German coalition government in crisis talks amid economic policy dispute

By Anadolu staff

BERLIN (AA) - Chancellor Olaf Scholz convened crisis talks with Finance Minister Christian Lindner and Economy and Climate Minister Robert Habeck on Monday, as the coalition government grapples with internal disputes over economic policy.

Government spokesman Steffen Hebestreit told reporters that the aim of the discussions was to develop a cohesive economic strategy that satisfies all three coalition partners, the Social Democrats, the Greens, and the liberal Free Democrats.

“The Chancellor’s priority has been to strengthen the German economy and secure jobs. And now, it’s a matter of finalizing the 2025 budget as well, which has already been largely discussed” he told a news conference in Berlin.

Hebestreit confirmed that the Greens and the Free Democrats had drafted papers outlining their economic and financial priorities, and said their proposals were currently being discussed.

“Discussions are underway, some of which you hear about and some of which you don't. The budget adjustment meeting is scheduled for Thursday next week, and an agreement is needed by then. That is what we are discussing now,” he said.

Hebestreit also reiterated that Social Democrat Chancellor Scholz held the view that the government “will work together constructively” until the regular date of the federal election next year.

Monday’s crisis talks came after Finance Minister Christian Lindner, the leader of the liberal Free Democrats (FDP), drafted a policy paper calling for a significant shift in economic and financial policy. The paper proposed slashing taxes, modifying ambitious climate goals, and introducing cuts to social spending.

In contrast, Economy and Climate Minister Robert Habeck, an influential figure of the pro-environment Greens party, presented his own strategy paper to boost the ailing German economy. Habeck's proposal called for additional special funds and substantial investments to accelerate the country's transition to a green economy.