Helmut Heinrich Waldemar Schmidt (; 23 December 1918 – 10 November 2015) was a German politician and member of the Social Democratic Party of Germany (SPD), who served as the chancellor of West Germany from 1974 to 1982. He was the longest lived chancellor in German history and had the longest post-chancellorship, at over 33 years.
He was the only chancellor to serve in the Wehrmacht during World War II.
Before becoming chancellor, he served as the minister of defence (1969–1972) and the minister of finance (1972–1974) in the government of Willy Brandt. In the latter role he gained credit for his financial policies. He had also briefly been minister of economics and acting foreign minister.
As chancellor, he focused on international affairs, seeking "political unification of Europe in partnership with the United States". He was an energetic diplomat who sought European co-operation and international economic co-ordination. He was re-elected chancellor in 1976 and 1980, but his coalition fell apart in 1982 with the switch by his coalition allies, the Free Democratic Party.
He retired from Parliament in 1986, after clashing with the SPD's left wing, which opposed him on defence and economic issues. In 1986, he was a leading proponent of the European monetary union and a European Central Bank.
Background, family, early life and education Helmut Schmidt was the elder of two sons to Ludovica Koch (10 November 1890 – 29 November 1968) and Gustav Ludwig Schmidt (18 April 1888 – 26 March 1981) in Barmbek, a working-class district of Hamburg, in 1918. Schmidt studied at Hamburg Lichtwark School, graduating in 1937. Schmidt's father was born the biological son of a German Jewish banker; Ludwig Gumpel, and a Christian waitress, Friederike Wenzel, and then covertly adopted, although this was kept a family secret for many years. This was confirmed publicly by Schmidt in 1984, after Valéry Giscard d'Estaing revealed the fact to journalists, apparently with Schmidt's assent. Helmut Schmidt was a non-practising Protestant.
Schmidt was a group leader (Scharführer) in the Hitler Youth organisation until 1936, when he was demoted and sent on leave because of his anti-Nazi views. However, documents from 1942 praise his "Impeccable national socialist [Nazi] behaviour", and in 1944 his superiors mentioned that Schmidt "stands the ground of national socialist ideology, knowing that he must pass it on." On 27 June 1942, he married his childhood sweetheart Hannelore "Loki" Glaser (3 March 1919 – 21 October 2010). They had two children: Helmut Walter (26 June 1944 – 19 February 1945, died of meningitis), and (born 8 May 1947), who works in London for Bloomberg Television. Schmidt resumed his education in Hamburg after the war, graduating in economics and political science in 1949.
Military service Schmidt had planned to study without interruption. Therefore, he volunteered at age 18 for military service in 1937. He began serving with an anti-aircraft battery of Luftwaffe at Vegesack near Bremen.
In World War II, after brief service on the Eastern Front during the invasion of the Soviet Union in 1941 (including the Siege of Leningrad), he returned to Germany in 1942 to work as a trainer and advisor at the Ministry of Aviation. During his service in World War II, Schmidt was awarded the Iron Cross 2nd Class.
He attended the People's Court as a military spectator at some of the show trials for officers involved in the 20 July plot, in which an unsuccessful attempt was made to assassinate Hitler at Rastenburg, and was disgusted by Judge Roland Freisler's conduct.
Toward the end of the war, from December 1944 onwards, he served as an Oberleutnant in the Flak artillery on the Western Front during the Battle of the Bulge and the Ardennes Offensive. He was captured by the British in April 1945 on Lüneburg Heath, and was a prisoner of war until August of that year in Belgium.The Daily Telegraph, Wednesday 11 November 2015, Obituary [paper only], p. 31 In 1958 Schmidt was promoted to Hauptmann of the Bundeswehr reserve.
Post-World War II
Schmidt joined the Social Democratic Party of Germany (SPD) in 1946, and from 1947 to 1948 was the leader of the Socialist German Student League, the student organisation of the SPD. Upon graduating from the University of Hamburg, where he read economics, he worked for the government of the city-state of Hamburg, working in the department of Economic Policy. Beginning in 1952, under Karl Schiller, he was a senior figure heading up the (the Hamburg State Ministry for Economy and Transport).
He was elected to the Bundestag in 1953, and in 1957 he became a member of the SPD parliamentary party executive. A vocal critic of conservative government policy, his outspoken rhetoric in parliament earned him the nickname ("Schmidt the Lip"). In 1958, he joined the national board of the SPD (), and campaigned against nuclear weapons and the equipping of the Bundeswehr with such devices. He alarmed some in his party by taking part in manoeuvres as a reserve officer in the newly formed Bundeswehr. In 1962, he gave up his seat in parliament to concentrate on his tasks in Hamburg.
