Budget debate: Union blames traffic light coalition for economic weakness

The Union blames the traffic light government for the weakness of the German economy. “We handed you a country in growth and you turned it into a country of recession and stagnation. That is the problem of your term in office,” said parliamentary group vice-chairman Jens Spahn (CDU) in the debate on the budget of the Ministry of Economic Affairs in the Bundestag. Addressing Economic Affairs Minister Robert Habeck (Greens), he said: “Your green economic miracle has turned into a blue miracle of fears of decline and recession. That is the state of the country after three years of traffic light.”

Habeck accused the Union of bad-mouthing future technologies such as e-mobility, heat pumps and green hydrogen. “The weak demand that we have in Germany and Europe is essentially due to the fact that the opposition does not remember what it decided years ago and what we are now implementing,” he said, demanding: “Give up your fight against technological progress.” The economic weakness actually has its origins in the Union’s time in government.

Habeck also called on the Union not to block the planned growth package for the economy in the Bundesrat. The measures could develop growth potential of half a percentage point. “That’s not a small amount given the weak growth we are experiencing at the moment,” said Habeck. “And if someone has a good idea or wants to add something else, then we should talk about it. But I now appeal to the Union to follow their words with actions.”

The debate was about the budget for the Ministry of Economic Affairs next year. The federal government’s draft budget allocates 10.26 billion euros for this – around 800 million less than this year. Additional program expenditure of almost 35 billion euros is to come from the Climate and Transformation Fund, which exists alongside the core budget.