As the world economy struggles to find its footing, the resurgence of the coronavirus and supply chain chokeholds threaten to hold back the global recovery’s momentum, a closely watched report warned on Tuesday.
The overall growth rate will remain near 6 percent this year, a historically high level after a recession, but the expansion reflects a vast divergence in the fortunes of rich and poor countries, the International Monetary Fund said in its latest World Economic Outlook report.
Worldwide poverty, hunger and unmanageable debt are all on the upswing. Employment has fallen, especially for women, reversing many of the gains they made in recent years.
Uneven access to vaccines and health care is at the heart of the economic disparities. While booster shots are becoming available in some wealthier nations, a staggering 96 percent of people in low-income countries are still unvaccinated.
restrictions and bottlenecks at key ports around the world have caused crippling supply shortages. A lack of workers in many industries is contributing to the clogs. The U.S. Labor Department reported Tuesday that a record 4.3 million workers quit their jobs in August — to take or seek new jobs, or to leave the work force.
Germany, manufacturing output has taken a hit because key commodities are hard to find. And lockdown measures over the summer have dampened growth in Japan.
Fear of rising inflation — even if likely to be temporary — is growing. Prices are climbing for food, medicine and oil as well as for cars and trucks. Inflation worries could also limit governments’ ability to stimulate the economy if a slowdown worsens. As it is, the unusual infusion of public support in the United States and Europe is winding down.
6 percent projected in July. For 2022, the estimate is 4.9 percent.
The key to understanding the global economy is that recoveries in different countries are out of sync, said Gregory Daco, chief U.S. economist at Oxford Economics. “Each and every economy is suffering or benefiting from its own idiosyncratic factors,” he said.
For countries like China, Vietnam and South Korea, whose economies have large manufacturing sectors, “inflation hits them where it hurts the most,” Mr. Daco said, raising costs of raw materials that reverberate through the production process.
The pandemic has underscored how economic success or failure in one country can ripple throughout the world. Floods in Shanxi, China’s mining region, and monsoons in India’s coal-producing states contribute to rising energy prices. A Covid outbreak in Ho Chi Minh City that shuts factories means shop owners in Hoboken won’t have shoes and sweaters to sell.
worldwide surge in energy prices threatens to impose more hardship as it hampers the recovery. This week, oil prices hit a seven-year high in the United States. With winter approaching, Europeans are worried that heating costs will soar when temperatures drop. In other spots, the shortages have cut even deeper, causing blackouts in some places that paralyzed transport, closed factories and threatened food supplies.
China, electricity is being rationed in many provinces and many companies are operating at less than half of their capacity, contributing to an already significant slowdown in growth. India’s coal reserves have dropped to dangerously low levels.
And over the weekend, Lebanon’s six million residents were left without any power for more than 24 hours after fuel shortages shut down the nation’s power plants. The outage is just the latest in a series of disasters there. Its economic and financial crisis has been one of the world’s worst in 150 years.
Oil producers in the Middle East and elsewhere are lately benefiting from the jump in prices. But many nations in the region and North Africa are still trying to resuscitate their pandemic-battered economies. According to newly updated reports from the World Bank, 13 of the 16 countries in that region will have lower standards of living this year than they did before the pandemic, in large part because of “underfinanced, imbalanced and ill-prepared health systems.”
Other countries were so overburdened by debt even before the pandemic that governments were forced to limit spending on health care to repay foreign lenders.
In Latin America and the Caribbean, there are fears of a second lost decade of growth like the one experienced after 2010. In South Africa, over one-third of the population is out of work.
And in East Asia and the Pacific, a World Bank update warned that “Covid-19 threatens to create a combination of slow growth and increasing inequality for the first time this century.” Businesses in Indonesia, Mongolia and the Philippines lost on average 40 percent or more of their typical monthly sales. Thailand and many Pacific island economies are expected to have less output in 2023 than they did before the pandemic.
debt ceiling — can further set back the recovery, the I.M.F. warned.
But the biggest risk is the emergence of a more infectious and deadlier coronavirus variant.
Ms. Gopinath at the I.M.F. urged vaccine manufacturers to support the expansion of vaccine production in developing countries.
Earlier this year, the I.M.F. approved $650 billion worth of emergency currency reserves that have been distributed to countries around the world. In this latest report, it again called on wealthy countries to help ensure that these funds are used to benefit poor countries that have been struggling the most with the fallout of the virus.
“We’re witnessing what I call tragic reversals in development across many dimensions,” said David Malpass, the president of the World Bank. “Progress in reducing extreme poverty has been set back by years — for some, by a decade.”
SAVANNAH, Ga. — Like toy blocks hurled from the heavens, nearly 80,000 shipping containers are stacked in various configurations at the Port of Savannah — 50 percent more than usual.
The steel boxes are waiting for ships to carry them to their final destination, or for trucks to haul them to warehouses that are themselves stuffed to the rafters. Some 700 containers have been left at the port, on the banks of the Savannah River, by their owners for a month or more.
“They’re not coming to get their freight,” complained Griff Lynch, the executive director of the Georgia Ports Authority. “We’ve never had the yard as full as this.”
As he speaks, another vessel glides silently toward an open berth — the 1,207-foot-long Yang Ming Witness, its decks jammed with containers full of clothing, shoes, electronics and other stuff made in factories in Asia. Towering cranes soon pluck the thousands of boxes off the ship — more cargo that must be stashed somewhere.
turmoil in the shipping industry and the broader crisis in supply chains is showing no signs of relenting. It stands as a gnawing source of worry throughout the global economy, challenging once-hopeful assumptions of a vigorous return to growth as vaccines limit the spread of the pandemic.
Germany’s industrial fortunes are sagging, why inflation has become a cause for concern among central bankers, and why American manufacturers are now waiting a record 92 days on average to assemble the parts and raw materials they need to make their goods, according to the Institute of Supply Management.
On the surface, the upheaval appears to be a series of intertwined product shortages. Because shipping containers are in short supply in China, factories that depend on Chinese-made parts and chemicals in the rest of the world have had to limit production.
But the situation at the port of Savannah attests to a more complicated and insidious series of overlapping problems. It is not merely that goods are scarce. It is that products are stuck in the wrong places, and separated from where they are supposed to be by stubborn and constantly shifting barriers.
The shortage of finished goods at retailers represents the flip side of the containers stacked on ships marooned at sea and massed on the riverbanks. The pileup in warehouses is itself a reflection of shortages of truck drivers needed to carry goods to their next destinations.
Vietnam, a hub for the apparel industry, was locked down for several months in the face of a harrowing outbreak of Covid. Diminished cargo leaving Asia should provide respite to clogged ports in the United States, but Mr. Lynch dismisses that line.
“Six or seven weeks later, the ships come in all at once,” Mr. Lynch said. “That doesn’t help.”
Early this year, as shipping prices spiked and containers became scarce, the trouble was widely viewed as the momentary result of pandemic lockdowns. With schools and offices shut, Americans were stocking up on home office gear and equipment for basement gyms, drawing heavily on factories in Asia. Once life reopened, global shipping was supposed to return to normal.
But half a year later, the congestion is worse, with nearly 13 percent of the world’s cargo shipping capacity tied up by delays, according to data compiled by Sea-Intelligence, an industry research firm in Denmark.
Many businesses now assume that the pandemic has fundamentally altered commercial life in permanent ways. Those who might never have shopped for groceries or clothing online — especially older people — have gotten a taste of the convenience, forced to adjust to a lethal virus. Many are likely to retain the habit, maintaining pressure on the supply chain.
