German Chancellor Olaf Scholz arrives to visit Humboldt Gymnasium in Eichwalde during his last day in office, Germany, 05 May 2025. EPA-EFE/FILIP SINGER
Olaf Scholz’s tenure as chancellor of Germany has come to a close. His time in office will be remembered as a period marked by crisis management, cautious leadership and a struggle to assert a clear political identity amid global upheaval.
Taking office in December 2021, Scholz, a Social Democratic Party (SPD) MP, led the first so-called left-wing “traffic light” coalition at the federal level, uniting the SPD, the Greens and the Free Democratic Party (FDP).
His coalition’s ideological divides — between the left-leaning SPD and Greens, who favoured increased spending and the fiscally Conservative FDP — created persistent instability, undermining his ability to project decisive leadership.
BERLIN, GERMANY – SEPTEMBER 26: Olaf Scholz, chancellor candidate of the German Social Democrats (SPD), waves to supporters next to his wife Britta Ernst (4thL) and party members in reaction to initial results at SPD headquarters in federal parliamentary elections on September 26, 2021 in Berlin, Germany. Voters have gone to the polls nationwide today in elections that herald the end of the 16-year chancellorship of Angela Merkel. (Photo by Maja Hitij/Getty Images)BERLIN, GERMANY – OCTOBER 21: German Social Democratic Party (SPD) Chancellor candidate Olaf Scholz arrives for the first day of real coalition talks on October 21, 2021 in Berlin, Germany. The Greens, the German Social Democrats (SPD) and the Free Democrats (FDP), after holding exploratory talks over recent weeks, are now holding negotiations to create Germany’s next coalition government following federal parliamentary elections last September. (Photo by Omer Messinger/Getty Images)BERLIN, GERMANY – NOVEMBER 12: Olaf Scholz, German Social Democrat (SPD) and likely the next chancellor of Germany, speaks with climate activists Lena Bonasera (C) und Henning Leschke (L) at the Friedrich Ebert Foundation on November 12, 2021 in Berlin, Germany. Bonasera and Leschke both went on a hunger strike in the last weeks before September’s federal parliamentary elections in order to demand bolder government action on global warming. Scholz had promised to meet with them at some point after the election. (Photo by Maja Hitij/Getty Images)As Chancellor, Scholz records his first new year’s address to the nation at the Chancellery on December 30, 2021. (Jesco Denzel/Bundesregierung via Getty Images)
Global events quickly shifted the government’s focus.
Barely two months into his chancellorship, Russia invaded Ukraine, forcing a dramatic shift in Germany’s foreign and defence policy.
Scholz coined the term “Zeitenwende” (historic turning point) to describe Germany’s response: A €100 billion defence fund, increased military spending and a decisive move away from Russian energy dependence.
While his government did eventually deliver weapons to Ukraine and reduce reliance on Russian gas, Scholz was often criticised for being slow and overly cautious in his decision-making.
BRUSSELS, BELGIUM – FEBRUARY 24: German Chancellor Olaf Scholz is talking to media as he arrives in the Europa, the EU Council headquarter for an EU Summit on the situation of the war in Ukraine on February 24, 2022 in Brussels, Belgium. The European Council demands that Russia immediately ceases its military actions, unconditionally withdraws all forces and military equipment from the entire territory of Ukraine and fully respects Ukraines territorial integrity, sovereignty and independence within its internationally recognised borders. (Photo by Thierry Monasse/Getty Images)Scholz met with French President Emmanuel Macron over Ukraine crisis at the Elysee Palace on February 28, 2022. (Thierry Chesnot/Getty Images).
Scholz’s response to the Ukraine war drew sharp criticism. His initial Zeitenwende speech promised a bold shift in German defence policy. His refusal to supply Taurus missiles to Kyiv, though, was seen as a retreat from these commitments.
Germany did provide significant aid including Leopard tanks but Scholz’s cautious approach, driven by fears of escalating NATO-Russia tensions, was seen as dithering.
This frustrated allies and fuelled domestic discontent; observers said his indecision weakened Germany’s international standing.
