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The future of the Wagenknecht party in Germany

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Sahra Wagenknecht, a prominent figure within the Left Party (Die Linke) and German politics, along with her associates, recently made a much-anticipated announcement by introducing the ‘Sahra Wagenknecht Alliance – For Reason and Justice’ (BSW).

The BSW, presently functioning as an association under the leadership of Amira Mohamed Ali, is expected to transition into a political party by January and participate in the upcoming European Parliament (EP) elections in June.

During a press conference held yesterday, Sahra Wagenknecht expressed her mission to provide a platform for those disenchanted with traditional political parties and feeling marginalized due to the harsh nationalism propagated by the AfD.

Wagenknecht emphasized that the AfD, while being viewed by some as a choice of protest and desperation, does not necessarily represent the right-wing ideology as a whole.

As one of Germany’s most recognizable personalities, Wagenknecht holds a substantial following among voters disillusioned with mainstream politics. According to a recent Insa poll, 27 percent of Germans indicated their willingness to vote for a party led by her. In a subsequent poll by the same organization, 12 percent of Germans expressed their support for Wagenknecht’s party.

Unity from ‘right’ to ‘left’

In a Financial Times (FT) assessment, the BSW was characterized as blending ‘traditional left-wing’ principles such as a wealth tax, substantial public investments in education, and opposition to NATO with elements of a ‘right-wing movement that rejects irregular migration’ – an issue currently at the forefront of German politics as refugee numbers rise.

Wagenknecht, in her press conference, highlighted the challenges facing Germany, including a shortage of 700,000 homes, a scarcity of teachers and kindergarten spaces, and asserted that mass immigration in such a situation is irresponsible.

Wagenknecht’s policy stances extend to opposing military aid to Ukraine and economic sanctions against Russia. Furthermore, she has consistently held a contrarian position during the COVID-19 pandemic, questioning the efficacy of vaccination, lockdowns, and mask mandates.

Wagenknecht and the stance against ‘lifestyle leftism’

In his book Die Selbsgerechten, which was published in 2021 and caused a great deal of controversy as soon as it was published, Wagenknecht argued that in order for the left to remain on the agenda, it had to change its position on immigration. Criticising Die Linke’s programme calling for ‘open borders’, Wagenknecht wrote that this was the reason why his party had lost support in the East, where it had once been the Volkspartei, a mass party.

In his book, Wagenknecht opposed what he called ‘identity politics’ and the ‘liberal left’, criticised those who belonged to this movement as ‘lifestyle leftists’ and proposed a ‘counter-programme for public spirit and social cohesion’.

“Identity politics means focusing on ever smaller and more bizarre minorities, each of which finds an identity in a strangeness that separates it from the majority of society and from which it derives its claim to victimhood,” the German politician wrote, adding that concepts such as “faith, nation and homeland” were considered “backward” by the left-liberal Left.

Wagenknecht’s criticism of his own party, Die Linke, was also in line with the theses in his book. Wagenknecht has repeatedly clashed with its leaders over what he claims is the party’s focus too much on ‘minority politics’ instead of ‘economic justice’.

Resistance to Brussels dominance

Wagenknecht, responding to a question from Euractiv, expressed her party’s plan to challenge the consolidation of power in Brussels during the 2024 EP elections. She advocates for a more decentralized decision-making process within the member states and criticizes the European Commission’s perceived closeness to corporate lobbyists.

“We don’t think more powers should be given to the European Commission. The European Commission is close to corporate lobbyists and far from citizens,” the German politician said, adding that he wants more decisions to be taken in the member states.

An ‘independent’ Europe amidst US-China tensions

Wagenknecht contends that Europe finds itself in a precarious position, potentially caught between the US and China if it doesn’t adopt a neutral foreign policy. As a result, she strongly opposes sanctions against Russia and calls for an immediate ceasefire in Ukraine. Wagenknecht also promises to work towards more affordable energy for Germany.