“Before the pandemic, could we have imagined mom and dad pointing and clicking to buy a piece of furniture?” said Ruel Joyner, owner of 24E Design Co., a boutique furniture outlet that occupies a brick storefront in Savannah’s graceful historic district. His online sales have tripled over the past year.
On top of those changes in behavior, the supply chain disruption has imposed new frictions.
Mr. Joyner, 46, designs his furniture in Savannah while relying on factories from China and India to manufacture many of his wares. The upheaval on the seas has slowed deliveries, limiting his sales.
He pointed to a brown leather recliner made for him in Dallas. The factory is struggling to secure the reclining mechanism from its supplier in China.
“Where we were getting stuff in 30 days, they are now telling us six months,” Mr. Joyner said. Customers are calling to complain.
His experience also underscores how the shortages and delays have become a source of concern about fair competition. Giant retailers like Target and Home Depot have responded by stockpiling goods in warehouses and, in some cases, chartering their own ships. These options are not available to the average small business.
Bottlenecks have a way of causing more bottlenecks. As many companies have ordered extra and earlier, especially as they prepare for the all-consuming holiday season, warehouses have become jammed. So containers have piled up at the Port of Savannah.
Mr. Lynch’s team — normally focused on its own facilities — has devoted time to scouring unused warehouse spaces inland, seeking to provide customers with alternative channels for their cargo.
Recently, a major retailer completely filled its 3 million square feet of local warehouse space. With its containers piling up in the yard, port staff worked to ship the cargo by rail to Charlotte, N.C., where the retailer had more space.
Such creativity may provide a modicum of relief, but the demands on the port are only intensifying.
On a muggy afternoon in late September, Christmas suddenly felt close at hand. The containers stacked on the riverbanks were surely full of holiday decorations, baking sheets, gifts and other material for the greatest wave of consumption on earth.
Will they get to stores in time?
“That’s the question everyone is asking,” Mr. Lynch said. “I think that’s a very tough question.”
At one particularly tense moment, in October 2020, American intelligence reports detailed how Chinese leaders had become worried that President Trump was preparing an attack. Those concerns, which could have been misread, prompted Gen. Mark A. Milley, the chairman of the Joint Chiefs of Staff, to call his counterpart in Beijing to assure otherwise.
“The Taiwan issue has ceased to be a sort of narrow, boutique issue, and it’s become a central theater — if not the central drama — in U.S.-China strategic competition,” said Evan Medeiros, who served on President Obama’s National Security Council.
China’s ambitious leader, Xi Jinping, now presides over what is arguably the country’s most potent military in history. Some argue that Mr. Xi, who has set the stage to rule for a third term starting in 2022, could feel compelled to conquer Taiwan to crown his era in power.
Mr. Xi said Saturday in Beijing that Taiwan independence “was a grave lurking threat to national rejuvenation.” China wanted peaceful unification, he said, but added: “Nobody should underestimate the staunch determination, firm will and powerful ability of the Chinese people to defend national sovereignty and territorial integrity.”
Few believe a war is imminent or foreordained, in part because the economic and diplomatic aftershocks would be staggering for China. Yet even if the recent flights into Taiwan’s self-declared air identification zone are intended merely as political pressure, not a prelude to war, China’s financial, political and military ascendancy has made preserving the island’s security a gravely complex endeavor.
Until recently, the United States believed it could hold Chinese territorial ambitions in check, but the military superiority it long held may not be enough. When the Pentagon organized a war game in October 2020, an American “blue team” struggled against new Chinese weaponry in a simulated battle over Taiwan.
SEOUL — The signals are confusing. One day, North Korea is raising hopes for dialogue with South Korea, and the next, it is firing missiles or showing off the latest weaponry in its nuclear arsenal.
In the past week alone, North suggested the possibility of inter-Korean summit talks and said it would reopen communication hotlines with its neighbor. It also fired long-range cruise missiles, trotted out what it called its first hypersonic missile and, on Thursday, tested a new antiaircraft missile. Earlier in September, it launched ballistic missiles from a train rolled out of a mountain tunnel, on the same day that it called the South’s president, Moon Jae-in, “stupid.”
Once again, North Korea is turning to a well-honed, two-pronged strategy, designed to let it flex its military muscles without risking retaliation or nixing the chances for dialogue.
In the absence of talks with Washington, the missile tests reminded the world that North Korea is developing increasingly sophisticated weaponry capable of delivering nuclear warheads. But individually, these short-range or still-under-development missiles don’t amount to a direct threat to the United States.
met with then-President Donald J. Trump three times between 2018 and 2019, becoming the first North Korean leader to hold a summit with a sitting American president. But his diplomatic efforts failed to lift crippling sanctions the United Nations imposed on his impoverished country after its nuclear and I.C.B.M. tests. Soon the pandemic hit, further hamstringing the North’s economy.
American and South Korean officials had hoped that the North’s deepening economic troubles, caused by the double whammy of sanctions and the pandemic, would make North Korea more amenable to dialogue.
So far, Mr. Kim has proved them wrong.
Since his talks with Mr. Trump collapsed in early 2019, he has vowed to slog through the economic difficulties while expanding his nuclear arsenal, his country’s single best diplomatic leverage and deterrent against what it considers American threats to topple its government.By demonstrating his country’s growing military capabilities, Mr. Kim has also sought to legitimize his rule at a time when he has been able to deliver little on the economic front to his long-suffering people.
The antiaircraft missile test on Thursday indicated that the North is building a weapon similar to Russia’s S-400, one of the most potent air-defense systems in the world, according to Kim Dong-yub, an expert on North Korean weapons at the University of North Korean Studies.
The Biden administration has repeatedly urged North Korea to return to talks without preconditions. But Mr. Kim said he would not restart negotiations until he was convinced that Washington was ready to ease sanctions and its “hostile policy,” including the joint annual military exercises it conducts with South Korea.
an arms race in the region.
Mr. Kim can’t really attempt shocking provocations like the ones he conducted in 2017 — three I.C.B.M. tests and a nuclear test — that brought the Trump administration to the table. Such tests would sharply raise tensions, invite more U.N. sanctions and potentially invoke the ire of China by ruining the mood for the Beijing Winter Olympics in February.
desperate to put his Korean Peninsula peace process, his signature foreign policy, back on track before his single, five-year term ends in May.
“It’s our government’s destiny” to pursue dialogue with the North, Mr. Moon told reporters last week, referring to his efforts to build peace through his three meetings with Mr. Kim in 2018 and his efforts to help arrange the summit meetings between Mr. Kim and Mr. Trump.
This week, Mr. Kim also offered conciliatory words toward South Korea.
“We have neither aim nor reason to provoke South Korea and no idea to harm it,” he said.
North Korea was wooing South Korea while shunning talks with Washington, said Cheong Seong-chang, director of the Center for North Korean Studies at the Sejong Institute in South Korea. Other analysts said North Korea was leaning on South Korea to help bring Washington to dialogue.
On Thursday, Sung Kim, the U.S. special representative for North Korea, met with his counterparts from Japan and South Korea and indicated that Washington would support humanitarian aid to North Korea as an incentive for dialogue.
Analysis doubted that it would be enough.
“I am not sure that the old way of providing humanitarian shipments as an incentive will work this time, given the North’s reluctance to accept outside help during the pandemic,” said Professor Yang of the University of North Korean Studies. “North Korea wants the United States to address more fundamental issues concerning its well-being. It wants clearer commitments from the United States to easing sanctions and guaranteeing its security.”
