Economic policy: Söder: traffic lights without a plan for the economy

Bavaria’s Prime Minister Markus Söder has accused the traffic lights of failing in economic policy. After Chancellor Olaf Scholz (SPD) and the FDP parliamentary group with Finance Minister Christian Lindner held an economic summit separately on Tuesday, the CSU leader said: “Without a plan for the economy, without a plan for Germany: the traffic light is embarrassing with the competing summits not just yourself, but our entire country.” He further told the German Press Agency with regard to the red-green-yellow federal government: “All promises and assurances are absolutely worthless because they have not been agreed upon among the coalition partners.”

Chancellor Scholz single-handedly initiated his industrial summit in the Chancellery two weeks ago. After the FDP parliamentary group’s discussions with the employers’ association and representatives of medium-sized businesses and crafts, Minister Lindner called for joint decisions by the traffic light government in the next few weeks. No concrete results were planned for either meeting from the outset.

Scholz wants to forge a “pact for the industry”.

After his meeting with business representatives and unions, Scholz called for a “pact for industry” with concrete measures to be forged together. “Germany is a strong country that is currently facing major challenges,” he said. “Now it’s about tackling it together and strengthening the location with a pact for the industry that includes very concrete measures.” Scholz had previously discussed ways out of the economic crisis with 13 representatives from industrial associations, unions and selected companies. Government spokesman Steffen Hebestreit announced that another meeting in this group would take place on November 15th.

Söder wants a “real economic turnaround” for Germany

Söder doubted that the traffic lights would do what was necessary. He spoke of a “series of inconclusive summits” – but Germany needs a “real economic turnaround.” His demands: “Broad relief for small and medium-sized businesses and trades, lower taxes and electricity prices, reduce bureaucracy, abolish citizens’ money, support for our key industries. We also need a different energy policy and must use modern nuclear energy and partnerships with other countries.” This is the only way to “defend people’s hard-earned prosperity,” said Söder.

Demand for immediate relief for the economy

The former president of the Association of Family Businesses, Reinhold von Eben-Worlée, was also dissatisfied. He told the German Press Agency: “The German economy is carrying around a huge backpack of bureaucracy and financial burdens. What we need now is immediate relief.”

Eben-Worlée took part in the FDP meeting with representatives of business associations. He then said: “The conversation makes us optimistic that deregulation and relief are finally possible. What is crucial is that the federal government takes action.” This means postponing pension package II, a moratorium on new burdens and a reduction in bureaucracy and reporting requirements.

Crucial meeting on the budget in mid-November

The German economy is in crisis; according to forecasts, 2024 will be the second year of recession in a row. There are different ideas about additional measures to stimulate the economy. There is also the question of how these should be financed. The FDP rejects debt-financed programs, such as those proposed by Economics Minister Robert Habeck (Greens), because of the debt brake. There will be a crucial meeting of the Bundestag Budget Committee in mid-November regarding the budget for 2025. There are still billions in gaps that need to be closed.

FDP politician Faber sees the continued existence of the traffic light at risk

FDP member of the Bundestag Marcus Faber believes it is conceivable that the traffic light coalition will break up in the fall. In the ZDF program “Markus Lanz” he made this dependent on whether the SPD, Greens and FDP could achieve something together. In the next two months, the federal budget for 2025 would have to be launched and something would have to be done in the area of ​​economic transition and Germany as an industrial location.

“If we can do something else here, then it’s worth it for this coalition to stay together. If we can no longer do that, then it’s better to clear the way,” said Faber. “Those are the options that are on the table.” That’s why FDP party leader Christian Lindner also talks about the “autumn of the decision”. “If decisions are made, then things can continue. If decisions are not made, then things cannot continue,” said Faber when asked whether this coalition was over.