German Chancellor Olaf Scholz poses after the recording of his New Year's speech at the chancellery in Berlin. Reuters
German Chancellor Olaf Scholz poses after the recording of his New Year's speech at the chancellery in Berlin. Reuters
German Chancellor Olaf Scholz poses after the recording of his New Year's speech at the chancellery in Berlin. Reuters
German Chancellor Olaf Scholz poses after the recording of his New Year's speech at the chancellery in Berlin. Reuters

German chancellor Olaf Scholz faces daunting challenge to buck the trend of lost elections


Tim Stickings
  • English
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When Germany's Olaf Scholz takes the stage on January 11 to accept his party's nomination for a second term as chancellor, he will know that an election triumph would defy not only the opinion polls but also a trend of booting out governments.

A bumper year of elections in 2024 proved a disaster for ruling candidates, as leader after leader was punished by voters for social and economic turmoil that unfolded on their watch. Can any president or prime minister defend their position when voters deliver their verdict in 2025?

The situations may differ but the outcome is the same
Paolo Magri

The German chancellor's Social Democrats are fighting for third place in the February 23 election, amid voter concern over migration, extremism and the economy. Centre-right leader Friedrich Merz is favourite to take over.

Poland will choose a new president in May. A populist billionaire is on the brink of a Donald Trump-style comeback in the Czech Republic. Canada's Justin Trudeau has a huge task on his hands to survive January let alone throughout 2025. And even for Ukraine's once-unassailable war leader Volodymyr Zelenskyy there are signs of public discontent.

The return of Mr Trump, who rode the anti-incumbent wave to win back the White House, looms large over politics in Europe. An EU-US trade war could further damage a stop-start economy that many voters have identified as a prime grievance. Any escalation of Middle East conflict would also dampen hopes of an economic boost.

The start of 2025 ushers in “the year when the world’s major players need to start practising what they preach”, said Paolo Magri of the Italian Institute for International Political Studies. “In other words, they will have to translate their plans, promises and ambitions into action.”

“Germany’s new government, regardless of stripe, will have to work out how to return to growth, how much to spend on doing so and then get on with the job,” Mr Magri said. “The situations may differ but the outcome is the same: a Europe with ever more urgent need for reform, and ever less political strength to implement it.”

Of the leaders who assembled at last year's G7 summit in Italy, two are already out of office: Britain's Rishi Sunak, whose Conservative Party slumped to its worst ever result in the July election, and Japan's Fumio Kishida, whose party lost its majority in October. A third, US President Joe Biden, is about to leave office. Mr Scholz and Mr Trudeau face defeat in Germany and Canada respectively, while a sixth, France's Emmanuel Macron, lost a parliamentary election that left him something of a lame duck. Only Italy’s Giorgia Meloni appears relatively safe for now.

Ruling parties were ousted in Portugal and Iceland and lost majorities in India and South Africa, the far right won an election in Austria, and a populist surge in Romania was annulled over fears of Russian influence. Governing parties did win re-election in Mexico and Ireland, the EU’s ruling commission remains in Ursula von der Leyen’s hands, and Russia’s Vladimir Putin won another six-year term in a stage-managed election with no serious opposition.

After venting their frustrations in 2024, people generally have a “cautious hope for the future” in 2025, say analysts at polling company Ipsos. Although 65 per cent of people surveyed in a 33-country study thought last year was a bad one, that was the lowest figure since 2019.

But “while on a global level people are most positive the economy will be stronger than in recent years, in Europe a number of countries are less positive in their outlook than last year”, Ipsos analysts Freddie Dale and Nick Chiarelli said. In France only half expect things to improve.

The return of Donald Trump capped a year of elections in which voters vented their anger at ruling parties. AFP
The return of Donald Trump capped a year of elections in which voters vented their anger at ruling parties. AFP

German contest

Germany's election was not due until September 2025 but time has run out early for Mr Scholz after his three-party coalition collapsed over rival economic plans. A Christmas market attack in Magdeburg has pushed migration and extremism back up the agenda as the far-right Alternative for Germany (AfD) defends second place in the polls.