Then came the Delta variant. Despite keeping their countries largely sealed off, the virus found its way in. And when it did, it spread quickly. In the summer, South Korea battled its worst wave of infections; hospitals in Indonesia ran out of oxygen and beds; and in Thailand, health care workers had to turn away patients.
With cases surging, countries quickly shifted their vaccination approach.
Sydney, Australia, announced a lockdown in June after an unvaccinated limousine driver caught the Delta variant from an American aircrew. Then, Prime Minister Scott Morrison, who had previously said vaccination “was not a race,” called in July on Australians to “go for gold” in the country’s inoculation drive.
The State of Vaccine Mandates in the U.S.
Vaccine rules.On Aug. 23, the F.D.A. granted full approval to Pfizer-BioNTech’s coronavirus vaccine for people 16 and up, paving the way for mandates in both the public and private sectors. Such mandates are legally allowed and have been upheld in court challenges.
College and universities. More than 400 colleges and universities are requiring students to be vaccinated against Covid-19. Almost all are in states that voted for President Biden.
Schools. California became the first state to issue a vaccine mandate for all educators in public and private schools. New York City has also introduced a vaccine mandate for teachers and staff, but it has yet to take effect because of legal challenges. On Sept. 27, a federal appeals panel reversed a decision that temporarily paused that mandate. it. Los Angeles has mandated vaccines for students 12 and older who are attending class in person.
Hospitals and medical centers. Many hospitals and major health systems are requiring employees to get vaccinated. Mandates for health care workers in California and New York State appear to have compelled thousands of holdouts to receive shots.
New York City. Proof of vaccination is required of workers and customers for indoor dining, gyms, performances and other indoor situations. City education staff and hospital workers must also get a vaccine.
At the federal level. On Sept. 9,President Biden announced a vaccine mandate for the vast majority of federal workers. This mandate will apply to employees of the executive branch, including the White House and all federal agencies and members of the armed services.
In the private sector. Mr. Biden has mandated that all companies with more than 100 workers require vaccination or weekly testing, helping propel new corporate vaccination policies. Some companies, like United Airlines and Tyson Foods, had mandates in place before Mr. Biden’s announcement.
He moved to overcome a supply shortage, compounded by the slow regulatory approval. In August, Australia bought one million Pfizer doses from Poland; this month, Mr. Morrison announced a purchase of a million Moderna shots from Europe.
When the Delta outbreak emerged, fewer than 25 percent of Australians over the age of 16 had received a single shot. In the state of New South Wales, which includes Sydney, 86 percent of the adult population has now received a first dose, and 62 percent of adults are fully vaccinated. The country expects to fully inoculate 80 percent of its population over the age of 16 by early November.
“There was great community leadership — there were people from across the political divide who came out to support vaccination,” said Greg Dore, an infectious-disease expert at the University of New South Wales. “It really helped us turn around a level of hesitancy that was there.”
Many governments have used incentives to encourage inoculations.
In South Korea, the authorities eased restrictions in August on private gatherings for fully vaccinated people, allowing them to meet in larger groups while maintaining stricter curbs for others. Singapore, which has fully vaccinated 82 percent of its population, previously announced similar measures.
Researchers there have also analyzed the pockets of people who refuse to be inoculated and are trying to persuade them.
VILNIUS, Lithuania — It was never a secret that China tightly controls what its people can read and write on their cellphones. But it came as a shock to officials in Lithuania when they discovered that a popular Chinese-made handset sold in the Baltic nation had a hidden though dormant feature: a censorship registry of 449 terms banned by the Chinese Communist Party.
Lithuania’s government swiftly advised officials using the phones to dump them, enraging China — and not for the first time. Lithuania has also embraced Taiwan, a vibrant democracy that Beijing regards as a renegade province, and pulled out of a Chinese-led regional forum that it scorned as divisive for the European Union.
Furious, Beijing has recalled its ambassador, halted trips by a Chinese cargo train into the country and made it nearly impossible for many Lithuanian exporters to sell their goods in China. Chinese state media has assailed Lithuania, mocked its diminutive size and accused it of being the “anti-China vanguard” in Europe.
In the battlefield of geopolitics, Lithuania versus China is hardly a fair fight — a tiny Baltic nation with fewer than 3 million people against a rising superpower with 1.4 billion. Lithuania’s military has no tanks or fighter jets, and its economy is 270 times smaller than China’s.
met with Secretary of State Antony Blinken, who pledged “ironclad U.S. support for Lithuania in the face of attempted coercion from the People’s Republic of China.”
European Council on Foreign Relations indicate that most Europeans don’t want a new Cold War between the United States and China. But they also show growing wariness of China.
“There is a general shift in mood,” said Frank Juris, a researcher at the Estonian Foreign Policy Institute who tracks Chinese activities in Europe. “Promises have not materialized and countries are tired of being constantly threatened with the whip.”
That whip is now being brought down hard on Lithuania, a member of the European Union and also NATO.
Particularly galling for Beijing was Lithuania’s announcement in July that it had accepted a request by Taiwan to open a “Taiwanese representative office” in Vilnius.
by Lithuania’s Defense Ministry Cyber Security Center was yet another provocation. The hidden registry found by the center allows for the detection and censorship of phrases like “student movement,” “Taiwan independence,” and “dictatorship.”
The blacklist, which updates automatically to reflect the Communist Party’s evolving concerns, lies dormant in phones exported to Europe but, according to the cyber center, the disabled censorship tool can be activated with the flick of a switch in China.
The registry “is shocking and very concerning,” said Margiris Abukevicius, a deputy defense minister responsible for cybersecurity.
The maker of the Chinese phones in question, Xiaomi, says its devices “do not censor communications.”
In addition to telling government offices to dump the phones, Mr. Abukevicius said in an interview that ordinary users should decide “their own appetite for risk.”
The Global Times, a nationalist news outlet controlled by the Chinese Communist Party, derided the Lithuanian report as a “new trick” by a small “pawn” in Washington’s anti-China agenda.
China has steadily ramped up pressure on Lithuania, last month recalling its ambassador from Vilnius and urging Lithuania’s envoy in Beijing to go home, which she did. It halted a regular cargo train to Lithuania, though it still lets other trains transit through the Baltic country filled with Chinese goods destined for Germany.
While not announcing any formal sanctions, China has added red tape to block Lithuanian exporters from selling goods in China.
Lithuania’s economy minister, Ausrine Armonaite, downplayed the damage, noting Lithuania’s exports to China accounted for only 1 percent of total exports. Losing that, she said, “is not too harmful.”
A bigger blow, according to business leaders, has been the disruption in the supply of Chinese-made glass, electronic components and other items needed by Lithuanian manufacturers. Around a dozen companies that rely on goods from China last week received nearly identical letters from Chinese suppliers claiming that power cuts had made it difficult fulfill orders.
“They are very creative,” said Vidmantas Janulevicius, the president of the Lithuanian Confederation of Industrialists, noting that the delays were “targeted very precisely.”
Lithuania has made “a clear geopolitical decision” to side decisively with the United States, a longtime ally, and other democracies, said Laurynas Kasciunas, the chairman of the national security and defense committee. “Everyone here agrees on this. We are all very anti-communist Chinese. It is in our DNA.”
Tomas Dapkus in Vilnius, Monika Pronczuk in Brussels, and Claire Fu contributed reporting
TOKYO — With the world’s oldest population, rapidly declining births, gargantuan public debt and increasingly damaging natural disasters fueled by climate change, Japan faces deep-rooted challenges that the longstanding governing party has failed to tackle.
Yet in choosing a new prime minister on Wednesday, the Liberal Democratic Party elected the candidate least likely to offer bold solutions.
