Chancellor of Germany from 1998 to 2005
Gerhard Fritz Kurt "Gerd" Schröder (; born 7 April 1944) is a German former politician who served as Chancellor of Germany from 1998 to 2005. From 1999 to 2004, he was also the Leader of the Social Democratic Party of Germany (SPD). As chancellor, he led a coalition government of the SPD and Alliance 90/The Greens. Since leaving public office, Schröder has worked for Russian state-owned energy companies, including Nord Stream AG, Rosneft, and Gazprom.
Schröder was a lawyer before becoming a full-time politician, and he was Minister President of Lower Saxony (1990–1998) before becoming chancellor. Following the 2005 federal election, which his party lost, and after three weeks of negotiations, he stood down as chancellor in favour of Angela Merkel of the rival Christian Democratic Union. He was chairman of the board of Nord Stream AG and of Rosneft but in 2022 resigned from the latter and opted not to join the board of Russian state-run gas company Gazprom. He also had roles as a global manager for investment bank Rothschild, and as chairman of the board of football club Hannover 96.
After the 2022 Russian invasion of Ukraine, Schröder was criticized for his policies towards Vladimir Putin's government, his work for Russian state-owned companies, and his lobbying on behalf of Russia. In March 2022, the Public Prosecutor General initiated proceedings related to accusations against Schröder of complicity in crimes against humanity due to his role in Russian state-owned corporations, while the CDU/CSU group demanded that Schröder be included in the European Union sanctions against individuals with ties to the Russian government. An SPD party arbitration committee ruled in March 2023 that he had not violated any party rules and would remain a member of the party.
Early life and education.
Schröder was born in Blomberg, Lippe, in Nazi Germany. His father, Fritz Schröder, a lance corporal in the Wehrmacht, was killed in action in World War II in Romania on 4 October 1944, almost six months after Gerhard's birth. His mother, Erika (née Vosseler), worked as an agricultural labourer to support herself and her two sons.
After the war, the area where Schröder lived became part of West Germany. He completed an apprenticeship in retail sales in a Lemgo hardware shop from 1958 to 1961 and subsequently worked in a Lage retail shop and after that as an unskilled construction worker and a sales clerk in Göttingen while studying at night school for a general qualification for university entrance (Abitur). He did not have to do military service because his father had died in the war. In 1966, Schröder secured entrance to a university, passing the Abitur exam at Westfalen-Kolleg, Bielefeld. From 1966 to 1971 he studied law at the University of Göttingen.
In 1976, he passed his second law examination, and he subsequently worked as a lawyer until 1990. Among his more controversial cases, Schröder helped Horst Mahler, a founding member of the Baader-Meinhof terrorist group, to secure both an early release from prison and permission to practice law again in Germany.
Early political career.
Schröder joined the Social Democratic Party in 1963. In 1978 he became the federal chairman of the Young Socialists, the youth organisation of the SPD. He spoke for the dissident Rudolf Bahro, as did President Jimmy Carter, Herbert Marcuse, and Wolf Biermann.
Member of the German Bundestag, 1980–1986.
In 1980, Schröder was elected to the German Bundestag (federal parliament), where he wore a sweater instead of the traditional suit. Under the leadership of successive chairmen Herbert Wehner (1980–83) and Hans-Jochen Vogel (1983–86), he served in the SPD parliamentary group. He also became chairman of the SPD Hanover district.
Considered ambitious from early on in his political career, it was widely reported and never denied, that in 1982, a drunken Schröder stood outside the West German federal chancellery yelling: "I want to get in." That same year, he wrote an article on the idea of a red/green coalition for a book at Olle &amp; Wolter, Berlin; this appeared later in "Die Zeit". Chancellor Willy Brandt, the SPD and SI chairman, who reviewed Olle &amp; Wolter at that time, had just asked for more books on the subject.
In 1985, Schröder met the GDR leader Erich Honecker during a visit to East Berlin. In the 1986 Lower Saxony state election, Schröder was elected to the Landtag of Lower Saxony and became leader of the SPD group.
Minister-President of Lower Saxony, 1990–1998.
After the SPD won the state elections in June 1990, Schröder became Minister-President of Lower Saxony as head of an SPD-Greens coalition; in this position, he also won the 1994 and 1998 state elections. He was subsequently also appointed to the supervisory board of Volkswagen, the largest company in Lower Saxony and of which the state of Lower Saxony is a major stockholder.
Following his election as Minister-President in 1990, Schröder also became a member of the board of the federal SPD. In 1997 and 1998, he served as President of the Bundesrat. Between 1994 and 1998, he was also chairman of Lower Saxonian SPD.
During Schröder's time in office, first in coalition with the environmentalist Green Party, then with a clear majority, Lower Saxony became one of the most deficit-ridden of Germany's 16 federal states and unemployment rose higher than the national average of 12 percent. Ahead of the 1994 elections, SPD chairman Rudolf Scharping included Schröder in his shadow cabinet for the party's campaign to unseat incumbent Helmut Kohl as chancellor. During the campaign, Schröder served as shadow minister of economic affairs, energy and transport.
In 1996, Schröder caused controversy by taking a free ride on the Volkswagen corporate jet to attend the Vienna Opera Ball, along with Volkswagen CEO Ferdinand Piëch. The following year, he nationalized a big steel mill in Lower Saxony to preserve jobs.
In the 1998 state elections, Schröder's Social Democrats increased their share of the vote by about four percentage points over the 44.3 percent they recorded in the previous elections in 1994 – a postwar record for the party in Lower Saxony that reversed a string of Social Democrat reversals in state elections elsewhere.
Chancellor of Germany, 1998–2005.
Cabinets.
First cabinet, 1998–2002.
