Germany undeterred by global turmoil — Scholz

In his New Year's message, German Chancellor Olaf Scholz acknowledged the tough global landscape but expressed confidence that "Germany will get through it."

"So much suffering; so much bloodshed. Our world has become a more unsettled and harsher place. It's changing at an almost breathtaking speed," Scholz said, according to the text of his speech released by his office ahead of the broadcast on New Year's Eve.

"The result is that we, too, are having to change. This is a worrying thing for many of us. In some, it is also causing discontent. I do take that to heart."

The German leader, however, struck an optimistic note and highlighted the obstacles the country successfully overcame in 2023, both domestically and internationally.

"Our strength resides in our readiness to compromise – in the efforts we put in for one another," Scholz asserted. 

US election could have 'far-reaching consequences'

With many key general elections to be held worldwide in 2024, most notably in the United States, United Kingdom, India and the European Parliament, Scholz reiterated the importance of these elections — particularly in the US — with wars still raging in Ukraine and the Middle East.

The chancellor emphasized that Germany's strength resides in the European Union.

"It's so important for Europe to emerge unified and strengthened from the European elections in the coming year," he said.

"After all, Russia's war in the east of our continent is not over. Nor is the armed conflict in the Middle East. The year ahead will also bring presidential elections in the United States, which may have far-reaching consequences — including for us here in Europe."

'We held back economic downturn'

With inflation having sunk from an average of 7.9% in 2022 to 3.2% in November 2023, the lowest level in two years, Scholz spoke of a much brighter economic outlook than a year ago — even if Germany's rate of inflation is still some way higher than the Eurozone average of 2.4%.

He also referenced Germany's replenished gas supplies, which he described as "filled to the brim" and said the country avoided an economic downturn.

"Do you remember where we stood one year ago?" Scholz asked. "Numerous experts had forecast an economic downturn of three, four, five percent. Many feared that prices would keep on rising. There were concerns about power cuts and cold homes.

"Things have turned out differently," he concluded. "Inflation has gone down. Wages and pensions are going up. Our gas storage facilities are filled to the brim for the winter."

"We held back that economic downturn,” Scholz added. "We saved energy, and we made timely preparations. We all did - together."

Looking forward to 2024

Scholz, who is the leader of Germany's Social Democrats (SPD), also said the coalition government will prioritize upgrading road and rail infrastructure in what he described as a need to "invest powerfully in the future."

The SPD governs alongside the Greens and the neoliberal Free Democrats (FDP).

"As anyone will have noticed who travels by train these days, or sits in a traffic jam on the approach to a crumbling bridge, our country has been driven into the ground for too long," he said. "That's why we're investing now — in decent roads and a better railway."

But he acknowledged the Constitutional Court decision in November that unused pandemic funds could not be repurposed for climate and green industry projects meant, "we will not be able to implement all the plans we had envisaged."

Scholz believed that every person in Germany plays a vital role, and with mutual respect, "we need to have no fear about the future."

"Then the year 2024 will be a good year for our country  even if some things do turn out differently from the way we imagine them today, on the eve of that New Year."

Edited by: Louis Oelofse

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