greener and fairer.

The finance minister under Merkel led his Social Democrats to victory in the September 26 election -- an outcome considered unthinkable at the start of the year given the party's then festering divisions and anaemic support.

Scholz, 63, who turned emulating Merkel in style and substance into a winning strategy, has now cobbled together Germany's first national "traffic light" coalition with the ecologist Greens and the liberal Free Democrats, nicknamed after the parties' colors.

Their four-year pact sealed late last month is called "Dare for More Progress", a hat tip to Social Democratic chancellor Willy Brandt's 1969 historic pledge to "Dare for More Democracy".

"We have a chance for a new beginning for Germany," Scholz told his party at the weekend as it gave its blessing to the coalition agreement with 99-percent support.

The alliance aims to slash carbon emissions, overhaul decrepit digital infrastructure, modernize citizenship laws, lift the minimum wage and have Germany join a handful of countries worldwide in localizing marijuana.

- Gender balanced -
The incoming foreign minister, Annalena Baerbock, has also pledged a tougher line with authoritarian states such as Russia and China after the business-driven pragmatism of the Merkel years.

Greens co-leader Baerbock is one of eight women in Germany's first gender-balanced cabinet.

"That corresponds to the society we live in -- half of the power belongs to women," Scholz, who describes himself as a "feminist", said this week.

Scholz and his team promise stability just as France braces for a bitterly fought presidential election next year and Europe grapples with the enduring aftershocks of Brexit.

However a vicious fourth Covid wave has already put the incoming coalition to the test.

"We have to make a fresh start while facing down the corona pandemic -- those are the circumstances the new government is up against," Scholz told reporters Tuesday, flanked by his designated finance and economy ministers, Christian Lindner and Robert Habeck.

More than 103,000 people have died with coronavirus in Germany while new infections have surged since the weather turned cold, filling intensive care units to the breaking point.

Scholz has thrown his weight behind Germany following Austria in making jabs mandatory to get the pandemic under control, as experts say the worst is still to come for the country's struggling clinics.

He aims to have parliament vote on the issue before the year is out with a view to implementing the law in February or March.

- Merkel 'variant' -
Merkel, 67, Germany's first woman chancellor, is retiring from politics after four consecutive terms, the first post-war leader to step aside of her own accord.

She leaves big shoes to fill, with large majorities of Germans approving of her leadership, even if her own party, the conservative Christian Democrats, often bridled against her moderate course.

"For 16 years, Angela Merkel defined the political center," columnist Nikolas Blome said.

"If she were running again, she would win a fifth term," he added, saying it was nevertheless time for new blood.

Despite being from a rival party, Scholz tapped into that well of popular support in his bid to succeed her.

The left-leaning daily Tageszeitung recently joked about the similarities between the two politicians on its front page, with the pandemic-era headline "Merkel Variant Prevails" and a picture of a grinning Scholz.

Her successor has however pledged to tackle the widening gap between rich and poor under Merkel.

The independent Centre for European Economic Research (ZEW) said in an analysis of the coalition pact that lower-income Germans and parents stood to gain the most from its policy roadmap.

Meanwhile Greens supporters are banking on billions flowing toward climate protection and renewable energy, even as the government pledges to return to a no-new-debt rule by 2023.



Congress Approves Trump's $9 billion Cut to Public Broadcasting, Foreign Aid

Speaker of the House Mike Johnson, R-La., leaves the chamber at the Capitol in Washington, Thursday, July 17, 2025. (AP Photo/J. Scott Applewhite)
Speaker of the House Mike Johnson, R-La., leaves the chamber at the Capitol in Washington, Thursday, July 17, 2025. (AP Photo/J. Scott Applewhite)
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Congress Approves Trump's $9 billion Cut to Public Broadcasting, Foreign Aid

Speaker of the House Mike Johnson, R-La., leaves the chamber at the Capitol in Washington, Thursday, July 17, 2025. (AP Photo/J. Scott Applewhite)
Speaker of the House Mike Johnson, R-La., leaves the chamber at the Capitol in Washington, Thursday, July 17, 2025. (AP Photo/J. Scott Applewhite)

The House gave final approval to President Donald Trump's request to claw back about $9 billion for public broadcasting and foreign aid early Friday as Republicans intensified their efforts to target institutions and programs they view as bloated or out of step with their agenda.

The vote marked the first time in decades that a president has successfully submitted such a rescissions request to Congress, and the White House suggested it won't be the last. Some Republicans were uncomfortable with the cuts, yet supported them anyway, wary of crossing Trump or upsetting his agenda.

The House passed the bill by a vote of 216-213. It now goes to Trump for his signature, The AP news reported.

“We need to get back to fiscal sanity and this is an important step,” said House Speaker Mike Johnson, R-La.

Opponents voiced concerns not only about the programs targeted, but about Congress ceding its spending powers to the executive branch as investments approved on a bipartisan basis were being subsequently canceled on party-line votes. They said previous rescission efforts had at least some bipartisan buy-in and described the Republican package as unprecedented.

No Democrats supported the measure when it passed the Senate, 51-48, in the early morning hours Thursday. Final passage in the House was delayed for several hours as Republicans wrestled with their response to Democrats' push for a vote on the release of Jeffrey Epstein files.

The package cancels about $1.1 billion for the Corporation for Public Broadcasting and nearly $8 billion for a variety of foreign aid programs, many designed to help countries where drought, disease and political unrest endure.

The effort to claw back a sliver of federal spending came just weeks after Republicans also muscled through Trump’s tax and spending cut bill without any Democratic support. The Congressional Budget Office has projected that measure will increase the U.S. debt by about $3.3 trillion over the coming decade.

"No one is buying the the notion that Republicans are actually trying to improve wasteful spending,” said Democratic leader Hakeem Jeffries.

A heavy blow to the Corporation for Public Broadcasting The cancellation of $1.1 billion for the CPB represents the full amount it is due to receive during the next two budget years.

The White House says the public media system is politically biased and an unnecessary expense.

The corporation distributes more than two-thirds of the money to more than 1,500 locally operated public television and radio stations, with much of the remainder assigned to National Public Radio and the Public Broadcasting Service to support national programming.

Democrats were unsuccessful in restoring the funding in the Senate.

Lawmakers with large rural constituencies voiced particular concern about what the cuts to public broadcasting could mean for some local public stations in their state.

Sen. Lisa Murkowski, R-Alaska, said the stations are "not just your news — it is your tsunami alert, it is your landslide alert, it is your volcano alert.”

As the Senate debated the bill Tuesday, a 7.3 magnitude earthquake struck off the remote Alaska Peninsula, triggering tsunami warnings on local public broadcasting stations that advised people to get to higher ground.

Sen. Mike Rounds, R-S.D., said he secured a deal from the White House that some money administered by the Interior Department would be repurposed to subsidize Native American public radio stations in about a dozen states.

But Kate Riley, president and CEO of America’s Public Television Stations, a network of locally owned and operated stations, said that deal was “at best a short-term, half-measure that will still result in cuts and reduced service at the stations it purports to save.”

Inside the cuts to foreign aid Among the foreign aid cuts are $800 million for a program that provides emergency shelter, water and family reunification for refugees and $496 million to provide food, water and health care for countries hit by natural disasters and conflicts. There also is a $4.15 billion cut for programs that aim to boost economies and democratic institutions in developing nations.

Democrats argued that the Republican administration's animus toward foreign aid programs would hurt America's standing in the world and create a vacuum for China to fill.

“This is not an America first bill. It's a China first bill because of the void that's being created all across the world,” Jeffries said.

The White House argued that many of the cuts would incentivize other nations to step up and do more to respond to humanitarian crises and that the rescissions best served the American taxpayer.

“The money that we're clawing back in this rescissions package is the people's money. We ought not to forget that,” said Rep. Virginia Foxx, R-N.C., chair of the House Rules Committee.

After objections from several Republicans, Senate GOP leaders took out a $400 million cut to PEPFAR, a politically popular program to combat HIV/AIDS that is credited with saving millions of lives since its creation under Republican President George W. Bush.

Looking ahead to future spending fights Democrats say the bill upends a legislative process that typically requires lawmakers from both parties to work together to fund the nation’s priorities.

Triggered by the official rescissions request from the White House, the legislation only needed a simple majority vote to advance in the Senate instead of the 60 votes usually required to break a filibuster. That meant Republicans could use their 53-47 majority to pass it along party lines.

Two Republican senators, Murkowski and Sen. Susan Collins of Maine, joined with Democrats in voting against the bill, though a few other Republicans also raised concerns about the process.

“Let’s not make a habit of this,” said Senate Armed Services Committee Chairman Roger Wicker of Mississippi, who voted for the bill but said he was wary that the White House wasn’t providing enough information on what exactly will be cut.

Russ Vought, the director of the Office of Management and Budget, said the imminent successful passage of the rescissions shows “enthusiasm” for getting the nation’s fiscal situation under control.

“We’re happy to go to great lengths to get this thing done,” he said during a breakfast with reporters hosted by the Christian Science Monitor.

In response to questions about the relatively small size of the cuts -- $9 billion -- Vought said that was because “I knew it would be hard” to pass in Congress. Vought said another rescissions package is ’likely to come soon.”