Leaders of Germany’s ruling coalition are meeting again in another last-ditch effort to find a joint solution to fix the country’s economy, according to AP News.
German Chancellor Olaf Scholz, Finance Minister Christian Lindner and Economy Minister Robert Habeck want to boost the economy but disagree on ways to achieve the goal. A coalition committee meeting focuses on how to close the billion-euro hole in the 2025 budget and how to get Germany’s economy back on track.
However, they fundamentally disagree on how to get the economy running again. After weeks of government infighting, many Germans are questioning whether the current government will survive the next 11 months until the next election.
If leaders fail to reach an agreement later on Wednesday, the government could be on the verge of collapse. Scholz called on all coalition partners to find a solution and put the country above the beliefs of the various parties.
As far as the situation of the government’s further work is concerned, it is about feeling committed to the country, not about ideology. And it is clear that we can. In this respect, the question is not whether it can be done at all, but whether it is possible, and everyone has to work on that now.
The Free Democrats are pushing for changes in the country’s economic policy, some of which Lindner outlined in an 18-page document. The party is adamantly opposed to raising taxes or changing Germany’s strict limits on building up its debt.
Germany’s economy is expected to contract for a second straight year in 2024 or, at best, stagnate. Challenges include bureaucracy and a shortage of skilled labour.