Senator The government of the city-state of Hamburg is known as the Senate of Hamburg, and from 1961 to 1965, Schmidt was the : the senator of the interior. He gained a reputation as a – someone who gets things done regardless of obstacles – by his effective management during the emergency caused by the 1962 flood, during which 300 people drowned. Schmidt used all means at his disposal to alleviate the situation, even when that meant overstepping his legal authority, including employing the federal police and army units (ignoring the German constitution's prohibition on using the army for "internal affairs"; a clause excluding disasters was not added until 1968). Describing his actions, Schmidt said, "I wasn't put in charge of these units – I took charge of them!" He saved a further 1,000 lives and swiftly managed the re-housing of thousands of the homeless.
Return to federal politics In 1965, he was re-elected to the Bundestag. In 1967, after the formation of the Grand Coalition between the SPD and the Christian Democratic Union (CDU), he became chairman of the Social Democratic parliamentary party, a post he held until the elections of 1969. In 1968, he was elected deputy party chairman, a post that he held until 1983. Unlike Willy Brandt and Gerhard Schröder, he never became chairman of the party.
In October 1969, he entered the government of Willy Brandt as defence minister. During his term in office, the military conscription time was reduced from 18 to 15 months, while at the same time increasing the number of young men being conscripted. Additionally, Schmidt decided to introduce the Bundeswehr universities Helmut Schmidt University in Hamburg and the University of the Bundeswehr Munich in Neubiberg (Munich district) to broaden the academic education of the German officer corps, and the situation of non-commissioned officers was improved. In July 1972, he succeeded Karl Schiller as Minister for Economics and Finance, but in November 1972, he relinquished the Economics department, which was again made a separate ministry. Schmidt remained Minister of Finance and faced the prospect of rising inflation. Shortly before the Oil Shock of 1973, which rattled Britain and the United States, Schmidt agreed that European currencies should be floated against the US dollar. He remained in charge of finance until May 1974.
Chancellor of West Germany (1974–1982)
Schmidt became Chancellor of West Germany on 16 May 1974, after Brandt's resignation in the wake of an espionage scandal. The worldwide economic recession was the main problem his administration faced, and Schmidt took a tough and disciplined line in the reduction of public spending. Schmidt was also active in improving relations with France. Together with the French President Valéry Giscard d'Estaing, he was one of the fathers of the world economic summits, the first of which assembled in 1975. In 1975, he was a signatory of the Helsinki Accords to create the Conference for Security and Co-operation in Europe, the precursor of today's OSCE. In 1978, he helped set up the European Monetary System (EMS).
He remained as Chancellor after the 1976 federal election, in coalition with the liberal Free Democratic Party (FDP). He adopted a tough, uncompromising line with the indigenous Red Army Faction (RAF) extremists. In October 1977, he ordered an anti-terrorist unit of Bundesgrenzschutz policemen to end the Palestinian terrorist hijacking of a Lufthansa aircraft named Landshut, staged to secure the release of imprisoned RAF leaders, after it landed in Mogadishu, Somalia. Three of the four kidnappers were killed during the assault on the plane, but all 86 passengers and the remaining 4 crew member were rescued unharmed, the captain having been killed by the kidnappers earlier.
Schmidt was re-elected as Chancellor in November 1980. Concerned about the Soviet invasion of Afghanistan, and the Soviet superiority regarding missiles in Central Europe, Schmidt issued proposals resulting in the NATO Double-Track Decision, concerning the deployment of medium-range nuclear missiles in Western Europe, should the Soviets not disarm. This decision was unpopular with the German public. A mass demonstration against the deployment mobilised 400,000 people in October 1981.
At the beginning of his period as chancellor, Schmidt was a proponent of Keynesian economics, and pursued expansionary monetary and fiscal policies during his tenure. Between 1979 and 1982, the Schmidt administration pursued such policies in an effort to reduce unemployment. These were moderately successful, as the fiscal measures introduced after 1977, with reductions in income and wealth taxes and an increase in the medium-term public investment programme, were estimated to have created 160,000 additional jobs in 1978–1979 or 300,000 if additional public sector employment was included in the figure. The small reduction in the unemployment rate, however, was achieved at the cost of a larger budget deficit (which rose from 31.2 billion DM to 75.7 billion DM in 1981), brought about by fiscal expansion.Taxation, Wage Bargaining and Unemployment by Isabela Mares
During the 1970s, West Germany was able to weather the global financial storm far better than almost all the other developed countries, with unemployment and inflation kept at comparatively low levels. During the 1976 election campaign, the SPD/FDP coalition was able to win the battle of statistics, whether the figures related to employees' incomes, strikes, unemployment, growth, or public sector debts. Amongst other social improvements, old age pensions had been doubled between 1969 and 1976, and unemployment benefits increased to 68% of previous earnings.Germany in the Twentieth Century by David Childs