Frustration grows inside EU as German infighting hurts block's goals

Germany's internal bickering disrupts EU policy goals, reflecting deeper economic struggles post-Ukraine war, causing concern in Brussels.

Once considered a vital engine of the European Union, Germany is causing growing consternation in capitals across the bloc as disagreements in its ruling coalition spill over to thwart key EU policy goals.

The internal German bickering and its European echoes are seen in Brussels as a symptom of something deeper: Germany’s unresolved quest for a new economic model after the Ukraine war put an end to the cheap Russian gas and largely unfettered trade channels that fuelled its export-oriented industry for decades.

“Much more than others in a phase of existential angst,” one EU diplomat characterized Germany’s condition. “They fear that the software itself is broken — and on top of that, you get the different logic from coalition members.”

When Social Democrat Olaf Scholz struck a coalition deal with the environmental Greens and economic liberals of the Free Democrats (FDP) in late 2021 it was clear the pact had a rocky way ahead, but few predicted their differences would emerge at the EU level.

Since then, only the Greens have managed to roughly keep their popularity. Mr. Scholz’s Social Democrats are down to 14-15% from almost 26% in the election and support for the smallest, the FDP, has more than halved to 3-5% - meaning it would not even get into Parliament if elections were held now.

“There is a causality there — precisely because the FDP are being snowed under domestically, they are looking for a way to raise their profile in carefully-selected EU files to rally their electorate,” a second EU diplomat said.

German officials point to the constructive role Berlin has played in recent EU decisions to secure Ukraine aid or reform rules on budget deficits.