The party’s elite power brokers chose Fumio Kishida, 64, a stalwart moderate, in a runoff election for the leadership, seeming to disregard the public’s preference for a maverick challenger. In doing so, they anointed a politician with little to distinguish him from the unpopular departing leader, Yoshihide Suga, or his predecessor, Shinzo Abe, Japan’s longest-serving prime minister.
Elders in the party, which has had a near monopoly on power in the decades since World War II, made their choice confident that, with a weak political opposition and low voter turnout, they would face little chance of losing a general election later this year. So, largely insulated from voter pressure, they opted for a predictable former foreign minister who has learned to control any impulse to stray from the mainstream party platform.
slowly emerges from six months of pandemic restrictions that have battered the economy.
Taro Kono, an outspoken nonconformist whose common touch has made him popular with the public and with rank-and-file party members. Mr. Kishida prevailed in the second round of voting, in which ballots cast by members of Parliament held greater weight than ballots cast by other party members.
He will become prime minister when Parliament holds a special session next week, and will then lead the party into the general election, which must be held by November.
In his victory speech on Wednesday, Mr. Kishida acknowledged the challenges he faces. “We have mountains of important issues that lie ahead in Japan’s future,” he said.
They loom both at home and abroad. Mr. Kishida faces mounting tensions in the region as China has grown increasingly aggressive and North Korea has started testing ballistic missiles again. Taiwan is seeking membership in a multilateral trade pact that Japan helped negotiate, and Mr. Kishida may have to help finesse a decision on how to accept the self-governed island into the group without angering China.
As a former foreign minister, Mr. Kishida may have an easier time managing his international portfolio. Most analysts expect that he will maintain a strong relationship with the United States and continue to build on alliances with Australia and India to create a bulwark against China.
But on the domestic front, he is mostly offering a continuation of Mr. Abe’s economic policies, which have failed to cure the country’s stagnation. Income inequality is rising as fewer workers benefit from Japan’s vaunted system of lifetime employment — a reality reflected in Mr. Kishida’s campaign promise of a “new capitalism” that encourages companies to share more profits with middle-class workers.
close to 60 percent of the public is now inoculated. But Mr. Kishida has offered few concrete policies to address other issues like aging, population decline or climate change.
In a magazine questionnaire, he said that he needed “scientific verification” that human activities were causing global warming, saying, “I think that’s the case to some extent.”
Given the enduring power of the right flank of the Liberal Democratic Party, despite its minority standing in the party, Mr. Kishida closed what daylight he had with these power brokers during the campaign.
He had previously gained a reputation as being more dovish than the influential right wing led by Mr. Abe, but during the leadership race, he expressed a hawkish stance toward China. As a parliamentary representative from Hiroshima, Mr. Kishida has opposed nuclear weapons, but he has made clear his support for restarting Japan’s nuclear power plants, which have been idled since the triple meltdown in Fukushima 10 years ago.
And he toned down his support for overhauling a law requiring married couples to share a surname for legal purposes and declared that he would not endorse same-sex marriage, going against public sentiment but hewing to the views of the party’s conservative elite.
“I think Kishida knows how he won, and it was not by appealing to the general public, it was not by running as a liberal, but courting support to his right,” said Tobias Harris, a senior fellow at the Center for American Progress in Washington. “So what that’s going to mean for the composition of his cabinet and his priorities, and what his party’s platform ends up looking like, means he could end up being pulled in a few different directions.”
resigned last fall because of ill health. He had led the party for eight consecutive years, a remarkable stint given Japan’s history of revolving-door prime ministers. When he stepped down, the party chose Mr. Suga, who had served as Mr. Abe’s chief cabinet secretary, to extend his boss’s legacy.
Sanae Takaichi — a hard-line conservative who was seeking to become Japan’s first female prime minister — to revitalize his base in the party’s far right, analysts and other lawmakers said he helped steer support to Mr. Kishida in the runoff.
As a result, Mr. Kishida may end up beholden to his predecessor.
“Kishida cannot go against what Abe wants,” said Shigeru Ishiba, a former defense minister who challenged Mr. Abe for the party leadership twice and withdrew from running in the leadership election this month to support Mr. Kono.
“I am not sure I would use the word ‘puppet,’ but maybe he is a puppet?” Mr. Ishiba added. “What is clear is he depends on Abe’s influence.”
During the campaign for the party leadership, Mr. Kishida appeared to acknowledge some dissatisfaction with the Abe era with his talk of a “new capitalism.” In doing so, he followed a familiar template within the Liberal Democratic Party, which has been adept at adopting policies first introduced by the opposition in order to keep voters assuaged.
“That’s one of the reasons why they have maintained such longevity as a party,” said Saori N. Katada, a professor of international relations at the University of Southern California. “Kishida is definitely taking that card and running with it.”
Makiko Inoue, Hikari Hida and Hisako Ueno contributed reporting.
HONG KONG — Xu Jiayin was China’s richest man, a symbol of the country’s economic rise who helped transform poverty-stricken villages into urbanized metropolises for the fledgling middle class. As his company, China Evergrande Group, became one of the country’s largest property developers, he amassed the trappings of the elite, with trips to Paris to taste rare French wines, a million-dollar yacht, private jets and access to some of the most powerful people in Beijing.
“All I have and all that Evergrande Group has achieved were endowed by the party, the state and the whole society,” Mr. Xu said in a 2018 speech thanking the Chinese Communist Party for his success.
China is threatening to take it all away.
The debt that powered the country’s breakneck growth for decades is now jeopardizing the economy — and the government is changing the rules. Beijing has signaled that it will no longer tolerate the strategy of borrowing to fuel business expansion that turned Mr. Xu and his company into a real estate powerhouse, pushing Evergrande to the precipice.
Last week, the company, which has unpaid bills totaling more than $300 billion, missed a key payment to foreign investors. That sent the world into a panic over whether China was facing its own so-called Lehman moment, a reference to the 2008 collapse of the Lehman Brothers investment bank that led to the global financial crisis.
struggles have exposed the flaws of the Chinese financial system — unrestrained borrowing, expansion and corruption. The company’s crisis is testing the resolve of Chinese leaders’ efforts to reform as they chart a new course for the country’s economy.
If they save Evergrande, they risk sending a message that some companies are still too big to fail. If they don’t, as many as 1.6 million home buyers waiting for unfinished apartments and hundreds of small businesses, creditors and banks may lose their money.
“This is the beginning of the end of China’s growth model as we know it,” said Leland Miller, the chief executive officer of the consulting firm China Beige Book. “The term ‘paradigm shift’ is always overused, so people tend to ignore it. But that’s a good way of describing what’s happening right now.”
speech accepting an award for his charitable donations.
He went to college and then spent a decade working at a steel mill. He started Evergrande in 1996 in Shenzhen, a special economic zone where the Chinese leader Deng Xiaoping launched the country’s experiment with capitalism. As China urbanized, Evergrande expanded beyond Shenzhen, across the country.
Evergrande lured new home buyers by selling them on more than just the tiny apartment they would get in a huge complex with dozens of identical towers. New Evergrande customers were buying into the lifestyle associated with names like Cloud Lake Royal Garden and Riverside Mansion.
annual report was Wen Jiahong, the brother of China’s vice premier, Wen Jiabao, who oversaw the country’s banks as head of the Central Financial Work Commission.
elite group of political advisers known as the Chinese People’s Political Consultative Conference.
“He could not have gotten so big without the collaboration of the country’s biggest banks,” Victor Shih, a professor of political science at the University of California, San Diego, said of Mr. Xu. “That suggests the potential help of senior officials with a lot of influence.”
