An ‘indiscretion’ has rocked the German traffic light coalition and could even mean the end of cooperation. In an 18-page policy document that has made its way to the public, Finance Minister Christian Lindner (FDP) calls for a complete reversal of German economic and financial policies and partly distances himself from the policies of the ruling traffic light coalition from the past three years.
Challenges such as an investment backlog, low productivity or a special approach to climate protection have not only not been addressed by politicians in recent years, but in some cases have been “intentionally brought about,” Lindner writes in the 18-page article. “Therefore, an economic turnaround with a partial fundamental revision of important political decisions is necessary to prevent damage to Germany as a business location.”
Specifically, the head of the liberal FDP proposes an immediate halt to all new regulations and a reduction of evidence and reporting requirements to a necessary minimum. “As an immediate measure, the solidarity surcharge, which is mainly paid by entrepreneurs, self-employed people, freelancers and highly qualified people, must be abolished,” he further demands in the newspaper that he presents as Minister of Finance. As a first step, the solidarity surcharge must be reduced by 2.5 percentage points to three percent in 2025 and completely abolished in 2027. At the same time, corporate taxes should be reduced by two percentage points in 2025 and further reduced in 2027 and 2029. The document explicitly criticizes a German special approach to climate policy.
With a view to the 2025 budget, Lindner calls for further savings. The revenue base has decreased by eleven billion euros. At the same time, however, citizens’ money and housing expenditures and the promotion of renewable energy would continue to rise.
FDP calls for “economic turnaround”
The FDP has long called for an “economic turnaround” and has declared an “autumn of decisions”. Demands such as a complete abolition of solidarity are also common knowledge. But the timing of the new document is explosive: just a week and a half ago, German Economics Minister Robert Habeck (Greens) again proposed a billion-dollar debt-financed sovereign wealth fund to promote corporate investment in a document. The FDP rejects this, citing the debt brake.
The coming weeks are crucial
The policy document, which Linder says was leaked out of “indiscretion,” has added even more fuel to the fire currently blazing within the coalition. German media are already talking about ‘divorce papers’. Chancellor spokesman Steffen Hebestreit emphasized on Friday that he “does not have the impression that anyone is about to get into trouble.” However, several FDP representatives reiterated that their continued existence in the government alliance depends on the decisions made in the coming weeks.
On Thursday, Lindner did not want to explicitly commit to the continued existence of the traffic light coalition. In an interview with Spiegel, the Finance Minister simply said that he had no intention of abandoning the “traffic light”. The upcoming budget negotiations are crucial for him.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