In this context, Wagenknecht pledges to protect small and medium-sized enterprises (SMEs) from the dominance of large corporations.

Critiques of Wagenknecht

Sahra Wagenknecht, representing the Left Party that evolved from the Party for Democratic Socialism (PDS), the successor to the former ruling party of East Germany, the Socialist Unity Party (SED), advocates for the interests of the working class.

However, Wagenknecht, who is said to be ‘a millionaire living in a villa’, has a PhD in economics and is criticised for spending most of her time in the Bundestag and on talk shows.

In the early 2000s, when the PDS had not yet become the Left Party, Wagenknecht was part of the party’s ‘communist platform’. Some argue that Wagenknecht was influenced by the anti-immigration views of Oskar Lafontaine, a former SPD member and one of the founders of the Left Party.

Wagenknecht’s evolution

In his 2012 book Freiheit statt Kapitalismus (Freedom instead of Capitalism), Wagenknecht, too, seems to have moved from a defence of socialist Germany to the ‘social market economy’ and ‘ordoliberalism’ that became popular in the 1960s. In this view, the state acquires explicitly interventionist capabilities to help free markets. This system, led by the CDU’s Konrad Adenauer and the CDU economist Ludwig Erhard, is often cited as the idea behind the ‘German miracle’ of the 50s and 60s.

It is understood that Wagenknecht wants to pursue an SPD-CDU hybrid course linked to the ‘Golden Age’ of capitalism. As a matter of fact, the trajectory of Wagenknecht’s books points to a transformation from a left-wing politician addressing the workers to a ‘populist’ in the very sense of the book, which describes the damage that the current form of capitalism does to ‘entrepreneurs’, ‘competition’ and ‘efficiency’.

At this point, it is not difficult to determine that the main audience of the Wagenknecht party will be the Mittelstand and SMEs, which are seen as the backbone of the German economy, rather than the workers.

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AfD’s Höcke sentenced for using ‘Nazi symbols’

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A German district court in Halle on Tuesday fined Björn Höcke, a leading figure in the Alternative for Germany (AfD), 13,000 euros for using “Nazi symbols”.

Höcke, the leader of the AfD in the eastern German state of Thuringia, publicly used the phrase “Alles für Deutschland” (“All for Germany”), a slogan of the SA, the paramilitary wing of Adolf Hitler’s Nazi party, on three occasions.

The phrase itself and other specific symbols, such as the Nazi salute, are grounds for prosecution in Germany. “You are an articulate, intelligent man who knows what he is talking about,” Judge Jan Stengel told Höcke as he announced the sentence.

The 13,000 euro fine is not yet final, as it can be appealed within a week.

“Everything for our homeland, everything for Saxony-Anhalt, everything for Germany,” Höcke, who is seen as the unofficial leader of the party’s ethno-nationalist (völkisch) wing, said in Merseburg in May 2021, using the banned phrase.

Höcke is expected to be the AfD’s first candidate in the Thuringian state elections in September.

While the court only fined the politician for this incident, Höcke is accused of using the phrase several times. These were presented as evidence in court to explain his deliberate use of the phrase, which was the main topic of discussion during the trial.

The judge stated that the defendant had “seriously questioned” the cloak of freedom of expression.

The prosecution requested a suspended sentence for the Thuringian politician, meaning that he will have to serve a probationary period during which he must obey the law, otherwise the basic prison sentence will apply.

“Höcke has revived an often forgotten slogan and made it socially acceptable,” the prosecutor said.

Höcke defended himself by saying that he did not know that “All for Germany” was a slogan used by the SA.

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European Investment Bank to lend to defence projects

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The EU’s lending arm, the European Investment Bank (EIB), announced on Wednesday (8 May) that it was changing its long-standing policy of not investing in military products by lifting restrictions on dual-use investments.

In a statement, the EIB’s board of directors said it had approved “the updated definition of dual-use goods and infrastructure eligible for financing by the EIB Group”, removing the minimum threshold of expected revenues from civilian applications or the share of civilian users in a defence-related investment.