Mr Scholz has rallied his troops by reminding them that he pulled off a remarkable comeback to win the chancellery in 2021, having trailed in third for most of the year. The Social Democrats emphasise his calm demeanour and leadership qualities but most Germans feel he has lacked them in office.

There is no sign of great public affection for his rival Mr Merz, a millionaire who flies on a private plane and was banished from frontline politics for years after falling out with former chancellor Angela Merkel, but polls suggest Germans see him as the best of a bad bunch. Robert Habeck, the Green candidate for chancellor, is well regarded as a communicator who speaks to voters in plain terms, but his record as Economy Minister is a punching bag for the conservatives. Alternative for Germany (AfD) candidate Alice Weidel has some support but her party is shunned as extremist by all potential coalition partners.

Fixing the German economy will be a key task amid struggles in the flagship car industry. A new government will need to agree “a change of course in economic policy” and a “consistent programme for more growth”, said Clemens Fuest, the head of research institute Ifo.

In a last throw of the dice, Mr Scholz is presenting himself as a peace chancellor who will not risk war with Russia by arming Ukraine with long-range missiles, a step supported by Mr Merz. More than a third of German voters now say military support for Ukraine has “gone too far”.

Conservative leader Friedrich Merz, centre right, looks on course to replace Olaf Scholz, centre, as chancellor of Germany. AFP
Conservative leader Friedrich Merz, centre right, looks on course to replace Olaf Scholz, centre, as chancellor of Germany. AFP

Eastern Europe

Along with Germany's election, Mr Zelenskyy has identified Poland's presidential race as a key contest in 2025. Poland is assuming the EU’s rotating presidency for the first half of the year, bolstering its leadership role while France and Germany falter.

While Donald Tusk runs Poland's government as prime minister, the presidency is a key power base for the rival Law and Justice party after it lost its majority in 2023. Outgoing head of state Andrzej Duda is ineligible to run again, setting up a contest between the two factions.

As Middle East migrants are caught in limbo on Poland’s border with Belarus, Mr Tusk has disappointed activists by taking at least as hard a line as his predecessors. A power struggle with the hard right is sure to produce more tough rhetoric.

Support for Ukrainian President Volodymyr Zelenskyy, right, has fallen, while Polish Prime Minister Donald Tusk, left, has disappointed activists with his hard line on migration, EPA
Support for Ukrainian President Volodymyr Zelenskyy, right, has fallen, while Polish Prime Minister Donald Tusk, left, has disappointed activists with his hard line on migration, EPA

In the Czech Republic, billionaire former prime minister Andrej Babis looks likely to win an election due by the autumn. Mr Babis opposes Ukraine's EU membership bid and caused a stir by suggesting he would not send Czech troops to Poland or the Baltic states if they were attacked by Russia, Nato's cornerstone principle. He later backtracked.

Billionaire former Czech prime minister Andrej Babis looks likely to win an election due by the autumn. AP Photo
Billionaire former Czech prime minister Andrej Babis looks likely to win an election due by the autumn. AP Photo

Then there is Mr Zelenskyy himself. His five-year term would normally have ended in 2024 but no elections can take place until martial law is lifted. With Mr Trump's team pushing for a swift truce even if it means losing territory to Russia, that day could start to come into view.

At the height of global adulation for Mr Zelenskyy's wartime defiance, a poll in March 2022 put his support at 81 per cent among Ukrainians. But by November 2024, a survey of 1,200 people found him trailing his ousted former army general, Valeriy Zaluzhny. If even Mr Zelenskyy becomes vulnerable in 2025, no incumbent is safe.

The biog

Job: Fitness entrepreneur, body-builder and trainer

Favourite superhero: Batman

Favourite quote: We must become the change we want to see, by Mahatma Gandhi.

