“Traffic light” coalition argues about the right German economic policy
Published: Friday, Oct 25th 2024, 15:40
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Germany's economy is in crisis - and the way out is increasingly becoming a contentious issue for the "traffic light" coalition. Above all, they are arguing about the right measures to boost the sluggish economy.
However, two events next Tuesday will also provide an insight into the tense atmosphere within the coalition. After Chancellor Olaf Scholz (SPD) hosted an industry summit, the FDP organized an "economic policy summit" with important association representatives.
Non-coordinated concepts
Federal Finance Minister Christian Lindner criticized on ZDF television that recent economic policy initiatives by Chancellor Scholz and Economics Minister Robert Habeck (Greens) had not been coordinated. The FDP leader called for a quick decision on direction. This will show "whether we can come together as a coalition", he said on ARD television. Clarity must be created this fall "as to which direction this country is heading in terms of economic and financial policy". Otherwise, economic development would continue to suffer.
"No, Mr. Scholz's proposals were not coordinated and neither were Mr. Habeck's," Lindner said on ZDF's "Heute Journal". "We talk to each other, but I don't know these proposals. And that in itself is a problem."
What Lindner did not say was that the FDP executive committee also regularly produces papers on economic policy and other issues that are not agreed with the coalition partners beforehand.
Lindner versus Habeck: "conceptual helplessness"
Habeck had previously proposed boosting the economy with a debt-financed state investment and infrastructure fund. According to his ideas, companies should be reimbursed ten percent of all investments by the state.
Lindner had already questioned the feasibility of Habeck's proposal and has now followed up. "I'm not convinced on the merits," he said. "After we saw that subsidies didn't help with Intel, the failure of Intel is now to be followed by Intel squared." For him, this is a "sign of conceptual helplessness". The German government wanted to subsidize an Intel chip factory in Magdeburg with billions, but its construction has now been postponed.
Two conferences - one topic
Chancellor Scholz announced an industrial policy offensive in the Bundestag last week. He wants to meet with representatives from companies, trade unions and associations at an industry summit in the Chancellery. Measures should be explored "so that we can march forward together", Scholz said on the ZDF program "Maybrit Illner". The meeting is scheduled for Tuesday afternoon. Economics Minister Habeck has not been invited to the summit, but is relaxed about it. "I don't need a summit right now. I am constantly climbing mountains," he said in the Indian capital New Delhi. He is in daily contact with the business associations.
Loyal to the coalition on one condition
In recent months, there has been repeated speculation about a premature end to the coalition due to the many disputes within the "traffic light". On ZDF television, the Finance Minister countered the impression that he already sounded like the opposition. "If everyone wants to stick to the coalition agreement and its spirit, then I certainly have no intention of ending a governing coalition."
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