Lindner casts doubt on billions in industry aid
Germany attracts large chip manufacturers with subsidies. The billions in aid support the construction of factories and the creation of jobs. However, Finance Minister Lindner does not care whether semiconductors come from the USA or Germany.
Parallel to the ongoing budget negotiations of the traffic light coalition, Federal Finance Minister Christian Lindner has questioned the sense of state-subsidized major infrastructure investments in the semiconductor and battery sector. He does not believe that Germany needs to promote key industries in semiconductors, batteries or hydrogen, he told Wirtschaftswoche: "I do not share the paradigm of autonomy."
The FDP leader is thus opposing Chancellor Olaf Scholz and Economics Minister Robert Habeck, who have clearly spoken out in favor of billions in aid for the construction of semiconductor factories in Magdeburg and Dresden, for example. When asked whether he was in favor of the ten billion euros in state aid for the establishment of the Intel factory in Magdeburg, Lindner replied that there were long-term declarations of intent.
He is currently negotiating the 2024 budget with Scholz and Habeck. Germany does need resilient supply chains and, in particular, de-risking in the China business, the FDP politician added. "But I don't care whether semiconductors come from the USA, Ireland or Germany - ideally they should come from different sources," Lindner emphasized. "It would be foolish to believe that we have to have all industries and all links in the value chain in our country."
Saarland's Minister President Anke Rehlinger, on the other hand, called on the traffic light coalition to keep promises for promised funding. "Many companies are deeply unsettled as to whether they can still rely on the promises made by the federal and state governments regarding subsidies or investment aid," Rehlinger told the Rheinische Post newspaper. "Reliability has always been one of Germany's key locational advantages. The traffic light coalition must not risk this now, the promises must remain valid," warned the SPD politician.
Lindner already sees Germany in a deep crisis. "The conditions for doing business have deteriorated dramatically," he said. He now wants to achieve not only budget consolidation, but also a "dynamization package for the economy". The FDP leader reiterated that he was against both a renewed suspension of the debt brake in 2024 and tax increases.
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Despite Lindner's skepticism towards industry subsidies, German officials like Minister Rehlinger argue for maintaining promises of funding for semiconductor projects, acknowledging their importance for resilient supply chains. However, Finance Minister Lindner maintains his stance, expressing that the origin of semiconductors does not concern him, as long as they come from diverse sources to avoid over-reliance on any single country.
Source: www.ntv.de