Favourite car: Lamborghini

The stats

Ship name: MSC Bellissima

Ship class: Meraviglia Class

Delivery date: February 27, 2019

Gross tonnage: 171,598 GT

Passenger capacity: 5,686

Crew members: 1,536

Number of cabins: 2,217

Length: 315.3 metres

Maximum speed: 22.7 knots (42kph)

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

RESULTS

1.30pm Handicap (PA) Dh 50,000 (Dirt) 1,400m

Winner AF Almomayaz, Hugo Lebouc (jockey), Ali Rashid Al Raihe (trainer)

2pm Handicap (TB) Dh 84,000 (D) 1,400m

Winner Karaginsky, Tadhg O’Shea, Satish Seemar.

2.30pm Maiden (TB) Dh 60,000 (D) 1,200m

Winner Sadeedd, Ryan Curatolo, Nicholas Bachalard.

3pm Conditions (TB) Dh 100,000 (D) 1,950m

Winner Blue Sovereign, Clement Lecoeuvre, Erwan Charpy.

3.30pm Handicap (TB) Dh 76,000 (D) 1,800m

Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.

4pm Maiden (TB) Dh 60,000 (D) 1,600m

Winner Bladesmith, Tadhg O’Shea, Satish Seemar.

4.30pm Handicap (TB) Dh 68,000 (D) 1,000m

Winner Shanaghai City, Fabrice Veron, Rashed Bouresly.

Results:

5pm: Baynunah Conditions (UAE bred) Dh80,000 1,400m.

Winner: Al Tiryaq, Dane O’Neill (jockey), Abdullah Al Hammadi (trainer).

5.30pm: Al Zahra Handicap (rated 0-45) Dh 80,000 1,400m:

Winner: Fahadd, Richard Mullen, Ahmed Al Mehairbi.

6pm: Al Ras Al Akhdar Maiden Dh80,000 1,600m.

Winner: Jaahiz, Jesus Rosales, Eric Lemartinel.

6.30pm: Al Reem Island Handicap Dh90,000 1,600m.

Winner: AF Al Jahed, Antonio Fresu, Ernst Oertel.

7pm: Al Khubairah Handicap (TB) 100,000 2,200m.

Winner: Empoli, Pat Dobbs, Doug Watson.

7.30pm: Wathba Stallions Cup Handicap Dh80,000 2,200m.

Winner: Shivan OA, Patrick Cosgrave, Helal Al Alawi.

The specs

Engine: 5.0-litre supercharged V8

Transmission: Eight-speed auto

Power: 575bhp

Torque: 700Nm

Price: Dh554,000

On sale: now

The specs

Engine: Two permanent-magnet synchronous AC motors

Transmission: two-speed

Power: 671hp

Torque: 849Nm

Range: 456km

Price: from Dh437,900 

On sale: now

Traits of Chinese zodiac animals

Tiger:independent, successful, volatile
Rat:witty, creative, charming
Ox:diligent, perseverent, conservative
Rabbit:gracious, considerate, sensitive
Dragon:prosperous, brave, rash
Snake:calm, thoughtful, stubborn
Horse:faithful, energetic, carefree
Sheep:easy-going, peacemaker, curious
Monkey:family-orientated, clever, playful
Rooster:honest, confident, pompous
Dog:loyal, kind, perfectionist
Boar:loving, tolerant, indulgent   

EXPATS
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Seven%20Winters%20in%20Tehran
%3Cp%3E%3Cstrong%3EDirector%20%3A%3C%2Fstrong%3E%20Steffi%20Niederzoll%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Reyhaneh%20Jabbari%2C%20Shole%20Pakravan%2C%20Zar%20Amir%20Ebrahimi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
UAE tour of Zimbabwe

All matches in Bulawayo
Friday, Sept 26 – UAE won by 36 runs
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I

Pakistan World Cup squad

Sarfraz Ahmed (c), Fakhar Zaman, Imam-ul-Haq, Abid Ali, Babar Azam, Haris Sohail, Shoaib Malik, Mohammad Hafeez(subject to fitness), Imad Wasim, Shadab Khan, Hasan Ali, Faheem Ashraf, Junaid Khan, Shaheen Shah Afridi, Mohammad Hasnain      

Two additions for England ODIs: Mohammad Amir and Asif Ali

Updated: January 03, 2025, 5:48 AM