German economy ministry criticized for cronyism

Vice-Chancellor and Economy Minister Robert Habeck's popularity is declining. Now his right-hand man is under fire for giving a friend an influential job. The criticism is blowing back on Habeck himself at a time when controversy rages over the government's plans for the transition to renewable energy.

Habeck's state secretary, Patrick Graichen, a top expert in this field, was part of the team in charge of staffing the German Energy Agency's leadership. Graichen agreed to give the top post to Michael Schäfer. Only much later did Graichen make public that Schäfer was the best man at his wedding 20 years ago.

Nobody is claiming that Schäfer is unfit for the job. He has a long career in climate and environmental policy, including at the environmental think tank Agora Energiewende and the World Wildlife Fund.

Both Habeck and Graichen acknowledge that Graichen should have pulled out of the staffing commission as soon as he became aware that his close friend was an applicant. Both Habeck and Graichen speak of a "mistake." Graichen has foregone his contract and the application procedure will now be repeated.

Back to the beginning

Regardless of any ethical or legal trouble, the political damage has already been done to the Greens-led ministry.

"It's just a small family clan where everyone is related," said Mario Czaja, referring to Habeck's ministry's leadership team. Czaja is the Secretary General of the main opposition party, the center-right Christian Democrats (CDU), which headed the economy ministry for 16 years before the new government took office in 2021. He called for Graichen's resignation.

Habeck has defended Graichen, who is one of the most influential members of the powerful ministry. His role as state secretary has given him significant control over the construction of LNG terminals, for example, which Germany is relying on to reduce dependence on Russian energy.

"In my opinion, Patrick Graichen is the man who saved Germany from a serious energy crisis," Habeck said.

More connections

"From the get-go, the ministry should have handled the selection process for the leadership post differently," Anna-Maija Mertens, the head of Transparency International Germany, said. "Even the suspicion of a conflict of interest can damage trust in institutions."

Habeck has gotten flack from his governing allies, as well. When they entered power at the end of 2021, they promised to increase transparency and take stronger action against corruption and special treatment.

"Robert Habeck should closely examine how the behavior of State Secretary Graichen affects the reputation of his ministry and trust in politics," Torsten Herbst, a member of the neoliberal Free Democrats (FDP), told the Neue Züricher Zeitung, a Swiss newspaper.

The personal relationships don't stop with Graichen himself. His sister, who works for the Öko Institut, an environmental non-profit in southern Germany, is married to another of Habeck's state secretaries. Her professional connection, however, to the Economics Ministry, which includes a climate portfolio, and work for other government bodies pre-date Habeck's appointment.

Germany's public sector ranks tenth in Transparency International's global annual Corruption Perceptions Index. Germany scored 80 of 100 points in the 2021 ranking, compared to 88 for Denmark, New Zealand, and Finland, which top the list.

The ranking suggests that Germany has a low level of perceived corruption, with widespread trust in public institutions and civil servants. However, authorities could do better when it comes to filling public posts, which anti-corruption campaigners say should be formalized.

"So far, appointments run largely on the honor system, that leadership will properly assess potential conflicts of interest," Timo Lange, who heads the Berlin office of LobbyControl, a transparency watchdog. "But we can see in the situation with Graichen that this did not work."

This article was originally written in German.

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