India-Germany : In past 16 years – UPSC GS2

Context: Olaf Scholz has been sworn in as chancellor of Germany, ending the 16-year tenure of Angela Merkel.
What are the policies adopted during Angela Merkel’s term in Germany?
  • Germany emerged from the bruises of reunification.
  • Admitted Syrian refugees to the country.
  • Demonstrate strong and sustained growth in the economy when other countries are struggling with their economic models (Except China).
  • Not declared China as a systemic rival, like France, as their middle-sized enterprises rely on supply chains that are centred in China.
  • Phased-out nuclear power in Germany, which results in various challenges.
What are the consequences faced by Germany in phasing-out Nuclear power?
  • Depend more on renewables and natural gas.
  • Germany became the largest emitter of Carbon in Europe.
  • The country has the highest electricity prices in Europe.
  • Facing challenges in achieving green transition.
  • Impacted Germany’s foreign policy: German economy needs Russian natural gas. So, they are not condemning Russian actions against Ukraine.
Why does India need to pay attention to the New Chancellor’s actions in Germany?
  • Germany is India’s largest trade partner within Europe and a significant contributor to manufacturing FDI within India.
  • So the new chancellor’s actions in trade, green finance, and supply chains will impact investment and growth in India.

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