Cabinet gossip
For the record: Scholz’ traffic light partners protest against the Cosco compromise
Federal Chancellor Olaf Scholz (SPD)
© Christoph Soeder / DPA
Chancellor Scholz prevailed, obviously to the displeasure of his government partners: After the Cosco compromise, the FDP and the Greens put their concerns on record.
In the end, there is an agreement, but also a protest that is recorded: Not all members of the government support the decision that Chancellor Olaf Scholz (SPD) pushed forward with determination.
Although the federal cabinet approved a so-called partial ban on Wednesday, according to which the Chinese state-owned company Cosco may only acquire a stake of less than 25 percent in a container terminal in the port of Hamburg – instead of the planned 35 percent – several ministries formally reported serious concerns after the compromise.
The Foreign Office of Federal Foreign Minister Annalena Baerbock (Bündnis 90/Die Grünen) brought a protocol statement to the cabinet, which other departments also joined.
“For the Federal Foreign Office, I expressly point out the considerable risks that arise when elements of the European transport infrastructure are influenced and controlled by China – while China itself does not allow Germany to participate in Chinese ports,” quoted the German Press Agency and Reuters from the note.
China has clearly shown that it is willing to use economic measures to achieve political goals. “The acquisition of shares in the container terminal in Tollerort by the Chinese state shipping company Cosco disproportionately expands China’s strategic influence on the German and European transport infrastructure and Germany’s dependence on China,” it said.
The uneasiness of the Foreign Office is shared by other ministries. The Federal Ministry of Finance of Christian Lindner (FDP) have joined the protocol statement, he said on Twitter. The DPA reported that this also applies to the other departments run by the Liberals. According to information from “Sueddeutsche Zeitung” Robert Habeck’s Federal Ministry of Economics (Bündnis 90/Die Grünen) also endorsed the protocol statement.
Chancellor Olaf Scholz rejects criticism of the Cosco deal
As early as September, Habeck had expressed skepticism about Cosco’s entry into the container terminal operator Tollerort. “I’m leaning in the direction that we don’t allow that,” he said at the time. The container port is only a small part of the overall port, but China could then influence trade.
Foreign Minister Baerbock made a similar statement in one Conversation with the “Süddeutsche Zeitung” warned that the Port of Hamburg was “not just any port”, “but one of the key ports not only for us as an export nation, but for Europe as a whole”.
The FDP-led Ministry of Finance had also voiced criticism: “From the point of view of the BMF, a participation is a fatal economic and geopolitical signal,” he quoted “Mirror” from a letter from State Secretary for Finance Steffen Saebisch to Chancellor Wolfgang Schmidt.
Chancellor Scholz had the criticism of the decision repeatedly rejected. When asked why Scholz ignored warnings from specialist departments, said a government spokeswoman, a stake of 24.9 percent does not create any strategic dependency and no strategic influence. The chancellor had made it clear that it was not about selling the port, but “only” about taking a stake in a single terminal.
A strategic participation in the terminal will be prevented and the acquisition will be reduced to a purely financial participation, the Ministry of Economic Affairs announced. Among other things, Cosco is prohibited from being granted contractual veto rights in strategic business or personnel decisions. Nevertheless, there is talk in government circles of an “emergency solution”.
The problem: If the cabinet had not decided this week, the sale would have been approved automatically and as originally agreed – i.e. with a 35 percent stake. To prevent this, a unified stance on the part of the government was necessary. Scholz’ chancellery, which had pushed for a compromise, played into the hands of time.
Experts see risks, but also “face-saving compromise for both sides”
Despite the slimmed-down participation, economic experts continue to see risks. That The Kiel Institute for the World Economy points this outthat the question of the amount of the participation is not decisive, but the disposal of customer data. “Through the participation in the terminal company, Cosco gains an indirect influence and important information about a critical infrastructure in Germany and Europe”, warned Marcel FratscherHead of the German Institute for Economic Research (DIW).
Meanwhile, Angela Titzrath, head of the port operator HHLA, defended the decision. The cooperation between HHLA and the Cosco Group creates “no one-sided dependencies”, she said. “On the contrary: it strengthens supply chains, secures jobs and promotes value creation in Germany.”
In the traffic light coalition, however, the compromise could cause additional resentment. After Scholz’s word of power to settle the nuclear dispute between the FDP and the Greens, the chancellor has now largely asserted himself for the second time in his government alliance on an important point of contention. Scholz obviously does not share the security concerns. The chancellor may also have had his inaugural visit to Beijing in mind.
Against this background, the Kiel trade economist Rolf Langhammer spoke of a “face-saving compromise for both sides”: A complete stop to the China deal would have put a heavy strain on the Chancellor’s trip to President Xi Jinping, who is about to take another term in office next week – and that shortly before an important G20 summit, which will also deal with China’s position on the Ukraine war.
Sources: “Southgerman newspaper”, “The mirror”German press agency, Reuters, Editorial network Germany