Mr. Xu was also a power broker who socialized with the Communist Party’s elite families, according to a memoir by Desmond Shum, a well-connected businessman. In his book, “Red Roulette,” published this month, Mr. Shum recounts a 2011 European wine-tasting and shopping spree in which Mr. Xu took part, along with the daughter of the Communist Party’s fourth-ranking official at the time, Jia Qinglin, and her investor husband.
The party flew to Europe on a private jet, with the men playing a popular Chinese card game called “fight the landlord.” At Pavillon Ledoyen, a Paris restaurant, the party spent more than $100,000 on a wine spree, downing magnums of Château Lafite wines, starting with a vintage 1900 and ending with a 1990. On a trip to the French Riviera, Mr. Xu considered buying a $100 million yacht owned by a Hong Kong mogul, Mr. Shum wrote.
To supercharge Evergrande’s growth, Mr. Xu often borrowed twice on each piece of land that he developed — first from the bank and then from home buyers who were sometimes willing to pay 100 percent of the value of their future home before it was built.
property grew to account for as much as one-third of China’s economic growth. Evergrande built more than a thousand developments in hundreds of cities and created more than 3.3 million jobs a year.
cool down, the damage caused by Evergrande’s voracious appetite for debt became impossible to ignore. There are nearly 800 unfinished Evergrande projects in more than 200 cities across China. Employees, contractors and home buyers have held protests to demand their money. Many fear they will become unwitting victims in China’s debt-reform campaign.
Yong Jushang, a contractor from Changsha in central China, still hasn’t been paid for the $460,000 of materials and work he provided for an Evergrande project that was completed in May. Desperate not to lose his workers and business partners, he threatened to block the roads around the development this month until the money was paid.
“It’s not a small amount for us,” Mr. Yong said. “This could bankrupt us.”
Mr. Yong and others like him are at the heart of regulators’ biggest challenge in dealing with Evergrande. If Beijing tries to make an example out of Evergrande by letting it collapse, the wealth of millions of people could vanish along with Mr. Xu’s empire.
protested on the streets and complained online about delays in construction. The central bank has put Evergrande on notice.
And China’s increasingly nationalistic commentators are calling for the company’s demise. Debt-saddled corporate giants like Evergrande were given the freedom to “open their bloody mouths and devour the wealth of our country and our people until they are too big to fall,” Li Guangman, a retired newspaper editor whose recent views have been given a platform by official state media, wrote in an essay.
Without proper intervention, Mr. Li argued, “China’s economy and society will be set on the crater of the volcano where all may be ignited any time.”
Michael Forsythe reported from New York. Matt Phillips contributed reporting from New York.
preliminary official results reported early Monday.
The federal German election agency posted the results at 4:30 a.m. local time.
The close outcome means the Social Democrats, with only 25.7 percent of the vote, must team up with other parties to form a government. And in the complex equation that can be required in Germany to form a government, it is possible that if the winning party fails to get others on board, the party that placed second could wind up leading the country.
It could take weeks if not months of haggling to form a coalition, leaving Europe’s biggest democracy suspended in a kind of limbo at a critical moment when the continent is still struggling to recover from the pandemic and France — Germany’s partner at the core of Europe — faces divisive elections of its own next spring.
Sunday’s election signaled the end of an era for Germany and for Europe. For over a decade, Ms. Merkel was not just chancellor of Germany but effectively the leader of Europe. She steered her country and the continent through successive crises and in the process helped Germany become Europe’s leading power for the first time since World War II.
Cheers erupted at the Social Democratic Party’s headquarters when the exit polls were announced early Sunday evening. A short while later, supporters clapped and chanted “Olaf! Olaf!” as Olaf Scholz, their candidate, took the stage to address the crowd.
“People checked the box for the S.P.D. because they want there to be a change of government in this country and because they want the next chancellor to be called Olaf Scholz,” he said.
The campaign proved to be the most volatile in decades. Armin Laschet, the candidate of Ms. Merkel’s Christian Democrats, was long seen as the front-runner until a series of blunders compounded by his own unpopularity eroded his party’s lead. Olaf Scholz, the Social Democratic candidate, was counted out altogether before his steady persona led his party to a spectacular 10-point comeback. And the Greens, who briefly led the polls early on, fell short of expectations but recorded their best result ever.
The Christian Democrats’ share of the vote collapsed with only 24.1 percent of the vote, heading toward the worst showing in their history. For the first time, three parties will be needed to form a coalition — and both main parties are planning to hold competing talks to do so.
Nevertheless, Mr. Laschet appeared at his party headquarters an hour after the polls closed, declaring the outcome “unclear” and vowing to try to form a government even if his party came in second.
The progressive, environmentalist Greens appeared to make significant gains since the 2017 election but seemed to fall short of having a viable shot at the chancellery. That positions the Greens, as well as the business-friendly Free Democrats, to join the next government. They will play a key role in deciding what the next German government could look like, depending on which of the larger parties they would like to govern with.
On the outer edge of the political spectrum, support for the far-right Alternative for Germany, or AfD, appeared roughly unchanged, while the Left party appeared to be hovering on the 5 percent threshold needed to win seats in Parliament.
In mid-October the election agency will present the official final results.
BERLIN — What do a traffic light, the Jamaican flag and a kiwi have in common?
Those watching German politics closely will know all three are nicknames for potential governing coalitions.
In the weeks following the election, the parties will try to form a coalition government that has a majority in the German Parliament. The winning party in the election will have the first chance to try to form that coalition, but if it doesn’t succeed the chance goes to the runner up.
For the first time since the founding of the federal republic 72 years ago, it looks as though it will take at least three parties to form a stable government.
Here’s how things might play out:
Traffic Light Coalition 🚦: This could be the most likely combination. Its name derives from the parties that would be included, the Social Democrats (red), the free market liberal Free Democrats (yellow) and the Greens (uh, green).
Jamaica Coalition 🇯🇲: If Chancellor Angela Merkel’s conservative Christian Democratic Union (black) should take the lead, Germany might be looking at a Jamaica coalition — named after the black, green and yellow of the Jamaican flag. That bloc would consist of the conservatives, the Greens and the Free Democrats.
And the kiwi 🥝? That would be a duo of the conservatives and the Greens, who have worked together in several state governments, but on current polling are unlikely to command a national majority.
Given the relatively low polling of the once-mighty Christian Democrats and Social Democrats, the topic of possible coalitions has dominated news coverage for weeks in Germany. For the past five years, the two big parties have governed Germany together in a “Grand Coalition,” but they don’t want to repeat that and it might not have a majority in any case.
The Social Democrats and the Greens have governed Germany together before — a prosaically named “Red-Green coalition” was in power from 1997 until 2005 — and have signaled their willingness to work together again. But this time they are not expected to win the seats necessary to get a majority on their own.
Seeing their popularity slip, Merkel’s conservatives and much of the conservative media have warned that an ascendant Social Democrats would turn to the far-left party, Die Linke, to round out their numbers.
They call it the “Elephant Round”: After the polls close and as the votes are being counted on Sunday, all of the heavy-hitting party leaders sit down together, live on public television, to discuss the outcome that is shaping up.
Those who are winning will exclaim, those who are losing will explain and smaller parties will jockey for position in a new government, cozying up to potential partners or coolly shunning others.
For Germans watching at home, the event, which is scheduled to start at 8:15, is a chance to read the tea leaves about their future government.
For the politicians sitting in the brightly lit studio, the round offers them a chance to try to set the tone for the weeks of negotiations that are expected to follow, given that none of the parties running are expected to win enough votes to allow them to govern alone. Leaders of the smaller parties use the opportunity to make their first demands and draw their lines in the sand.
