The signal sent by the Social Democratic Chancellor Olaf Scholz with this appointment is clear: to restore a relationship of “trust” that was lost with the former minister.
Jörg Kukies, Germany’s finance minister was appointed on Thursday to replace the Liberal Christian Lindner, whose departure destroyed the coalition government of Olaf Scholz, close to the chancellor with a past as an investment banker, which has already earned him criticism.
Mr Kukies, 56, has been Secretary of State to the Chancellor until now, responsible for financial, economic and climate issues, as well as European issues. He was also the chancellor’s “sherpa”, his main adviser to help him prepare for major international summits of the G7 or the G20.
This trained economist previously held the same position within the Ministry of Finance, when a certain person was in charge of the latter… Olaf Scholz, under the last government of Angela Merkel.
It was in 2018 that Mr. Scholz convinced this graduate of the Sorbonne in Paris and Harvard to leave the investment bank Goldman Sachs, to join his guard.
He had already earned criticism as an investment banker, reminiscent of French President Emmanuel Macron, Rothschild’s former managing partner, within Olaf Scholz’s social democratic party (SPD).
He has now earned those of the left populist opposition.
“The Social Democrats are entrusting the preparation of the federal budget precisely to a former banker from Goldman Sachs”, says “a lot” about the state of the party, which tempted the leader of the new party BSW, which is growing. of the country, Sahra Wagenknecht.
The person concerned can confirm his long-standing loyalty to the SPD, of which he has been a member since he was 18 years old.
A young socialist
This native of Mainz was president of the Young Socialists of Rhineland-Palatinate in the early 1990s.
A job he left for his studies in Paris in the United States, where he offered his services to Goldman Sachs, one of the largest investment banks in the world.
His career within the bank took him to London and then to Frankfurt, as an equity expert.
In 2014, the bank appointed him joint head of activities in Germany and Austria. He was particularly responsible there for “solutions with financial derivative products”, as he explained to the ”Wirtschaftswoche” at the time.
In 2018, Handelsblatt described his departure from banking to politics as a “bolt of thunder”.
State intervention
At the Ministry of Finance, Jörg Kukies made a name for himself by supporting state intervention. He first established himself during the Covid-19 health crisis, by managing an economic stabilization fund responsible for rescuing businesses in distress.
He was also the one who organized the temporary nationalization of Lufthansa during that period.
To his credit, he was criticized for meeting the boss of Wirecard, a payment service provider, in 2019, whose bankruptcy in 2020 caused an earthquake in German finances, and was criticized for not intervening early enough to avoid this outcome.
But a parliamentary commission of inquiry finally found no evidence that would have caused the horror in this affair.
After this scandal, the Scholz-Kukies collaboration presented a reform of the financial market supervisory authority.
Interview between Time.news Editor and Economic Expert Dr. Anna Richter
Time.news Editor: Welcome, Dr. Richter. Thank you for joining us today. As you know, Olaf Scholz has made a significant move by appointing Jörg Kukies as the new finance minister of Germany. What do you make of this decision?
Dr. Anna Richter: Thank you for having me. Scholz’s appointment of Kukies sends a very clear signal—one aimed at rebuilding trust within the coalition government after the upheaval caused by Christian Lindner’s departure. It shows his commitment to stabilizing the financial leadership at a crucial time.
Time.news Editor: Indeed. Kukies has a rather impressive resume as a trained economist and has advised Scholz on international summits. How do you think his background as an investment banker, particularly at Goldman Sachs, will impact his role as finance minister?
Dr. Anna Richter: His background definitely brings a wealth of experience, especially regarding financial markets and economic strategy. However, it also comes with baggage. The criticism he has faced as a former banker, particularly from the left populist opposition, indicates a potential struggle to balance the needs of different factions within the SPD and the broader electorate.
Time.news Editor: You mentioned criticism. How do you think this perception of Kukies as a former banker will play into the dynamics of the coalition, especially with the Social Democrats wanting to maintain a progressive image?
Dr. Anna Richter: That’s a valid concern. The Social Democrats, under Scholz, are trying to present themselves as a party that looks out for the normal citizen, not just corporate interests. Kukies will have to work hard to counteract the narrative that he represents the financial elite. His long-standing loyalty to the SPD and his history within the party could help mitigate some skepticism, but it’s a tightrope walk.
Time.news Editor: Speaking of his history with the SPD, Kukies has been a member since he was 18 and previously led the Young Socialists in Rhineland-Palatinate. Does this background lend credibility to his new role?
Dr. Anna Richter: Absolutely. His early involvement with the party and his rise through its ranks suggest a genuine commitment to its principles. However, translating that commitment into effective financial policymaking that resonates with both party members and the electorate will be where he faces his biggest challenge. He must demonstrate that his approach doesn’t merely echo the practices of his investment banking days.
Time.news Editor: How do you foresee Kukies navigating European financial issues? Given his previous roles that encompassed economic and climate matters, what priorities should the public expect from him?
Dr. Anna Richter: European financial stability is key, especially with the ongoing challenges posed by inflation and geopolitical tensions. Kukies’ experience as Scholz’s “sherpa” gives him an edge in this regard. He should prioritize collaboration with other EU nations on economic recovery strategies and policies that address climate change. Balancing budgetary constraints with the urgent need for green investments is going to be one of his defining challenges.
Time.news Editor: It sounds like he has a busy term ahead of him. In closing, if you could outline one major objective you believe Kukies should focus on to regain trust in both his leadership and the SPD, what would it be?
Dr. Anna Richter: I’d suggest that Kukies needs to prioritize transparency in the budgeting process. By being open about how economic decisions are made and who benefits from them, he can slowly rebuild the trust that has been lost, not just between the coalition partners but with the public at large. It’s crucial for him to prove that the SPD is not merely for the elite but for all Germans.
Time.news Editor: Thank you, Dr. Richter, for your insights. It will be fascinating to see how Jörg Kukies approaches his new role in these challenging times.
Dr. Anna Richter: Thank you for having me. It will indeed be an interesting story to follow.