Previously, the dual-use lending criteria limited the Bank’s investment in defence-related projects to civilian applications that denied their military use.

EU finance ministers, who act as the EIB’s directors, agreed to “facilitate financing” by paving the way for “private intermediary financing” for small and medium-sized enterprises (SMEs) active in security and defence.

They also added projects and infrastructure used by the military or police that also serve civilian needs to the bank’s list of “appropriate targeted investments”.

The move will expand the bank’s ability to invest in products and technologies used only by the armed forces, including cybersecurity, radar, satellite technology, infrastructure and equipment, as long as they “do not pose a lethal risk”.

“The changes are expected to accelerate investment and improve access to EIB Group financing for the European security and defence sector,” the EIB said in a statement.

The EIB had already committed EUR 6 billion under the Strategic European Security Initiative (SESI) and the European Investment Fund’s (EIF) Defence Capital Facility.

While the European defence industry and defence ministries have long been asking the EIB to increase its contribution to the EU’s growing defence effort, this request was only put on the table of finance ministers in February, and EIB President Nadia Calviño launched a two-month consultation process with the European Commission.

According to several sources with knowledge of the negotiations, one of the key conditions for the EIB to move beyond its traditional lending mandate is its ability to maintain its environmental, social and governance (ESG) ratings as well as its top credit rating.

In particular, the triple-A core credit rating allows the lender to obtain very favourable borrowing conditions on the market. As Euractiv has previously reported, this is a key priority for the bank’s shareholders (i.e. the bloc’s 27 member states), which neither the bank nor national governments want to jeopardise.

Last week, US credit rating giant Moody’s became the first rating agency to confirm that not only the EIB’s ESG score but also its overall credit rating would be put under review if significant changes were made to the dual-use policy.

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Denmark and Sweden agree on joint Baltic defence cooperation

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The Danish and Swedish Defence Ministers, Troels Lund Poulsen and Pål Jonson, signed a Memorandum of Understanding on Tuesday in which the two countries agreed to strengthen their defence cooperation, including joint procurement of military equipment and cooperation in the Baltic Sea region.

The closer defence cooperation was agreed in a memorandum of understanding during an official visit to Stockholm on Tuesday.

The document states that the cooperation agreement ‘will remain within the framework of NATO, the EU and the Nordic Defence Cooperation, NORDEFCO, and will be supported by regular bilateral consultations’.

Under the agreement, Copenhagen and Stockholm will ‘explore’ the joint procurement of military vehicles used by both armies, such as CV90 infantry fighting vehicles.

Specifically, Denmark and Sweden will coordinate the purchase of equipment whenever possible,’ the Danish Ministry of Defence said in a press release. This cooperation could possibly include the purchase of CV90 infantry fighting vehicles (IKK), which are used by both Sweden and Denmark,’ the Danish Ministry of Defence said in a press release.

Sweden and Denmark have agreed to donate CV90 vehicles to Ukraine in 2023, while both armies need to replenish their own stocks.

Both Sweden and Denmark have donated Stridsfordon 90 (CV 90) vehicles to Ukraine, and we share the view that continued support for Ukraine is vital,” the Swedish defence minister said.

According to the Danish Defence Minister, this cooperation became even more natural when Sweden joined NATO and both countries pledged to work together for the security of the Baltic region.

For example, Sweden and Denmark will expand air policing cooperation in the Baltic Sea region, based on agreements on access to each other’s airspace and bases for the benefit of NATO allies, including the security of the Danish island of Bornholm and the strategic Swedish island of Gotland.

In addition, as Sweden is currently considering sending a battalion to Latvia, the document proposes that both countries contribute a battalion or battle group to the Canadian-led presence in Ādaži, Latvia, on a rotational basis after the Swedish parliament votes on the issue.

“In this way, Denmark and Sweden will be able to work together on a rotational basis, starting from Denmark’s Camp Valdemar in Ādaži,” the Danish Ministry of Defence said in a press release.

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