It is a chance for grandstanding and, occasionally, for grinning. That happened famously in 2005, when Chancellor Gerhard Schröder’s Social Democrats lost by a small margin to Angela Merkel’s Christian Democratic Union. He nevertheless tried to claim victory, on grounds that his party had done much better than predicted in the polls. “We’ve won,” Ms. Merkel replied with a controlled smile. “And after a couple of days of reflection, the Social Democrats will realize that, too.”
This year, fate may be in the favor of the Social Democrats. Ms. Merkel is stepping aside after 16 years in power and Olaf Scholz, her vice chancellor and finance minister, led the polls in the final weeks of the race. His campaign portrayed him as coolheaded and in control. Come Sunday night, Germans will be watching to see whether he can keep that up when faced with the “elephants.”
In Germany, political parties name their candidates for chancellor before campaigning begins, and most of the focus falls on the selections who have a realistic chance of winning.
Traditionally, those have been the candidates of the center-right Christian Democrats (Chancellor Angela Merkel’s party) and those of the center-left Social Democrats. For the first time this year, the candidate for the environmentalist Greens is viewed as having a real shot at the chancellery.
Here are the leading hopefuls:
Current position: Co-leader of the Green Party
About her: Ms. Baerbock aims to shake up the status quo. She is challenging Germans to deal with the crises that Ms. Merkel has left largely unattended: decarbonizing the powerful automobile sector; weaning the country off coal; and rethinking trade relationships with strategic competitors like China and Russia.
“This election is not just about what happens in the next four years, it’s about our future,” Ms. Baerbock told a crowd in Bochum, a western German town, this summer.
Ms. Baerbock, who has not a position in government, has started off on a promising note, but her campaign has struggled as she has been a frequent target of disinformation efforts. She has also been accused by rivals of plagiarism and of padding her résumé, and her Green Party has been faulted for not being able to capitalize on environmental issues in the wake of flooding this summer.
Even so, there is almost no combination of parties imaginable in the next coalition government that does not include the Greens. That makes Ms. Baerbock, her ideas and her party of central importance to Germany’s future.
“We need change to preserve what we love and cherish,” she told the crowd in Bochum. “Change requires courage, and change is on the ballot on Sept. 26.”
Current position: Leader of the Christian Democratic Union; governor of the state of North Rhine-Westphalia
About him: Mr. Laschet has run North Rhine-Westphalia, Germany’s most populous state, since 2017 — a credential he has long said qualifies him to run the country. As the leader of the Christian Democratic Union, Ms. Merkel’s party, he should have been the natural heir to the chancellor. But his gaffe-prone campaign has struggled to find traction among Germans. Extraordinary flooding this summer in the region he runs exposed flaws in his environmental policies and disaster management. He was caught on camera laughing during a solemn ceremony for flood victims.
But Mr. Laschet is known for comebacks, and for surviving blunders.
Among his influences is his faith. At a time when more and more Germans are quitting the Roman Catholic Church, Mr. Laschet is a proud member. Another influence is Aachen, Germany’s westernmost city, where he was born and raised. Growing up in a place with deep ties to Belgium and the Netherlands, Mr. Laschet has been integrated into the larger European ideal all of his life.
Current position: Vice chancellor of Germany and federal finance minister
About him: When Olaf Scholz asked his fellow Social Democrats to nominate him as their candidate for chancellor, some inside his own camp publicly wondered if the party should bother fielding a candidate at all. What a difference a few months make. Today, Mr. Scholz and his once moribund party have unexpectedly become the favorites to lead the next government.
During the campaign, Mr. Scholz has managed to turn what has long been the main liability for his party — co-governing as junior partners of Ms. Merkel’s conservatives — into his main asset: In an election with no incumbent, he has styled himself as the incumbent — or as the closest thing there is to Ms. Merkel.
“Germans aren’t a very change-friendly people, and the departure of Angela Merkel is basically enough change for them,” said Christiane Hoffmann, a prominent political observer and journalist. “They’re most likely to trust the candidate who promises that the transition is as easy as possible.”
He has been photographed making the chancellor’s hallmark diamond-shaped hand gesture — the “Merkel rhombus” — and used the female form of the German word for chancellor on a campaign poster to convince Germans that he could continue Ms. Merkel’s work even though he is a man.
The symbolism isn’t subtle, but it is working — so well in fact that the chancellor herself has felt compelled to push back on it — most recently in what might be her last speech in the Bundestag.
It has been said that Germans are sometimes so organized that chaos reigns. Germany’s election system is no exception. It is so complex that even many Germans don’t understand it.
Here’s a brief primer.
Are voters choosing a chancellor today?
Not exactly. Unlike in the United States, voters don’t directly elect their head of government. Rather, they vote for representatives in Parliament, who will choose the next chancellor, but only after forming a government. More on that later.
The major parties declare who they would choose for chancellor, so Germans going to the polls today know who they are in effect voting for. This year the candidates most likely to become chancellor are Olaf Scholz of the Social Democrats or Armin Laschet of the Christian Democrats. Annalena Baerbock, a Green, has an outside chance.
Who can vote?
Any German citizen 18 or over. They don’t need to register beforehand.
How are seats in Parliament allocated?
Everyone going to the polls today has two votes. The first vote is for a candidate to be the district’s local representative. The second vote is for a party. Voters can split their votes among parties and often do. For example, a person could cast one vote for a Social Democrat as the local member of Parliament, and a second vote for the Christian Democrats as a party.
Parliament has 598 members, but could wind up with many more because of a quirk in the system. The top vote-getter in every district automatically gets a seat in Parliament. These candidates account for half of the members of Parliament. The remaining seats are allocated according to how many second votes each party receives.
But parties may be allocated additional seats according to a formula designed to ensure that every faction in Parliament has a delegation that accurately reflects its national support. So Parliament could easily wind up with 700 members.
Also: A party that polls less than 5 percent doesn’t get any seats at all.
What happens next?
It is very unlikely that any party will wind up with a majority in Parliament. The party that gets the most votes must then try to form a government by agreeing to a coalition with other parties. That has become mathematically more difficult because of the rise of the far-right Alternative for Germany party and the far-left Linke party.
The mainstream parties have ruled out coalitions with either of those parties because of their extreme positions. But it will be a struggle for the remaining parties to find enough common ground to cobble together a majority. The process could take months.
Voter turnout in Germany— as a measure of thepeople visiting polling stations — was down on Sunday when compared to the last election in 2017, officials said. But the number is misleading. Participation could be extraordinarily high once mail-in ballots are counted.
By 2 p.m., 37 percent of eligible voters had cast ballots in person, election officials said, down from 41 percent during the same period in 2017. But at least 40 percent of Germans were expected to vote by mail because of the coronavirus, potentially pushing turnout above the 76 percent recorded in 2017.
Despite the decrease in in-person voting nationwide, there were long lines at polling stations in Berlin, where voters were also choosing candidates for the local government. Some polling places reportedly ran out of ballots and had trouble getting more because many streets were closed because of the Berlin Marathon, which was expected to attract almost 30,000 participants.
With Chancellor Angela Merkel poised to step down after 16 years in office, the stakes are high. Polls showed a close race between the Social Democrats and the Christian Democratic Union, Ms. Merkel’s party, which could encourage turnout. Voting sites remain open until 6 p.m. local time.
The high number of mail-in ballots is not expected to delay the results in the same way that occurred in the United States presidential elections last year, when close races in some states were not decided for days. German officials will only count mail-in ballots that had arrived by Sunday, and should have a good idea by midnight at the latest of which party prevailed.
