Wolfgang Schaeuble, who helped negotiate German reunification, dies at 81

A mentally disturbed man shot Mr. Schaeuble at an election rally in 1990, just after reunification. Mr. Schaeuble was paralyzed from the waist down and used a wheelchair for the rest of his life.

He returned to work weeks after the shooting and, the following year, was credited with helping sway Germany’s parliament to move the reunited nation’s capital from Bonn to Berlin.

Mr. Schaeuble became Chancellor Angela Merkel’s finance minister in October 2009, just before revelations about Greece’s ballooning budget deficit set off a crisis that engulfed Europe.

A longtime supporter of greater European unity, he helped lead efforts for deeper integration and a stricter rule book. But Germany drew criticism for its emphasis on austerity and a perceived lack of generosity.

After eight years as finance minister, the conservative Mr. Schaeuble cemented his status as an elder statesman by becoming the German parliament’s speaker — the last step in a long front-line political career that saw him overcome daunting setbacks. He died as the country’s longest-serving lawmaker.

Merkel said Mr. Schaeuble was a “political teacher” when she was a young minister in the 1990s and “one of the anchors” of her cabinets. She said she “admired his discipline, including toward himself.”

European Central Bank President Christine Lagarde, who worked with Mr. Schaeuble when she was the French finance minister and later as the head of the International Monetary Fund, said “he was one of the most influential European leaders of his generation.”

From the early days of Europe’s debt crisis, Mr. Schaeuble pushed for tougher rules to keep government deficits under control. Berlin initially held out against bailing out Greece and other debt-laden countries, and critics charged that Germany’s reluctance to move increased the price tag.

Germany stamped its mark on the rescue effort, insisting on tough conditions such as budget cuts in exchange for helping struggling countries and keeping them under pressure to comply. In 2012, Mr. Schaeuble insisted that European countries “are on the right track — in reducing their deficits, in improving their productivity and so their competitiveness.”

“That is the decisive thing, and we cannot spare any country this through supposed generosity or solidarity,” he said. “That is not obstinacy — it is understanding that democratic majorities only make unpleasant decisions when there is no easier alternative.”

When a left-wing Greek government under Prime Minister Alexis Tsipras was elected in 2015 on pledges to scrap the painful spending cuts and tax hikes demanded by creditors, Mr. Schaeuble took a tough line. Later that year, he suggested that Greece could take a five-year “timeout” from the euro, but he fell in line with Merkel’s insistence that a “Grexit” was off the table.

Yanis Varoufakis, who sparred with Mr. Schaeuble as Tsipras’s first finance minister, wrote that “history will judge him harshly, but no more harshly than those who succumbed to his disastrous project and policies.”

Seeking wider financial reform, Mr. Schaeuble pushed with mixed results for a levy on banks to ensure that they pay the costs of future crises, and for an international tax on transactions. He drew criticism for an abrupt and unilateral German ban on some speculative trading practices, which unsettled markets.

In Germany, Mr. Schaeuble took pride in balancing the budget for the first time in decades. Critics largely outside Germany contended that fiscal restraint held back the recovery of the currency union as a whole.

Wolfgang Schaeuble was born Sept. 18, 1942, in Freiburg. He worked as a tax official in his native southwestern state of Baden-Wuerttemberg before winning election to the West German parliament in 1972.

He joined West Germany’s cabinet in 1984, serving as Chancellor Helmut Kohl’s chief of staff for five years before becoming interior minister.

In that job, Mr. Schaeuble was a key West German negotiator as the country headed toward reunification with the communist East Germany after the Nov. 9, 1989, fall of the Berlin Wall. He helped ready the treaty that created the legal framework for reunification on Oct. 3, 1990.

Nine days after reunification, Mr. Schaeuble was shot while campaigning in Oppenau, in southwestern Germany, for the united country’s first election.

An assailant with a history of mental problems fired a shot into Mr. Schaeuble’s spine that left him paralyzed. Another bullet hit his face.

Mr. Schaeuble quickly returned to politics. In 1991, he delivered an impassioned plea to parliament for post-reunification Germany to return to its traditional capital, Berlin. “Deciding for Berlin is a decision to overcome the division of Europe,” he said. Lawmakers narrowly backed the move.

From 1991 to 2000, Mr. Schaeuble led the parliamentary group of the conservative Union bloc, dominated by Kohl’s Christian Democratic Union. He finally became CDU party leader after Kohl’s 16-year stint as chancellor ended in a 1998 election defeat.

However, he resigned in February 2000 after becoming implicated in a party financing scandal surrounding Kohl. Merkel became the CDU leader.

Mr. Schaeuble was later touted as a candidate for Germany’s largely ceremonial presidency, but was passed over as Merkel chose former IMF chief Horst Koehler.

He returned to the cabinet when Merkel became chancellor in 2005 for his second stint as interior minister. Mr. Schaeuble is survived by his wife, Ingeborg, and four children.