Challenges facing Olaf Scholz

Germany’s new coalition includes three parties that have never governed together before – the Social Democrats (SDP), Greens and Free Democrats (FDP) – and faces a host of urgent issues
        
Escalating pandemic
Karl Lauterbach: Health minister (SPD)
Trained epidemiologist – nicknamed prophet of doom – is in charge of fighting Germany’s fourth Covid-19 wave. Faces anti-lockdown protests from virus-deniers and anti-vaxxers

Economy
Olaf Scholz: Chancellor (Centre-left SPD)
Former finance minister must deal with slump in factory orders, shortages of raw materials and products – such as microchips – plaguing auto industry. Tough new Covid controls could suppress consumer activity Inflation has surged to 6%, far exceeding European Central Bank’s 2% goal

Climate issues
Robert Habeck: Economics minister (Greens)
Faces looming power supply gap once all coal and nuclear power stations are closed. Plans to replace petrol and diesel cars with 15 million electric vehicles

Foreign policy challenges
Annalena Baerbock: Foreign minister (Greens)
One of first extensive tests of coalition could be response to possible Russian invasion of Ukraine. Likely row over sanctions and Nord Stream 2 gas pipeline from Russia

Debt versus investment
Christian Lindner: Finance minister (pro-business FDP)
Constitutional cap on new borrowing – so-called debt brake – and SPD’s plan to invest billions in economy and infrastructure will trigger fights over spending priorities


Sources: Atlantic Council, Financial Times, Reuters 
Pictures: Getty Images 
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