During the last Social Democratic government in Germany, the chancellor, Gerhard Schröder, cut benefits and undertook a painful overhaul of the labor market between 2003 to 2005 in a bid to bring down a jobless toll that had surpassed five million. Mr. Scholz, then the party’s general secretary, became the public face of the changes.
Unemployment did gradually fall, but the program also helped create a sprawling low-wage sector and prompted many working-class voters to defect from the Social Democrats.
Understand Germany’s New Government
Card 1 of 6The post-Merkel era begins. For the first time in 16 years, Germany will have a center-left government and a new chancellor, Olaf Scholz, whose job will be to fill the shoes of Angela Merkel. Here’s what to know about the new government:
Who is Olaf Scholz? A lifelong Social Democrat, Mr. Scholz, 63, has been a familiar face in German politics and served in two governments led by Ms. Merkel’s Christian Democratic Party, most recently as her finance minister. But he has also been something of a political chameleon.
An uncommon coalition. The new government led by Mr. Scholz brings together three parties — the Social Democrats, the environmentalist Greens and the pro-business Free Democrats. It is the first time since the 1950s that three partners have formed a government.
The governing deal. Despite their differences, the parties said they had found enough common ground to push forward with plans to beat back the pandemic, increase the minimum wage, address climate change and legalize marijuana.
The pandemic offers a crucial test. A spike in cases has thrust Germany into its worst crisis of the pandemic, vaulting the issue to the top of the coalition’s agenda. But in its first test, the incoming government sent mixed signals before the latest wave forced a retreat to tougher measures.
Foreign policy crises await. Rarely has a German leader come into office with so many burning crises. Mr. Scholz will have to deal with tensions on the Polish-Belarusian border, a Russian president mobilizing troops near Ukraine, a more confrontational China and a less dependable U.S.
Professor Sandel argues that it was around this time that center-left parties, including the Democrats of President Bill Clinton, embraced the market triumphalism of the right, became more closely identified with the values and interests of the well-educated and began losing touch with working-class voters.
Mr. Scholz, once a fiery young socialist who joined his party as a teenager, defended workers as a labor lawyer in the 1970s before gradually mellowing into a post-ideological centrist. Today he is considered to be to the right of much of the party’s base, not unlike Mr. Biden, with whom he is sometimes compared, even though, like Mr. Biden, he has demonstrated some liberal reflexes.