German Coalition Squabbles Over Finance Minister’s New Proposals
(Bloomberg) -- Infighting within Germany’s three-party coalition escalated on Sunday as top officials dismissed Finance Minister Christian Lindner’s latest economic proposals.
Most Read from Bloomberg
The Answer To Making Cities More Family-Friendly? Courtyards
In Warsaw, Falling Road Deaths Signal a Traffic Safety Turnaround
Chicago Mayor Seeks Property Tax Hike, Breaking Campaign Vow
Lindner, leader of the free market-leaning FDP, issued a position paper on Friday calling for tax cuts and a slower approach to emissions reductions. The suggestions quickly met with derision from leading members of his Social Democratic and Green coalition partners.
It’s the latest round of squabbling among the ruling coalition, adding to speculation that the grouping could break apart.
“I see no strategy, no plan from Lindner,” SPD deputy leader Serpil Midyatli said in comments reported by Zeit Online. “You can’t keep talking the country down.”
“What we need instead is a finance minister who does his job and closes the multibillion euro holes in the budget,” senior Green politician Katharina Dröge said in comments to the media organization RedaktionsNetzwerk Deutschland.
The three-party coalition is already struggling with an economy set to contract for the second straight year, as key industries like cars and chemicals face disruptive transformations.
Chancellor Olaf Scholz, meanwhile, has been unable to find common ground with his vice chancellor, Robert Habeck of the Greens, and Lindner, the liberal finance minister.
As the economy flounders, Lindner’s proposal called for a shift in policy including lower taxes, an immediate halt to all new regulations, and a change in course on climate initiatives.
The document, which became available online late Friday, was intended as a discussion paper within the government and wasn’t meant to be published, according to the FDP.
The latest clash comes ahead of pivotal budget talks and adds to speculation about the future of the coalition. Scholz’s government faces the dual burden of bridging an €8 billion ($8.67 billion) budget gap, and addressing a pending court ruling that could strip €75 billion from public finances.
Triggered by an FDP-backed lawsuit, the Federal Constitutional Court is set to assess the legality of the “solidarity surcharge” used to finance German reunification — a ruling that could reshape the coalition’s financial strategy just a year before elections.
Most Read from Bloomberg Businessweek
Even Some High-Income Americans Can’t Afford New Cars Anymore
Trump’s Immigration Policy Would Make Food Inflation Even Worse
How to End the Backlog of Asylum Cases? Take Them Out of the Courts
©2024 Bloomberg L.P.
