Coalition: Lindner paper calls for realignment of economic policy

In the middle of the traffic light coalition’s dispute over the right course in economic and financial policy, a new policy paper from Finance Minister and FDP leader Christian Lindner has become known. As an immediate measure, this calls for the final abolition of the solidarity surcharge, even for high earners, and an immediate stop to all new regulations.

“Germany needs a realignment of its economic policy,” it said. This should be of a fundamental nature. The paper is entitled “Economic Turnaround in Germany – Concept for More Growth and Intergenerational Justice.” It is available to the German Press Agency. “Stern” first reported on it.

The undated paper calls for an “economic turnaround” with a “partly fundamental revision of key political decisions” in order to avert damage to Germany as a business location. The German economy is in a growth crisis. A realignment of economic policy could strengthen the confidence of companies and private households.

Specifically, there is talk of an immediate moratorium to stop all new regulations. It goes on to say that, as an immediate measure, the solidarity surcharge, which is still predominantly paid by companies, self-employed people, freelancers and highly qualified people, should be abolished. The solidarity has already been abolished for 90 percent of taxpayers. The paper also states that national climate targets must be replaced by European climate targets.

Autumn of decisions

The FDP has been calling for an “economic turnaround” for a long time and has declared an “autumn of decisions”. Demands such as a complete abolition of solidarity are also generally known.

But the timing of the new paper is explosive: just a week and a half ago, Economics Minister Robert Habeck (Greens) once again proposed a billion-dollar, debt-financed sovereign wealth fund in a paper to promote investments by companies. The FDP rejects this, citing the debt brake.

Chancellor Olaf Scholz (SPD) had invited people to an industrial summit, but neither Habeck nor Lindner were invited. The FDP parliamentary group had organized a kind of counter-summit with associations.

In view of the quarrels in the coalition, there is speculation in Berlin about a break in the alliance. Government spokesman Steffen Hebestreit rejected this.