No matter how the coalition poker ends: The signs that Germany is making economic progress are good. Because the Greens and FDP have to agree – and will put a lot of pressure on.
The exploratory talks for a possible coalition have not yet started. Nevertheless, from an economic point of view, the worst is over. The option that a red-green-red government could shape German economic policy after the election drove managers, entrepreneurs and economists to worry lines for months. The danger has evaporated. It has been clear since Sunday evening: the left has slipped into political irrelevance.
It is still unclear whether there will be a Jamaica alliance or a traffic light coalition: The fact that with the Greens and Liberals – measured by the result of the SPD and Union – two smaller parties decide the political fate of the country is new in Berlin politics – and good.
Because even if the Greens and the FDP have so far been maximally apart, especially in the fields of climate protection and tax policy: Both want to take on government responsibility. Both stand for restart. And since a grand coalition with the Union as a junior partner seems unrealistic, both parties are needed. Greens and liberals will probably agree. