The most consequential European politician of his generation, Wolfgang Schäuble is the longest-serving member of parliament in the history of Germany, entering the Bundestag for the cdu at the age of thirty in 1972, and now in his twelfth successive legislature, at the age of seventy-four. Within a year of Helmut Kohl’s election as Chancellor in 1983, Schäuble was his chief of staff. Promoted to Minister of the Interior in 1989, he managed the swift absorption of the ddr by the Federal Republic in 1990. Rising to leader of the party in the Bundestag on the strength of this success, when Kohl lost his bid for a fifth term, he became chairman of the national cdu in 1998, poised for his elevation to Chancellor when the party regained power. But in 2000, he was caught in the scandal of cdu slush funds, and had to make way for Angela Merkel in the post. With her election as Chancellor in 2005, he became Minister of the Interior once again, and on her re-election in 2009, Minister of Finance. There he remains today.
Landmarks in this career have given Schäuble a solid reputation, inside and outside Germany, for an unflinching brand of conservatism. The treaty with which he steamrollered the Anschluss of the ddr, ignoring the possibility in the Grundgesetz of a revision of the German constitution, was famously described by Habermas as ‘Herr Schäuble shaking hands with himself’. As Minister of the Interior, he urged acceptance of evidence under torture, mooted targeted assassinations in the battle against terror, covered the cia kidnapping of a German citizen for incarceration in Guantánamo,footnote1 and urged use of the army for internal security operations. Later, he saw little reason to complain of nsa surveillance of his compatriots. His Atlantic solidarity is second to none. Like Merkel, he applauded the invasion of Iraq in 2003, and a decade later declared Putin’s recovery of Crimea a facsimile of Hitler’s seizure of the Sudetenland. Above all, as Minister of Finance, Schäuble has appeared a ruthless enforcer of eu-wide austerity, imposing a draconian neo-liberal orthodoxy in the service of German national egoism, at the expense of smaller and weaker countries in the Union. In 2010, he was the prime mover of the Fiscal Stability Pact that two years later would write budgetary corsets into the constitutions of Eurozone members, and has had no hesitation in attacking the European Central Bank, and the low-interest manipulations of its Italian head, for undermining economic discipline in general and German savings in particular. No other finance minister in the Eurozone could afford to be so outspoken.
Since the generation that lived through the Second World War passed away, the common hallmarks of the European political class have been mediocrity and corruption. In its nondescript ranks, Schäuble stands out. Not as exempt from corruption, in which he was as implicated as any of his peers—the 100,000 deutschmark he was handed by an arms dealer in 1994 still remains unaccounted for—nor as rising to any great mental height. But in strength of character—he was rendered paraplegic by a lunatic in 1990—and, by contemporary German standards, a certain intellectual dimension. In France or Italy, it is still virtually de rigueur for leading politicians, whether on the way up or already well established, to produce a series of books testifying to their wider culture and finer intelligence. Not so in Britain or Germany, where self-serving memoirs of the Schröder or Blair stripe form the nearest, dreary ex post facto equivalent. In the Federal Republic, the days of the prolific and literate Helmut Schmidt, or even Willy Brandt, are long gone. Incapable even of a self-written article, let alone a book, in a dozen years of power Merkel’s only memorable utterance was the vapid reassurance wir schaffen das—‘we can manage’—issued on the arrival of a wave of refugees from the Middle East, and given the lie overnight, sending her scuttling to Turkey to get any more of them safely bottled up under Erdoğan. Schäuble is made of sterner stuff. The six books he has published since the early nineties aim at something more substantial.
Born in 1942, Schäuble comes from Hornberg, a small town (population 4,000) in the Black Forest, roughly midway between Freiburg and Tübingen, where his father held a position as Prokurist, an authorized officer, in a cotton firm converted to arms production during the war, exempting him from military service.footnote2 A founder of the Badische Christlich-Soziale Volkspartei (bcsv) in the post-war period, Karl Schäuble became its chairman in 1946 and entered the Landtag in 1949, where he served until 1952, when Baden was merged with Württemberg, thereafter throwing himself into activities for the cdu in Hornberg.footnote3 Exposure to politics came early to Wolfgang, campaigning for his father at the age of eleven, as to his younger brother Thomas, who would go on to become an Interior Minister in Baden-Württemberg and head of the national domestic policy committee of the cdu. Active in the youth wing of the cdu from the age of nineteen, Wolfgang was chairman of its regional organization in South Baden within a decade, and elected to the Bundestag soon afterwards.
What was Schäuble’s intellectual formation in these years? With a brief intermission studying economics at Hamburg, he took law at the University of Freiburg. Given his later reputation as a rock of neo-liberalism, it would be a reasonable assumption, one that he has taken care not to dispel, that his convictions were formed by the work of the Freiburg School, often identified with ordo-liberalism as the native German counterpart to the Austrian School of economists headed by Mises and Hayek. In fact, however, of the first generation of ordo-liberal thinkers, none remained at Freiburg by the time Schäuble arrived there. Walter Eucken had died in 1950, and Franz Böhm was no longer based there. Though the two are often conflated, other leading lights of ordo-liberalism, Alexander Rüstow, Wilhelm Röpke and Alfred Müller-Armack were never at Freiburg. Tellingly, Schäuble would himself later refer not only to Eucken, but mistakenly to Röpke and Erhard, as ‘pioneers of the Freiburg School’. Though the creation of the journal Ordo by Eucken and Böhm in 1948 contributed to their identification, the two terms were never synonymous—the Freiburg School was a smaller formation within what became ordo-liberalism, one of several anticipating it.
By the time Schäuble was a student at Freiburg in the sixties, it is an open question whether the intellectual climate there was unusually ordo-liberal. This period was the high-point of ordo influence in German academic life generally, when its ideas were widely taught in economics departments as one of the main currents in economic theory. In his memoirs Fritz Rittner, who supervised Schäuble’s dissertation, describes a department of law concerned with many of the issues that preoccupied the ordo-liberals: interdisciplinary studies of legal and economic regulation, competition, and a society based on contracts between private agents enforced by the state, market-conforming interventions to ensure the separation of economic and political spheres, and the like. Broadly admiring of the ordo-liberals—especially Böhm—as theoreticians, Rittner was nevertheless critical of the tradition as insufficiently empirical. Its approaches had varied a lot since the late 1930s: there was no one ‘neo-liberal theory of competition’, rather a political outlook of wider social significance, particularly in the early years of the Federal Republic, when the slogan of a Social Market Economy was popularized.footnote4 Schäuble’s own dissertation, on the professional legal status of auditors, bore few signs of much theoretical reflection.
Within a year of completing his doctorate, Schäuble was planted on the benches of the cdu in the Bundestag, where his career would be closely linked to Helmut Kohl, whom he backed in a failed bid to become chairman of the party in 1971, at a time when the spd was in power under Brandt. When Kohl left his fief in the Rhineland to become leader of the opposition in 1976, assembling a coterie of close advisers around him, the so-called Gruppe 76, Schäuble became a key member of it; and when Kohl toppled the spd in a parliamentary manoeuvre six years later, he was selected by his colleagues to head the cdu fraction in the Bundestag. Soon he was head of the federal chancellery—in effect chief of staff to Kohl—and by the end of the decade in charge of German unification. In 1991, within a year of the attack that left him in a wheelchair—not ‘handicapped’, a term he disdains, but in the blunt local idiom he prefers, a cripple for the rest of his lifefootnote5—he was able to celebrate his achievements in winding up the ddr with his first book, whose title made no secret of his personal triumph in navigating its demise, and restoring the rights of private property in the East as the ‘foundation of a social market economy structured under private law’.footnote6