Statement by Federal Chancellor Olaf Scholz in full
Published: Wednesday, Nov 6th 2024, 23:40
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Federal Chancellor Olaf Scholz (SPD) has dismissed Finance Minister Christian Lindner and at the same time announced that he will call for a vote of confidence in the Bundestag on January 15. The statement in full:
"Ladies and gentlemen! I have just asked the Federal President to dismiss the Federal Minister of Finance. I feel compelled to take this step in order to avert damage to our country. We need a government that is capable of taking action and has the strength to make the necessary decisions for our country.
That's what I've been about for the past three years. That is what I am concerned with now. This afternoon, I once again presented my coalition partner, the FDP, with a comprehensive offer with which we can close the gap in the federal budget without plunging our country into chaos. An offer to strengthen Germany in difficult times. An offer that also takes up the FDP's proposals, but at the same time makes it clear that we need greater financial leeway in view of the challenges we are facing together.
My offer comprised four key points. Firstly: We will ensure affordable energy costs and cap the grid fees for our companies. This strengthens Germany as a business location.
Secondly, we are putting together a package that secures jobs in the automotive industry and at the many supplier companies.
Thirdly, we are introducing an investment premium and once again improving the tax write-off options to encourage companies to invest in Germany now.
And fourthly, we are increasing our support for Ukraine, which is facing a difficult winter. After the election in the USA, this sends out a very important signal: we can be relied upon. However, I have to state once again: The Federal Minister of Finance shows no willingness whatsoever to implement this offer for the good of our country in the Federal Government. I no longer want to put our country through this kind of behavior.
Dear fellow citizens, I would have liked to have spared you this difficult decision. Especially in times like these, when uncertainty is growing. Donald Trump has clearly won the presidential election in the USA. I have already congratulated him on this today. As German Chancellor, it goes without saying that I will work well with the future President of the United States. A close transatlantic relationship is particularly important in uncertain times.
It is clear that Germany will have to live up to its responsibilities. And we in Europe must stick together more than ever and continue to invest in our own security and strength. Because the situation is serious. There is war in Europe. Tensions are rising in the Middle East. At the same time, our economy is treading water.
Weak global trade is causing problems for companies. Energy prices as a result of the Russian war of aggression, the cost of modernizing our economy - you have to cope with all of that. My talks with the business community show that Our companies need support, and they need it now. Anyone who refuses to accept a solution or an offer of compromise in such a situation is acting irresponsibly. As Federal Chancellor, I cannot tolerate this.
Over the past three years, I have repeatedly made suggestions on how a coalition of three different parties can reach good compromises. This has often been difficult, sometimes even bordering on my political convictions. But it is my duty as Federal Chancellor to push for pragmatic solutions for the good of the country as a whole. Too often, the necessary compromises were drowned out by publicly staged disputes and loud ideological demands. All too often, Federal Minister Lindner has blocked laws in an irrelevant manner. Too often he has engaged in petty party-political tactics. Too often he has broken my trust. He even unilaterally withdrew from the budget agreement after we had already agreed on it in lengthy negotiations. There is no basis of trust for further cooperation. Serious government work is not possible like this.
Anyone who joins a government must act seriously and responsibly. They must not beat about the bushes when things get difficult. They must be prepared to compromise in the interests of all citizens. But that is not what Christian Lindner is about. He is concerned with his own clientele. He is concerned with the short-term survival of his own party. Especially today, one day after such an important event as the elections in America, such selfishness is completely incomprehensible. For far too long, open bickering has obscured the view of what this government has achieved together.
We are making progress on the issue of irregular migration. We were recently able to reduce it by more than 50 percent compared to the previous year. We are making great progress in our commitment to secure energy and climate protection. For the first time, we are on course to actually achieve our expansion targets for wind power and solar energy. Inflation has fallen to 2 percent, real wages and pensions are rising again. We have secured Germany's energy supply and stabilized energy prices. Just a few years ago, almost one in four people had to work in the low-wage sector. Today it is only one in seven.
All of this is good news. The government made up of the SPD, the Greens and the FDP has achieved all of this together. As Federal Chancellor, I have sworn an oath of office. This oath is very important to me. I always keep the welfare of our entire country in mind. My firm conviction is that we must never, ever play internal, external and social security off against each other. That jeopardizes our cohesion. In the end, it even jeopardizes our democracy.
