The mood was grim when 600 delegates from Germany's center-left Social Democrats (SPD) headed to Berlin for their national party conference last weekend. Although the SPD won over 26% in the previous general election in 2021 and has since led the federal government, new polls suggest that if national elections were held now, the party would receive just 14% of the vote.  

Four out of five eligible voters say they are dissatisfied specifically with the work of Chancellor Olaf Scholz. That is an all-time low for a German head of government. 

"The house is burning, and people are losing faith in us," Philipp Türmer, who leads Jusos, the SPD's youth wing, told delegates. 

Between cutting and borrowing 

Crisis after crisis has hit Germany since the SPD took over government two years ago, with the support of the Greens and business-first Free Democrats (FDP). The latest one: a decision by the Constitutional Court ruling the government's budget partially unconstitutional. In 2024, that leaves a shortfall of €17 billion ($18.3 billion), according to a government estimate. 

There is internal disagreement about how to plug that hole. The SPD and Greens want to declare a national emergency, allowing them to suspend constitutional debt rules and borrow more money. The FDP is against that. 

Finding a solution is a "very difficult task," Scholz told party conference delegates. "Especially when you can't just do it the way you think is right, but also need the agreement of others." 

He insisted, however, that the governing coalition would find a solution, one that would not lead to the "dismantling" of the social welfare state that the FDP has been pushing for. 

The chancellor is not known as a compelling orator. He usually reads his speeches, his voice monotonous. Not for nothing is he nicknamed the "Scholzomat" on account of his robotic style of delivery. Pointing to his seemingly unshakable self-confidence, critics say he comes across as condescending, especially when he is defensive.

But at the weekend conference, Scholz's 51-minute address was met with standing ovations from the party delegates.

Suspend and reform 

Given the budget woes, there are new calls to "modernize" the so-called debt brake, which strictly regulates how much the German state can borrow. Proponents of constitutional reform fear that the spending restrictions are limiting Germany's ability to make much-needed investments. 

"China, the US, South Korea, India — the world's largest economies are investing massively in climate-neutral technologies and digitalization," Lars Klingbeil, the party's co-chair, said. "It's about jobs and innovation, prosperity and security. The future of this country is a state that invests, that protects, that provides security in these turbulent times." 

Jusos tried to push through a conference vote to do away with the debt brake altogether. That failed, but they did manage to get an agreement on suspending it for 2024, with designs to reform it thereafter. 

One area of imperiled policy at the federal level is Germany's support for Ukraine in its fight against Russia's full-scale invasion. Scholz promised that the billions Germany pledged would be there but recognized that a prolonged war means doing "what is necessary for a long time." 

In the United States, too, money for Ukraine is running into the friction of domestic politics. Scholz said that the future of bipartisan support for Ukraine is hardly assured, which means Germany must be "in a position" to step up even more. 

Countering right-wing populism 

Part of Scholz's address to delegates focused on the renewed rise of right-wing populism — in Germany and around Europe. He blamed socioeconomic upheaval that has left many uncertain about "whether it would turn out well for them and their families." 

In Germany, the far-right Alternative for Germany (AfD) is seeing record success in polls. In some states, they are the most favored party, even as domestic intelligence has designated parts of the AfD as far-right threats to German democracy. 

At the same time, the AfD's anti-migrant and xenophobic positioning has been amplified by other parties, including the SPD. Scholz has recently come out in favor of faster deportations of asylum seekers.  

A united front 

Despite the ongoing political malaise with no clear solution, the party conference organizers felt they had achieved their goal of showing a sense of solidarity.  

"The SPD won the election with unity and confidence," said Saskia Esken, the party's other co-leader, referring to the 2021 vote. 

Her counterpart, Klingbeil, acknowledged that the "task is huge. But I am firmly convinced that there is no other political force that can achieve all of this."

This article was originally written in German.

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