As of: February 20, 2024, 5:08 p.m
By: Sonja Ruf
Comments
Press
Split
Habeck and Lindner are increasingly falling out over the state of the economy in Germany.
It is said that Chancellor Scholz will probably not speak out in the future either.
Berlin – It is probably well known by now that the three traffic light coalition politicians Robert Habeck (Greens), Christian Lindner (FDP) and Olaf Scholz (SPD) do not have it that easy with each other.
Especially between two people, Habeck and Lindner, there seems to be a bad atmosphere at the moment.
The reason: divergent views on economic policy and major financial challenges ahead.
The initial situation: Economics Minister Habeck recently had to revise the growth forecast for Germany this year from 1.3 to 0.2 percent.
In 2023, the German economy had already shrunk by 0.3 percent.
In addition, the international situation and the associated financial obligations for Germany (keyword: NATO and the two percent target) are currently becoming noticeably more intense.
A weakening economy and the demands of FDP Finance Minister Lindner
The FDP Finance Minister Christian Lindner is calling for an economic turnaround.
Specifically, this can be translated into three demands.
The minister wants more reductions in bureaucracy, targeted control of the immigration of skilled workers and tax cuts for companies and higher earners.
The solidarity surcharge should be eliminated.
Abolishing the solidarity surcharge could cost the federal government an additional twelve billion euros.
Furthermore, the Liberals are having difficulty with what they see as high social spending in the country.
In his speech on political Ash Wednesday, Linder said that for him the “tailwind of Agenda 2010 had worn off”.
For the FDP, for example, the pension at 63 could be abolished and reduced in the area of development cooperation and funding programs of the Federal Ministry for Family Affairs.
The Liberals have so far held back from making further concrete demands, probably for tactical reasons.
Tired faces: The mood between the two ministers was better, see selfi post on Instagram at the beginning of February.
© Imago/dts news agency
Sticking points between Lindner and Habeck: social spending and debt
In order to urgently address the unfortunate economic situation, Habeck introduced the Growth Opportunities Act.
This provides for tax relief for companies and the acceleration of approval procedures, but is currently still stuck in the mediation committee.
What Lindner definitely doesn't want is more debt.
And the verbal exchange of blows with his Green counterpart runs exactly along this line of conflict.
Habeck is calling for a new billion-dollar fund to help the economy.
That would mean: Germany would inevitably incur more debt.
The actual raising of new debts in the federal budget is almost impossible - also because of the momentous ruling by the Federal Constitutional Court in November.
Such a special fund could only be anchored in the Basic Law as a temporary additional budget.
However, the Greens strictly reject cuts in the social sector.
The party's parliamentary group leader, Katharina Dröge, said: "Cuts in social services endanger social cohesion and are economically damaging."
My news
Lang's statements show why the Greens are really blocking the payment card law
1 hour ago
Russia's “imperial desires”: Does Putin really want a war with NATO?read
“Historic” step: howitzers, grenades, promises – traffic light prepares Ukraine read more
“Path of destruction”: Trump responds with absurd comparative reading after Navalny’s death
Traffic light is annoyed with “King Söder”: Baerbock says read breakfast at security conference
Payment card for asylum seekers: Habeck causes the next dispute - Kubicki threatens to break the traffic light
And what does the Chancellor and his party actually say in this situation?
And what does the Chancellor’s SPD say about this?
SPD politicians, such as Verena Hubertz, have recently made surprising statements calling for the need for reform of the welfare state.
However, the SPD definitely does not want to break with the Greens in this regard.
It would only be about small changes.
SPD politician Rolf Mützenich said: “We will not allow aid for Ukraine to be played off against [...] social security or the fight against climate change.”
To improve the financial situation in Germany, the SPD could imagine reforming the debt brake together with the Greens.
So far, Chancellor Olaf Scholz has said little about all of this.
His Chancellery Minister, Wolfgang Schmidt, considers it unlikely that the Chancellor will give a word of power in accordance with his policy authority: “If you make something like that public, people are more likely to stiffen up,” says Schmidt.
He sees the Chancellery more as a “couples therapy facility”.
Head of the DIW: “Unspeakable doom and gloom” as the biggest brake on growth
The dispute over financial policy issues between Habeck and Lindner will probably flare up in many places in the future.
Experts believe that accusations that are made publicly are not appropriate.
Statements such as that the economic situation in Germany is “embarrassing” (original tone Linder) or “dramatically bad” (original tone Habeck) would not help anyone, says the head of the German Economic Institute, Marcel Fratzscher.
He describes the “unspeakable pessimism” as one of the biggest obstacles to domestic growth.