The Alternative for Germany, or AfD, which shocked the nation four years ago by becoming the first far-right party to win seats in Parliament since World War II, suffered a slippage in support Sunday but also solidified its status as a permanent force to be reckoned with.
“We are here to stay, and we showed that today,” Tino Chrupalla, co-leader of the party, told party members gathered on the outskirts of Berlin.
Early results showed the party with 11 percent of the votes, down from almost 13 percent in 2017. The AfD is likely to no longer be the largest opposition party in Parliament.
If those results hold in final tallies, that will still give the AfD a sizable delegation in Parliament, and the vote showed that the party has a core constituency even when immigration, its main issue, was not a major topic in the campaign.
At the AfD’s post-election gathering Sunday, activists took comfort in the poor showing by the Christian Democrats, the party of Chancellor Angela Merkel, who compete with the AfD for conservative voters. “The C.D.U. got what they deserved,” said Alexander Gauland, the leader of the AfD delegation in Parliament.
Alternative for Germany held its election party at an event space 45 minutes by subway from central Berlin, perhaps in an effort to discourage counter-demonstrators. Several dozen protesters gathered across the street from the AfD event, holding signs accusing the party of being fascist. But they were probably outnumbered by the police.
As AfD activists ate potato salad and wurst from a buffet, the prevailing view seemed to be that the party’s candidates would have done better if the media and the other parties hadn’t ganged up on them.
“We had to campaign against everyone,” said Daniela Öeynhausen, who appears to have won a seat in the state Parliament of Brandenburg. “It was still an impressive two-digit result considering the unfair attacks.”
Julian Potthast, who said he believed he had won election to a district council in a neighborhood of Berlin, portrayed the party — whose rhetoric has been linked to attacks on immigrants or people perceived as non-Germans — as itself the victim of violence. He said that his vehicle was vandalized and that graffiti was sprayed on his home.
The party was unfairly portrayed as fascist, he complained. But he also conceded the party might have made mistakes, for example in its stance against restrictions to limit the spread of the coronavirus. “It’s not as good as we hoped,” Mr. Potthast said. “We have to look very carefully at why we lost votes.”
Chancellor Angela Merkel will not disappear Sunday night after the votes are counted.
Until a new government is formed, a process that can take several weeks to several months, she will remain in office as head of the acting, or caretaker, government.
Ms. Merkel announced in the fall of 2018 that she would not run again and she gave up leadership of her party, the Christian Democratic Union. After that, her position as chancellor was weakened as members of the C.D.U. jockeyed to replace her. She had hoped to stay out of the election campaign, but as the conservative candidate, Armin Laschet, started to flounder, she made several appearances aimed at bolstering support for him.
Ms. Merkel is expected to try to take a similarly hands-off approach to steering the caretaker government — if world events allow. The last two years of her fourth and final term in office has seen the deadly coronavirus pandemic, what she herself has called “apocalyptic” flooding in western Germany and the chaotic withdrawal from Afghanistan.
Once the new chancellor is sworn in, Ms. Merkel will vacate her office in the imposing concrete building that dominates Berlin’s government district for good.
But, after the last election, in 2017, it took 171 days — or nearly six months — to form a new government, which means she is likely to be around for a while.
What she will do next remains to be seen. In response to that question in repeated interviews, she has said that first and foremost she will take some time off to reflect and reorient herself before making her next move.
“I will take a break and I will think about what really interests me, because in the past 16 years, I haven’t had the time to do that,” she said in July, after receiving an honorary doctorate from Johns Hopkins University.
“Then I will maybe read a bit, and then my eyes might close because I am tired and I will sleep a bit,” she said, with a smile: “And then we’ll see where I emerge.”
BERLIN — German election officials are expecting mail-in ballots to break records in Sunday’s federal election. At least 40 percent and possibly a majority of ballots will arrive by mail, according to Georg Thiel, head of the agency in charge of counting the votes.
Although actual tallies will only be known after polls close, the authorities have seen requests for mail-in ballots grow this year as the pandemic fuels anxiety about crowded polling stations.
Mail-in balloting has been permitted in Germany for more than 60 years. When it was first allowed, in the 1957 election, only 5 percent of voters used the option; during the last federal election in 2017, 29 percent chose to mail in their choice. Vote counters are set up to handle a doubling of that number — nearly 60 percent — this year, Mr. Thiel said.
The postal service in Germany is one of the quickest and most reliable in the world, with letters usually delivered within a day to anywhere in the country. Still, an official warned voters last week that if they wanted their ballot to be counted, it should be in the mail by Thursday; only ballots received by 6 p.m. on Sunday — when polls close — will be tallied.
The populist Alternative for Germany party, segments of which have parroted former President Donald J. Trump’s claims of manipulated mail-in ballots in the U.S., has used slogans like “the mailbox is not a ballot box” to try to dissuade voters from using the option. But those concerns do not appear to have resonated with the electorate.
Sixty million people are eligible to vote in the German national election on Sunday. There won’t be a new government that night, or the next day — it could take the rival parties weeks or even months to settle on a coalition with a parliamentary majority. But the ballots are tallied quickly, and the new shape of Germany’s political landscape is likely to be visible within hours.
Here’s what Election Day will look like, and what to watch for.
8 a.m. local time: Polls opened. Candidates are not allowed to campaign on this day, but some may be seen casting ballots.
6 p.m. (noon Eastern): Polling stations close. Not long after, the first exit polls should be available. These polls can be within percentage points of the final result. But this year, because the race is tight, it could be a few more hours before a clear picture emerges. Mail-in ballots, which have been part of Germany’s voting system since 1957, are expected to play an outsized role given the pandemic, as they did in the U.S. presidential election. Only mail-in ballots received by 6 p.m. Sunday will be counted.
Around 6:15 p.m.: The first projections based on actual counted ballots will be released. These get updated throughout the evening until a fairly clear picture emerges of which party is winning.
8:15 p.m.: The heads of all the major parties meet to discuss successes and failures of their campaigns, and they will signal who they would be willing to work with in a coalition government. This discussion is called the “Elephant Round,” and it lasts an hour.
8 p.m. to midnight: Nearly all votes should be counted.
Early, early morning: The election authorities release something they call the official temporary results. These usually come between 2 a.m. and 3 a.m. — though during the last national election, they didn’t arrive until 5:30 a.m.
During her 16 years as Germany’s chancellor, Angela Merkel has become an international avatar of calm, reason and democratic values for the way she handled crises that included a near financial meltdown of the eurozone, the arrival of more than a million migrants and a pandemic.
Today Germany is an economic colossus, the engine of Europe, enjoying prosperity and near full employment despite the pandemic. But can it last?
That is the question looming as Ms. Merkel prepares to leave the political stage after national elections on Sunday. There are signs that Germany is economically vulnerable, losing competitiveness and unprepared for a future shaped by technology and the rivalry between the United States and China.
During her tenure, economists say, Germany neglected to build world-class digital infrastructure, bungled a hasty exit from nuclear power, and became alarmingly dependent on China as a market for its autos and other exports.
The China question is especially complex. Germany’s strong growth during Ms. Merkel’s tenure was largely a result of trade with China, which she helped promote. But, increasingly, China is becoming a competitor in areas like industrial machinery and electric vehicles.
Economists say that Germany has not invested enough in education and in emerging technologies like artificial intelligence and electric vehicles. Germans pay some of the highest energy prices in the world because Ms. Merkel pushed to close nuclear power plants, without expanding the country’s network of renewable energy sources enough to cover the deficit.
