The German government is facing a crisis as tensions rise within the ruling coalition.
Finance Minister Christian Lindner has issued an economic policy paper criticizing the government's current trajectory and warning coalition partners, the Social Democratic Party (SPD) and the Greens.
The coalition partners have different economic strategies. The SPD advocates for a minimum wage increase and tax relief for companies, while the Greens propose a "Germany Fund" financed through new debt.
Lindner opposes measures that would compromise Germany's debt brake. He calls for deregulation, tax cuts, and a moratorium on new regulations. Lindner also challenges the coalition's climate goals.
The discord within the coalition has led to speculation about the viability of their alliance. The FDP's commitment to deregulation and limiting social spending contrasts with the SPD and Greens' priorities.
The coming weeks are critical for the coalition as decisions regarding the 2025 budget approach. The FDP's economic policy paper is seen as a potential breaking point for the coalition.
The coalition partners have conflicting visions for Germany's economic future. The FDP advocates for deregulation and tax cuts, while the SPD and Greens call for increased state intervention and social spending.
The stability of the coalition hangs in the balance.