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Is Angela Merkel staging a comeback?

Is Angela Merkel staging a comeback?

Six months ago, after 14 years in power, German Chancellor Angela Merkel's star appeared to be waning. Her coalition government was taking a hit in the polls, prompting some members of her once-loyal bloc to go rogue. Meanwhile, the European Union was as fragmented as ever, and concerns about Merkel's health sparked rumors that she could be forced to hand the reins over to a successor even before her long-planned move to step down next year.

Now, Merkel's competent handling of the COVID-19 crisis in Germany has burnished her image at home and abroad. What will this mean for her political legacy?

Pragmatist-in-chief: Merkel's long political track record suggests that Germany's success at managing the outbreak — it has recorded fewer COVID deaths per capita than the US states of Arizona, Florida, and South Carolina — is at least partly attributable to the chancellor's demeanour and leadership style. A trained scientist, Merkel has long been known for her cautious, analytic, and measured approach to problem solving.

While countries like France, Italy, and Spain were caught off guard as COVID-19 began sweeping Europe, Merkel's evidence-based thinking prompted her to quickly assemble an integrated coronavirus task force made up of the country's university medical faculties to help steer the federal response. And it worked. Germany rolled out one of the most efficient testing and tracing schemes in the world. It also allowed Merkel to ditch her "lame duck" image, with 82 percent of Germans now saying that she has done a good job weathering the COVID storm.

How will Merkel use this momentum? The chancellor's return from the political dead comes just as Germany takes over the European Union's rotating presidency for a six-month term. Merkel will now be charged with steering the bloc out of the worst global recession in decades. (The Euro area's economy is forecast to contract by more than 10 percent this year, according to the IMF.)

Merkel said recently that "extraordinary circumstances call for extraordinary measures," abandoning her usually-cautious approach. Together with France's President Emmanuel Macron, she has called for a whopping 750 billion euro bailout fund for the bloc, the bulk of which would be borrowed from financial markets and given out as grants rather than loans. This is a remarkable about-face for the usually tight-fisted German government (other northern European countries, such as Austria and the Netherlands, are strongly opposed). But Merkel's sense of urgency about the peril facing the European Union seems to have overridden her natural fiscal caution. "For Europe to survive," Merkel said recently, "its economy needs to survive."

Indeed, given the size of Germany's economy — it's the biggest in the eurozone, accounting for more than a quarter of the bloc's economic output — and the fact that the German Federal Bank is the most powerful central bank in Europe, Berlin's cooperation is critical to any EU plan.

If Merkel can pull off this recovery effort, holding the EU project together economically despite its deepening political divisions, it would be a remarkable legacy for a leader whose management of past crises has mostly deepened rifts within the 27-member bloc.

Recall Berlin's handling of the European debt crisis in 2009, where Merkel insisted that highly indebted countries like Greece and Spain impose tough austerity measures. Despite eventually softening her position, Merkel's approach stoked resentment of Germany's political and economic clout. Similarly, Merkel's handling of Europe's refugee crisis in 2015, where she pushed for quotas that would force poorer countries to accept refugees, helped fuel the rise of right wing populists and Euroskeptics in the UK, Italy, Hungary, Poland, and Spain — and gave renewed emphasis to identity politics within Germany itself.

The road ahead: As pandemic-induced economic pain deepens in the months ahead, Merkel will surely have her job cut out for her. But now that she has her groove back, can her final act be to rescue Europe?

Khant Thaw Htoo is a young engineer who works in Eni's Sakura Tower office in the heart of Yangon. As an HSE engineer, he monitors the safety and environmental impact of onshore and offshore operations. He also looks out for his parents' well-being, in keeping with Myanmar's traditions.

Learn more about Khant in the final episode of the Faces of Eni series, which focuses on Eni's employees around the world.

On his first day as president, Joe Biden signed a remarkable series of executive orders. Boom! The US rejoins the Paris Climate Accord. Bang! The United States rejoins the World Health Organization. Pow! No more ban on immigration from many Muslim-majority countries. Biden's press secretary reminded reporters later in the day that all these orders merely begin complex processes that take time, but the impact is still dramatic.

If you lead a country allied with the US, or you're simply hoping for some specific commitment or clear and credible statement of purpose from the US government, you might feel a little dizzy today. The sight of an American president (Barack Obama) signing his name, of the next president (Donald Trump) erasing that name from the same legislation/bill, and then the following president (Biden) signing it back into law again will raise deep concerns over the long-term reliability of the world's still-most-powerful nation.

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Ian Bremmer discusses the World In (more than) 60 Seconds:

Biden's first scheduled call with a world leader will be with Canada's Justin Trudeau. What's going on with the Keystone Pipeline?

Well, Biden said that that's it. Executive order, one of the first is that he will stop any construction or development of the Keystone Pipeline. This is of course an oil pipeline that would allow further oil sands oil to come to the United States. The infrastructure is significantly overstretched, it's led to backlogs, inefficiency, accidents, all the rest, but it also facilitates more energy development and keeps prices comparatively down if you get it done. So, there are lots of reasons why the energy sector in Canada wants it. Having said all of that, Trudeau, even though he's been a supporter of Keystone XL, let's keep in mind that he did not win support in Alberta, which is where the big energy patch in Canada is located. This is a real problem for the government of Alberta, Canada is a very decentralized federal government, even more so than the United States. The premier of Alberta is immensely unhappy with Biden right now, they've taken a $1.5 billion equity stake in the project. I expect there will actually be litigation against the United States by the government of Alberta. But Trudeau is quite happy with Biden, his relationship was Trump was always walking on eggshells. The USMCA in negotiations ultimately successful but were very challenging for the Canadians, so too with the way Trump engaged in relations on China. All of this, the fact that Trump left the nuclear agreement with Iran, the Paris Climate Accords, WHO, all of that is stuff that Trudeau strongly opposed. He's going to be much more comfortable with this relationship. He's delighted that the first call from Biden is to him. And it certainly creates a level of normalcy in the US-Canada relationship that is very much appreciated by our neighbors to the North.

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Kevin Sneader, Global Managing Partner at McKinsey & Company, provides perspective on what corporate business leaders are thinking during the global coronavirus crisis:

Should businesses be pessimistic or optimistic about 2021?

It's easy to be gloomy about the year ahead when faced with the realities of a cold, bleak winter in much of the world. Add to that lockdowns across Europe, surging case numbers and hospitalizations, and dreadful events in the Capitol in the US to name a few reasons for pessimism. But I think there is a case for optimism when it comes to this year. After all, it's true to say that it's always darkest before the dawn, and my conversations with business leaders suggest there are reasons to be positive by 2021.

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Renowned tech journalist Kara Swisher has no qualms about saying that many of the country's social media companies need to be held accountable for their negative role in our current national discourse. Swisher calls for "a less friendly relationship with tech" by the Biden administration, an "internet bill of rights" around privacy, and an investigation into antitrust issues.

Swisher, who hosts the New York Times podcast Sway, joins Ian Bremmer for the latest episode of GZERO World, airing on public television nationwide beginning this Friday, January 22th. Check local listings.

The GZERO World Podcast with Ian Bremmer. Listen now.


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