Debate Over Lindner’s Economic Paper: “Coalition in Turmoil”

The leadership of the SPD has completely rejected the economic proposal presented by Finance Minister Christian Lindner, with claims that the suggested measures cannot be realized within the coalition. Meanwhile, the Greens express concerns about a lack of teamwork among coalition partners. Despite internal disputes, the three parties in the “traffic light” coalition appear determined to maintain their alliance. Calls for early elections are growing, especially from the opposition, amid criticisms of the coalition’s inability to govern effectively.

The leadership of the SPD has outright rejected the economic plan presented by Finance Minister Lindner. The Greens are calling for more team spirit among the coalition partners, but it seems that the three parties in the Ampel coalition are determined to hold on.

The SPD chairpersons dismissed the measures proposed by Finance Minister Christian Lindner for an economic transformation. “All of the points he outlined are not feasible within the coalition,” said SPD leader Saskia Esken at an SPD event in Hamburg.

“In the coalition—it’s undeniable—there’s currently a fire,” Esken remarked, referencing discussions about a potential end to the Ampel government.

The minister’s position paper will not influence governmental operations, as Lindner merely clarified the FDP’s stance.

Fellow SPD co-chair Lars Klingbeil also rejected the FDP politician’s ideas. Everyone has the right to propose ways to secure jobs and Germany’s economic strength, which was also the focus of Federal Minister of Economics Robert Habeck’s economic paper.

However, Lindner is aware that proposals alone cannot resolve economic issues, particularly those leading to “the rich getting richer” while the working middle class faces lower wages, longer working hours, and reduced pensions. “The SPD will not support this in any way,” Klingbeil asserted.

Lindner’s Proposal Frustrates Coalition Members – Union Calls for New Elections

The FDP leader is calling for a shift in economic and financial policy, though he is now attempting to clarify his intentions.

Greens Call for Team Spirit

Lindner’s paper emerges against the backdrop of a crisis within the German economy. All three Ampel coalition partners agree that action is necessary. However, their opinions on how to proceed differ significantly. Various position papers from the Economics and Finance Ministries, along with separate meetings with business representatives, have recently fueled discontent within the coalition.

Katharina Dröge, head of the Green parliamentary group, criticized both the FDP and SPD for lacking a spirit of teamwork. “Everyone wants to do their own thing, no one wants to collaborate,” Dröge stated. “I also find myself at home watching the TV, feeling as if I’m witnessing a car crash,” she commented during a regional delegate conference in Gifhorn, Lower Saxony.

Nevertheless, she believes that it makes sense for the Greens to remain part of this federal government. Regarding speculation about an early end to the Ampel coalition, Dröge added, “I believe we have a responsibility. When voters mandate you to form a government, you should serve that role for four years.”

Chancellor Scholz and Finance Minister Lindner have held two separate meetings with business representatives.

Controversial Proposals

Lindner’s paper demands an economic transformation that includes “a partial fundamental revision of political key decisions.” For immediate action, it calls for the complete elimination of the solidarity surcharge for high earners, an immediate halt to all new regulations, and a shift in climate policy. According to Lindner, Germany needs to realign its economic policy.

Lindner himself lamented that the paper was leaked, as it was initially meant to be discussed only within a small circle of the federal government, as he reportedly wrote in an email to party colleagues.

FDP parliamentary leader Christian Dürr told RTL/n-tv that “Christian Lindner made a sincere proposal, which is both financially feasible and aligns with the expectations of businesses.” He stated that this should be discussed within the coalition.

Lindner’s Advisor Sees Dilemma for the FDP

Lars Feld, personal advisor to the Finance Minister, believes the continuation of the Ampel coalition is possible if the SPD and Greens largely agree with the FDP leader on economic policy. “He needs to secure many points, but not necessarily every one,” the economics professor told Handelsblatt. Particularly in labor, social, and climate policy, the coalition partners must approach the FDP.

“The FDP is in a dilemma,” Feld stated. In the event of early elections, the FDP risks failing to pass the five percent threshold. “However, if the FDP supports a flawed economic policy for months leading up to the regular election date in September 2025, their polling numbers won’t improve, and they may very well be ousted from the Bundestag.”

The aim of meetings led by the Chancellor is to determine which reforms are necessary going forward.

Union Calls for Immediate Elections

CSU leader Markus Söder has advocated for an early federal election, contrary to the Ampel parties.