Two summits and an abyss: will the German “traffic light” turn things around?
Published: Tuesday, Oct 29th 2024, 16:50
العودة إلى البث المباشر
Ahead of the industry summit with German Chancellor Olaf Scholz (SPD), the Liberals have called for "directional decisions" by the "traffic light" government to stimulate the economy in the coming weeks.
FDP party leader and Finance Minister Christian Lindner countered speculation about an imminent end to the coalition following a meeting between his parliamentary group and business representatives, which many saw as a "counter-summit". "There is also such a thing as a government commitment, and it is always better for Germany if a government finds a common direction, describes it and implements it," he said.
There were no concrete results at the FDP meeting with employer boss Rainer Dulger and representatives of small and medium-sized businesses and the skilled trades, nor was it intended to be. Dulger then called on the government to overcome its differences and develop a joint strategy for all economic sectors. "Together - and I emphasize together - it must pursue the right economic policy to make this location competitive again."
Counter-summit in the "club room" of the Reichstag building
The industry summit, which Scholz single-handedly got off the ground two weeks ago without his coalition partners, has caused quite a stir in recent days. The reactions of Lindner and Economics Minister Robert Habeck (Greens) revealed just how deep the rifts in the German coalition government have become. The term "Ampel" is derived from the party colors red (SPD), yellow (FDP) and green (Güne).
Habeck presented an impulse paper in which he called for a fund worth billions for more investment, which is hardly feasible with Lindner and Scholz. Lindner's FDP parliamentary group quickly organized a counter-summit, which took place just five hours before the meeting in the Chancellery diagonally opposite in the "club room" of the Reichstag building. Many in Germany see this as a sign that the governing parties are drifting apart.
Dürr: Germany must return to the "Champions League"
"I believe Germany should play in the Champions League again. That should be our aspiration," said parliamentary group leader Christian Dürr after the one-and-a-half-hour deliberations. Dulger emphasized that the competitiveness of Germany as a business location must once again become the focus of the coalition's political action. "We must now get down to business after the political exhibition run and we must deliver."
The German economy is in crisis; according to forecasts, 2024 will be the second year of recession in a row. Business associations have long been calling for comprehensive structural reforms: lower energy prices, less bureaucracy, measures to combat the shortage of skilled workers, lower social security contributions, more money for the sometimes dilapidated infrastructure. The "traffic light" coalition has announced a "growth initiative" with many measures. However, none of these have yet been implemented and some of them are controversial. Business associations consider the plans to be insufficient.
Scholz wants a "new industrial policy agenda"
At his summit planned for the afternoon, Scholz will focus on sectors in which a particularly large number of jobs are at stake. In addition to the Federation of German Industries (BDI), the German Engineering Federation (VDMA) should also be present. The employees are represented by the German Trade Union Confederation (DGB), IG Metall and IG Bergbau, Chemie, Energie. Among the large companies invited were the major car manufacturers, including VW, where three plant closures are currently under discussion.
Scholz said what his goal is in a government statement in the Bundestag two weeks ago: a "new industrial policy agenda". For the FDP, the Chancellor's approach falls short. It wants a comprehensive strategy for all sectors of the economy.
The budget is the sticking point
One thing is certain: in order to achieve a result, Scholz, Habeck and Lindner will have to come together again. "It is clear that we will have to find a common position in the coming weeks, if only because of the timetable for the 2025 federal budget," said Lindner. When asked about joint consultations with Habeck and Scholz, he only said that he meets with both of them regularly - and will do so again soon.
It is questionable whether the coalition partners will be able to agree on a common economic policy line by the time the budget is decided. On November 14, the Bundestag's budget committee will meet to finalize the budget for the coming year. If the coalition does not agree on how to plug the billions of euros in gaps, it will be on the brink of collapse.
©كيستون/إسدا
Arabic 
English 
German 
French 
Spanish