“That is going to come back to haunt Germany in the next 10 years,” said Guntram Wolff, director of Bruegel, a research institute in Brussels.
WÜLFRATH, Germany — Hibaja Maai gave birth three days after arriving in Germany.
She had fled the bombs that destroyed her home in Syria and crossed the black waters of the Mediterranean on a rickety boat with her three young children. In Greece, a doctor urged her to stay put, but she pressed on, through Macedonia, Serbia, Hungary and Austria. Only after she had crossed the border into Bavaria did she relax and almost immediately go into labor.
“It’s a girl,” the doctor said when he handed her the newborn bundle.
There was no question in Ms. Maai’s mind what her daughter’s name would be.
“We are calling her Angela,” she told her husband, who had fled six months earlier and was reunited with his family two days before little Angela’s birth on Feb. 1, 2016.
“Angela Merkel saved our lives,” Ms. Maai said in a recent interview in her new hometown, Wülfrath, in northwestern Germany. “She gave us a roof over our heads, and she gave a future to our children. We love her like a mother.”
Chancellor Angela Merkel is stepping down after her replacement is chosen following Germany’s Sept. 26 election. Her decision to welcome more than a million refugees from Syria, Iraq, Afghanistan and elsewhere in 2015 and 2016 stands as perhaps the most consequential moment of her 16 years in power.
It changed Europe, changed Germany, and above all changed the lives of those seeking refuge, a debt acknowledged by families who named their newborn children after her in gratitude.
The chancellor has no children of her own. But in different corners of Germany, there are now 5- and 6-year-old girls (and some boys) who carry variations of her name — Angela, Angie, Merkel and even Angela Merkel. How many is impossible to say. The New York Times has identified nine, but social workers suggest there could be far more, each of them now calling Germany home.
Never before has the issue of climate change played such a role in a German election.
Though it still remained unclear who will lead Germany, nearly every party pledged to put climate change near the top of the agenda for the next government.
Despite entering office in 2005 with ambitions to reduce carbon emissions, four successive governments under Chancellor Angela Merkel failed to significantly reduce Germany’s carbon footprint. It remains in the top 10 of the world’s most polluting countries, according to the World Bank.
It has been young climate activists who have succeeded in bringing the climate debate to the forefront of Germany’s political discussion. This year, they successfully took the government to court, forcing a 2019 law aimed at bringing the country’s carbon emissions down to nearly zero by 2050 to be reworked with more ambitious and detailed goals to reduce emissions through 2030.
On Friday, people of all ages marched through the center of Berlin, then rallied on the lawn before the Reichstag, where Germany’s Parliament meets. Thousands turned out for similar protests in other cities across the country.
They were joined by Greta Thunberg, the 18-year-old climate activist who started the Fridays for Future protests in Stockholm in 2018 by skipping school as a way of shaming the world into addressing climate change, made a guest appearance at a protest in Berlin. Future Fridays were a staple in Germany until the pandemic hit.
“Yes, we must vote and you must vote, but remember that voting will not be enough,” she told the crowd, urging them to stay motivated and keep up the pressure on politicians.
“We can still turn this around. People are ready for change,” she said. “We demand the change and we are the change.”
BERLIN — In the prelude to Sunday’s federal election, one of the strangest questions faced by Armin Laschet, governor of Germany’s most populous state and one of the front-runners, was what his dragon name would be.
Mr. Laschet, apparently nonplused, exhaled loudly. “No idea,” he answered. “What kind of names do dragons have?”
As the vote neared and the competition to replace Chancellor Angela Merkel increasingly turned on the candidates’ characters, the contenders submitted themselves to an exhaustive schedule of interviews, debates and town hall-style discussions — including some inquiries from children. In fact, many of the most memorable moments were prompted by the younger questioners.
On one program, “Can You Do the Chancellery,” each of the main candidates was given 30 minutes to teach a classroom of 8- to 13-year-olds. During their separate sessions leading the class, candidates answered questions and had to explain complex themes (like global taxation or global warming) on a whiteboard.
Pauline and Romeo, the children who asked Mr. Laschet about dragons, were part of a segment on a late-night talk show. The two, both 11, threw Mr. Laschet no softballs. Among other things, they asked if he was planning on quitting smoking (a question he dodged, though he did offer that he did not inhale) and about a far-right candidate in his party.
When the 10-minute segment aired this month, Mr. Laschet was widely panned for his performance. (Two other candidates, Annalena Baerbock of the Greens and Olaf Scholz of the Social Democrats, survived Pauline and Romeo without making any headlines.)
But Mr. Laschet was not the only one to struggle. Tino Chrupalla, co-chairman of the populist Alternative for Germany party, also had a tough time with a younger interrogator.
In a publicly broadcast interview, Mr. Chrupalla told a teenage reporter called Alexander that his party wanted to see more German poems and songs being taught in classrooms. But when Alexander asked him what his favorite German poem was, Mr. Chrupalla struggled to name one.
Unusually long lines at polling stations on Sunday caused several Berlin voting locations to remain open for hours after the 6 p.m. closing deadline. That extension may add hours to the time it will take Germany to tally the votes.
The culprit seems to have been a combination of higher-than-expected in-person voting, missing or wrong ballots, and a road-blocking marathon that delayed restocking supplies.
Paco Mallia, 18, who looked forward to voting for the first time, turned back when he saw the long line at his polling station in the central neighborhood of Moabit on Sunday morning.
When he returned just before closing time, the line remained long, but an election worker assured Mr. Mallia that he would get to vote.
At other polling stations in the city, handwritten notes informed voters that as long as they stood in line by 6 p.m. they could cast a ballot.
Mr. Mallia decided to stay. “This election is kind of a big deal for me,” he said.
Although delays were reported in other jurisdictions, Berlin — where residents also voted in state and local elections — seems to have been hardest hit.
Dirk Behrendt, a Green Party city official, demanded an investigation into the delays.
“The government can place them under watch and pressure them through their employers or relatives not to make trouble,” said Minxin Pei, a professor of government at Claremont McKenna College who is writing a study of China’s domestic security apparatus.
China has a lot riding on its ability to contain the fallout from an Evergrande collapse. After Xi Jinping, China’s most powerful leader in generations, began his second term in 2017, he identified reining in financial risk as one of the “great battles” for his administration. As he approaches a likely third term in power that would start next year, it could be politically damaging if his government were to mismanage Evergrande.
But China’s problem may be that it controls financial panics too well. Economists inside and outside the country argue that its safeguards have coddled Chinese investors, leaving them too willing to lend money to large companies with weak prospects for repaying it. Over the longer term, though, China’s bigger risk may be that it follows in the footsteps of Japan, which saw years of economic stagnation under the weight of huge debt and slow, unproductive companies.
By not forcefully signaling an Evergrande bailout, the Chinese government is essentially trying to force both investors and Chinese companies to stop channeling money to risky, heavily indebted companies. Yet that approach carries risks, especially if a disorderly collapse upsets China’s legions of home buyers or unnerves potential investors in the property market.
An abrupt default by Evergrande on a wide range of debts “would be a useful catalyst for market discipline, but could also sour both domestic and foreign investor sentiment,” said Eswar Prasad, an economics professor at Cornell University who is a former head of the China division at the International Monetary Fund.
Some global investors worry that Evergrande’s problems represent a “Lehman moment,” a reference to the 2008 collapse of the Lehman Brothers investment bank, which heralded the global financial crisis. Evergrande’s collapse, they warn, could expose other debt problems in China and hit foreign investors, who hold considerable amounts of Evergrande debt, and other property developers in the country.