Activists wearing masks resembling Scholz (C), finance minister Christian Lindner (L) and economy and climate minister Robert Habeck during a protest against energy deals with Russia called ‘Oil embargo?’ taking place in front of Brandenburg Gate. (EPA-EFE/FILIP SINGER)Scholz (L) talks to Former world boxing heavyweight champion Wladimir Klitschko after award ceremony at the international media conference M100 Sanssouci Colloquium in Potsdam, Germany, in September 2022. (EPA-EFE/FILIP SINGER)Scholz (R) welcomes Ukrainian President Volodymyr Zelensky (L) upon his arrival at the Chancellery in Berlin, Germany, in October 2024. (EPA-EFE/FILIP SINGER)A protester on January 6, 2024 holds a banner, indirectly demanding the delivery of German Taurus long-range cruise missiles to Ukraine, which Scholz denied. (Omer Messinger/Getty Images)Activists from the German-Ukrainian group Vitsche protest outside the Chancellery to demand increased military support from Germany to Ukraine on January 6, 2024. (Omer Messinger/Getty Images)
Scholz’s China policy further exposed his perceived weakness. He advocated “de-risking” over “decoupling”, aiming to reduce Germany’s economic dependence on China while maintaining trade ties.
His controversial 2022 Hamburg port deal, allowing Chinese firm COSCO a stake, angered Greens and the FDP, which feared security risks. Many saw his policies as a naïve misstep, arguing he prioritised economic interests over strategic concerns, especially given China’s ties to Russia.
His 2023 China visit, emphasising dialogue, was seen as too soft, with critics noting Germany’s slow progress in diversifying supply chains.
Scholz sought to position Germany as a stabilising force in Europe, navigating complex relationships with the US, China and European Union partners. Yet his foreign policy was often seen as reactive rather than assertive.
Chinese President Xi Jinping (R) meets Scholz at the Diaoyutai State Guesthouse in Beijing, China, in April 2024. (EPA-EFE/XINHUA / XIE HUANCHI)Scholz during a press conference in Beijing, China in April 2024. (EPA-EFE/ANDRES MARTINEZ CASARES)Chinese Premier Li Keqiang (CL) and Scholz (CR) during a meeting at the Great Hall of the People in Beijing, China in November 2022. (EPA-EFE/KAY NIETFELD)
On climate policy, Scholz’s coalition prioritised ambitious “green” goals, aligning with the Greens party push for renewable energy and net-zero targets.
Measures included expanding wind and solar, phasing out coal by 2030 and promoting electric vehicles.
These plans, to many, were seen as poorly executed though. High energy costs and reliance on gas imports, exacerbated by the Ukraine war’s disruption of Russian supplies, burdened German consumers and industry.
The FDP’s resistance to costly “green” subsidies further stalled progress, while Scholz’s compromise on LNG terminals alienated environmentalists. His climate agenda, while bold on paper, was seen as faltering under economic and political pressures.
Scholz (C) looks on during a tour of the Evonik Industries Rheticus project facility in Marl, Germany, in August 2024. (EPA-EFE/FLASHPIC)Scholz stands in front of the slogan “Germany needs a strong industry, needs steel” at the opening tour at the annual industry trade fair Hannover Messe’ in Hanover in April 2024. (EPA-EFE/HANNIBAL HANSCHKE)
Economic stagnation, migration challenges and infrastructure decay compounded Scholz’s woes.
Temporary border checks failed to curb populist gains from the right-wing Alternative for Germany (AfD) party and Sahra Wagenknecht’s left-wing populist BSW. By early 2025, the SPD polled at a dismal 17 per cent.
Scholz’s robotic “Scholzomat” persona and inability to unify his coalition cemented his weak image, leaving Germany poised for the incoming CDU-led government under Friedrich Merz.
Chairman of the Christian Democratic Union (CDU) party Friedrich Merz (R) speaks in front of Scholz (3-L), German economy minister Robert Habeck (2-L) and finance minister Christian Lindner (L). (EPA-EFE/CLEMENS BILAN)Alice Weidel, co-leader of the AfD, passes Scholz as they attend a debate. As Scholz stepped down as leader of Germany, AfD was polling as the biggest political party of the country. (Adam Berry/Getty Images)
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