Dramatic struggle to find a way out of the German government crisis
Published: Tuesday, Nov 5th 2024, 17:10
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The SPD, Greens and FDP are struggling to find a way out of the serious coalition crisis. A meeting of the "traffic light" leaders on Wednesday evening could be about the continued existence of the governing alliance.
In view of the economic downturn in Germany, the course of economic and financial policy in particular is controversial. In addition, gaps in the federal budget for the coming year worth billions still need to be closed. The search for ways out of the crisis was accompanied by mutual accusations from the partners in the coalition. Federal Chancellor Olaf Scholz (SPD) believes it is still possible to agree on common positions.
Ahead of the coalition committee on Wednesday evening with the leaders of the "traffic light" parliamentary groups and parties, two further meetings between Scholz, Vice-Chancellor and Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) and state secretaries are planned for the morning and afternoon, according to information from coalition circles obtained by Deutsche Presse-Agentur in Berlin. Scholz, Lindner and Habeck could agree on a paper to be discussed by the coalition committee. If this does not succeed, the traffic light coalition could be on the brink of collapse.
FDP politicians made it clear that they expect Lindner's proposed measures for an "economic turnaround" to be implemented. The paper calls for immediate measures such as the permanent abolition of the solidarity surcharge, including for high earners, an immediate stop to all new regulations and a change of course in climate policy. There is considerable resistance to this from the SPD and the Greens.
The term "traffic light" is derived from the party colors red (SPD), yellow (FDP) and green. The alliance, which has been in government since December 2021, is the first of its kind at national level.
Will the traffic lights fail?
Scholz, Lindner and Habeck met again at the Chancellery on Tuesday morning. The status of the negotiations did not emerge.
Scholz later said at a meeting with Somali President Hassan Sheikh Mohamud in Berlin that the talks on the budget, the economy, labor and industry must focus on "working together". "As far as the situation regarding the government's future work is concerned, it is important that we feel committed to the country, that it is not about ideology," said the Chancellor.
Habeck: Have presented
In the coalition crisis, Habeck now sees the SPD and FDP as having to act to avert a premature end to the alliance. Habeck declared on Monday that he was prepared to use billions of euros in subsidies that become available to plug holes in the budget. "Now, however, I also expect the others to make proposals in their own area and not just - and this is the worst game - always tell the others what they expect from them," Habeck said on ARD's Tagesthemen. He has now presented his proposals.
The Intel Group had postponed the construction of a plant in Magdeburg (Saxony-Anhalt), which Germany wanted to support. State subsidies of 10 billion euros were planned, spread over several years.
Ministry of Finance: Not enough
State Secretary of Finance Katja Hessel wrote on the x platform with regard to Habeck's concession on the Intel billions that it was not about plugging budget holes, about ten billion more or less. "You can't spend money that you don't even have if a project is canceled. There is no play money in the budget for individual parties to shift around at will." The aim is to strengthen growth in Germany.
FDP parliamentary group leader Christian Dürr said that the necessary savings volume in the 2025 budget was in the single-digit billion range. "That is basically manageable."
The so-called adjustment meeting of the Budget Committee is scheduled for November 14. This is a crucial meeting for the 2025 budget, but it could theoretically be postponed. A supplementary budget for the current year must also be approved. Among other things, this is due to billions in additional expenditure for the promotion of renewable energies.
FDP wants a change of direction
FDP parliamentary group leader Dürr called on the traffic light to make a "real change of direction". Lindner had presented a well-calculated paper with measures for an upturn. This has met with great approval in the economy.
Dürr made clear the FDP's expectation that the measures proposed in the Lindner paper will be implemented. "Major reforms also require great strength. The question is whether the coalition is prepared to muster this strength together."
Criticism from the Greens
Speaking on ARD television, Green parliamentary group leader Katharina Dröge called Lindner's paper a "deliberate provocation" against the coalition partners. She also criticized his refusal to relax the debt brake. This had developed into a brake on growth.
In response to the accusation of provocation, Lindner wrote on Platform X that many in business and science found his proposals useful for growth and jobs.
©Keystone/SDA
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