Following the 1998 national elections, Schröder became chancellor as head of an SPD-Green coalition. Throughout his campaign for chancellor, he portrayed himself as a pragmatic "new" Social Democrat who would promote economic growth while strengthening Germany's generous social welfare system.
After the resignation of Oskar Lafontaine as Leader of the Social Democratic Party in March 1999, in protest at Schröder's adoption of a number of what Lafontaine considered "neo-liberal" policies, Schröder took over his rival's office as well. In April 1999, in Germany's first session in the restored Reichstag, to applause he quoted Albanian writer Ismail Kadare, saying: "The Balkans is the yard of the European house, and in no house can peace prevail so long as people kill each other in its yard." In a move meant to signal a deepening alliance between Schröder and Prime Minister Tony Blair of the United Kingdom, the two leaders issued an eighteen-page manifesto for economic reform in June 1999. Titled "Europe: The Third Way", or in German, it called on Europe's centre-left governments to cut taxes, pursue labour and welfare reforms and encourage entrepreneurship. The joint paper said European governments needed to adopt a "supply-side agenda" to respond to globalisation, the demands of capital markets and technological change.
Schröder's efforts backfired within his own party, where its left-wing rejected the Schröder–Blair call for cutbacks to the welfare state and pro-business policies. Instead, the paper took part of the blame for a succession of six German state election losses in 1999 for the Social Democratic Party. Only by 2000, Schröder managed to capitalise on the donations scandal of his Christian Democratic opposition to push through a landmark tax reform bill and re-establish his dominance of the German political scene.
Schröder's tenure oversaw the seat of government move from Bonn to Berlin. In May 2001, Schröder moved to his new official residence, the Federal Chancellery in Berlin, almost two years after the city became the seat of the German Government. He had previously been working out of the building in eastern Berlin used by the former leaders of East Germany.
Second cabinet, 2002–2005.
Throughout the build-up to the 2002 German election, the Social Democrats and the Green Party trailed the centre-right candidate Edmund Stoiber until the catastrophe caused by rising floodwater in Germany led to an improvement in his polling numbers. Furthermore, his popular opposition to a war in Iraq dominated campaigning in the run-up to the polls. At 22 September 2002 vote, he secured another four-year term, with a narrow nine-seat majority down from 21.
In February 2004, Schröder resigned as chairman of the SPD amid growing criticism from across his own party of his reform agenda; Franz Müntefering succeeded him as chairman. On 22 May 2005, after the SPD lost to the Christian Democrats (CDU) in North Rhine-Westphalia, Gerhard Schröder announced he would call federal elections "as soon as possible". A motion of confidence was subsequently defeated in the Bundestag on 1 July 2005 by 151 to 296 (with 148 abstaining), after Schröder urged members not to vote for his government in order to trigger new elections. In response, a grouping of left-wing SPD dissidents and the Party of Democratic Socialism agreed to run on a joint ticket in the general election, with Schröder's rival Oskar Lafontaine leading the new group.
The 2005 German federal elections were held on 18 September. After the elections, neither Schröder's SPD-Green coalition nor the alliance between CDU/CSU and the FDP led by Angela Merkel achieved a majority in parliament, but the CDU/CSU had a stronger popular electoral lead by one percentage point. On election night, both Schröder and Merkel claimed victory and chancellorship, but after initially ruling out a grand coalition with Merkel, Schröder and Müntefering entered negotiations with her and the CSU's Edmund Stoiber. On 10 October, it was announced that the parties had agreed to form a grand coalition. Schröder agreed to cede the chancellorship to Merkel, but the SPD would hold the majority of government posts and retain considerable control of government policy. Merkel was elected chancellor on 22 November.
On 11 October 2005, Schröder announced that he would not take a post in the new cabinet and, in November, he confirmed that he would leave politics as soon as Merkel took office. On 23 November 2005, he resigned his Bundestag seat.
On 14 November 2005, at a SPD conference in Karlsruhe, Schröder urged members of the SPD to support the proposed coalition, saying it "carries unmistakably, perhaps primarily, the imprint of the Social Democrats". Many SPD members had previously indicated that they supported the coalition, which would have continued the policies of Schröder's government, but had objected to Angela Merkel replacing him as chancellor. The conference voted overwhelmingly to approve the deal.
Domestic policies.
In his first term, Schröder's government decided to phase out nuclear power, fund renewable energies, institute civil unions for same-sex partners, and liberalise the naturalization law.
During Schröder's time in office, economic growth slowed to only 0.2% in 2002 and Gross Domestic Product shrank in 2003, while German unemployment was over the 10% mark. Most voters soon associated Schröder with the Agenda 2010 reform program, which included cuts in the social welfare system (national health insurance, unemployment payments, pensions), lower taxes, and reformed regulations on employment and payment. He also eliminated capital gains tax on the sale of corporate stocks in an attempt to make the country more attractive to foreign investors.
After the 2002 election, the SPD steadily lost support in opinion polls. Many increasingly perceived Schröder's Third Way program to be a dismantling of the German welfare state. Moreover, Germany's high unemployment rate remained a serious problem for the government.
Schröder's tax policies were also unpopular; when the satirical radio show "The Gerd Show" released "The Tax Song" (), featuring Schröder's voice (by impressionist Elmar Brandt) lampooning Germany's indirect taxation, it became Germany's 2002 Christmas #1 hit and sold over a million copies.
The fact that Schröder served on the Volkswagen board (a position that came with his position as minister-president of Lower Saxony) and tended to prefer pro-car policies led to him being nicknamed the car chancellor ().
European integration.
In 1997, Schröder joined the minister-presidents of two other German states, Kurt Biedenkopf and Edmund Stoiber, in making the case for a five-year delay in Europe's currency union. After