Lindner is fostering disagreements between Habeck and Scholz.
The projected taxes are stoking the flames of discord within the traffic light coalition regarding financial and economic policies. In interviews, Finance Minister Lindner critically slammed Chancellor Scholz and Economics Minister Habeck. However, he has no intention of disbanding the coalition - under one condition.
There's been a rift within the traffic light government over the way out of the economic slump and appropriate financial policies. Federal Finance Minister Christian Lindner criticized on ZDF that recent economic policy proposals by Chancellor Olaf Scholz and Economics Minister Robert Habeck lacked coordination. The FDP leader demanded a decisive direction in the fall - and once more cautioned on ARD that "we'll see if we can continue as a coalition."
"No, the suggestions from Mr. Scholz weren't coordinated, and neither were those from Mr. Habeck," Lindner said on the ZDF-"heute journal". "We converse, but I'm unaware of these proposals. And that's a problem in itself."
He now believes that 50 percent of the issues in economic policy, the lack of investments, and also the lack of private consumption can be linked to politically induced uncertainty. Lindner urged that clarity must be established this fall "regarding which direction this country is heading in economic and financial policy." If not, the economic progress will continue to deteriorate.
Chancellor Scholz announced an industrial policy offensive in the Bundestag last week. The SPD politician intends to bring together representatives of companies, trade unions, and associations for an industry summit at the Chancellery to discuss ways out of the economic downturn.
"Conceptual unease"
Economics Minister Habeck proposed on Wednesday to boost the economy with a debt-financed state investment and infrastructure fund. According to his ideas, companies should receive ten percent of all investments from the state.
Lindner had already raised doubts about the feasibility of the Habeck proposal and now added: "I'm not swayed by that substantively," he said. "After we've seen that subsidies didn't assist Intel, now Intel's supposed to double down." For him, that's "a sign of conceptual unease." The federal government had promised a multi-billion euro subsidy for an Intel chip factory in Magdeburg, but construction has now been delayed.
Considering the latest tax estimate and the hard-to-draft federal budget for 2025, Lindner said: "Fiscal policy can't rectify what economic policy has overlooked." The FDP leader insists on budget cuts for the coming year - he had suggested reducing the citizen's allowance, to which Scholz reacted coldly. The Greens and the SPD, however, have not given up hope of still making an exception to the debt brake or setting up debt-financed special funds outside the budget.
Both Lindner, Scholz, and Habeck are currently not in Germany - Lindner gave the interviews from Washington, while the Chancellor and his deputy are participating today in German-Indian government consultations in New Delhi.
"No intention of dissolving the coalition"
In recent months, rumors have swirled about an early demise of the coalition due to the numerous disagreements among the traffic light parties. The finance minister countered the notion of already acting like the opposition in ZDF. "If everyone sticks to the coalition agreement and its spirit, then I certainly have no desire to disband a government coalition." He cited examples such as "no tax hikes, sound financial policy, relief for citizens, record investments in infrastructure" as concrete examples.
It's crucial to note: "When what the country needs becomes more urgent and what's politically feasible becomes smaller, everyone must pitch in and help." In the ARD "Tagesthemen", the Finance Minister said that upon his return, they would have to discuss. "Are our commonalities great enough that we can tackle the country's problems? I hope so."
Scholz encourages traffic light partners
Federal Chancellor Olaf Scholz acknowledged challenges within the traffic light coalition but urged the coalition partners to continue working together until the end of the legislative period. Those who have received a mandate from the citizens to govern must fulfill their duties, the SPD politician said in the ZDF show "Maybrit Illner" broadcast on Thursday evening. That is a duty. "And no one should simply disappear into the bushes. That's not my style."
He didn't shy away from stating: "In my view, it's sometimes very tough to endure all the many disagreements and ensure good outcomes result from it."
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