Why am I saying this? Federal Minister Lindner has ultimately and publicly called for a fundamentally different policy. Billions in tax cuts for a few top earners and at the same time pension cuts for all pensioners. That is not fair, it is not just. Tax giveaways with a watering can and a dip into the pockets of our cities and municipalities to finance them. A withdrawal from investments in the climate-friendly modernization of our country: Christian Lindner wants that too. This is stirring up uncertainty in our economy. And it squanders our opportunity to be at the forefront of the technologies of the future. The USA, China and others are not sleeping.
Christian Lindner talks about increasing efficiency reserves in our social security systems in a clichéd way. Behind this, however, are harsh cuts in health and care and less security if someone gets into difficulties. This is disrespectful to all those who have worked hard to achieve this security, to all those who pay taxes and social security contributions.
Politics begins with a consideration of reality. And the reality for Germany is that Russia's war of aggression against Ukraine has profoundly changed the security situation for years to come. We need to invest considerably more in our defense and in the Bundeswehr. Incidentally, right now, after the election results in the USA. 1.2 million Ukrainians have found protection here from Russian bombing terror. That remains the right thing to do. We are supporting Ukraine in its defensive struggle with almost 30 billion euros. We are also doing this because it serves our own security interests.
A Russian victory would cost us much more. Supporting Ukraine is and remains important. And I also say quite clearly: I am not prepared to finance our support for Ukraine and investments in our defense at the expense of social cohesion, at the expense of pensions, health or care. We must have both. Security and cohesion.
That is why I will not give citizens a choice: Either we invest enough in our security or we invest in good jobs, a modern economy and a functioning infrastructure. This either/or is poison. Either security or cohesion. Either support Ukraine or invest in Germany's future: It is wrong and dangerous to make this dichotomy. It is grist to the mill of the enemies of our democracy. Above all, however, this either/or is completely unnecessary. Because Germany is a strong country. Of all the large, economically strong democracies, we have by far the lowest level of debt.
There are solutions for soundly financing our community and its tasks. There are solutions for a budget that strengthens internal, external and social security at the same time. I have proposed one such solution. Article 115 of the Basic Law expressly provides for the adoption of an overspending resolution in an exceptional emergency situation, as the coalition agreed at the end of last year for precisely this case. The Russian war of aggression, which is now in its third year, and all its consequences are such an emergency situation.
But if there is an emergency situation, then the federal government not only has the right to act. Then action is a duty. What happens now? Federal Minister Lindner will be dismissed by the Federal President. I agree with Vice Chancellor Robert Habeck. Germany needs clarity about its future political course quickly.
The regular date for the Bundestag elections next fall is still a long way off. In the remaining weeks of the Bundestag session until Christmas, we will put all bills that cannot be delayed to the vote.
This includes compensating for cold progression so that all employees will have more net income from January 1. This includes stabilizing the statutory pension. This includes the rapid implementation of the rules of the Common European Asylum System. This includes immediate measures for our industry, which I am currently discussing with companies, trade unions and industry associations.
These resolutions should be passed by the last session of the Bundesrat this year, on December 20. In the very first week of the Bundestag session in the new year, I will then put forward the vote of confidence so that the Bundestag can vote on it on January 15. This will allow the members of the Bundestag to decide whether to clear the way for early elections.
These elections could then take place by the end of March at the latest, subject to the deadlines set out in the Basic Law. Ladies and gentlemen, I will now very quickly seek talks with the leader of the opposition, Friedrich Merz. I would like to offer him constructive cooperation on two issues, or even more, which are crucial for our country: The rapid strengthening of our economy and our defense.
Because our economy cannot wait until new elections have taken place. And we need clarity now as to how we can solidly finance our security and defense in the coming years without jeopardizing cohesion in the country. In view of the elections in America, this is perhaps more urgent than ever. It is about making the decision that our country needs now. I will seek to discuss this with the responsible opposition.
Dear fellow citizens, as Chancellor of the Federal Republic of Germany, I will continue to devote all my energy to leading our country through these difficult times. I am confident that with the right decisions, we will emerge stronger from this crisis.
I would like to add a personal comment. I spoke at the beginning about the need to make compromises. We must not lose this ability. Anyone who has looked at the USA in recent weeks has seen a country that is deeply divided. A country where political differences have destroyed friendships and families, where ideology has made cooperation across political boundaries almost impossible. This must not happen to us in Germany. Precisely because we will also have to deal with election results in the future that require cooperation and compromise. This is often difficult, but that is precisely what has made Germany strong. That is what sets us apart, and that is what I am working on as your Federal Chancellor. Thank you very much."
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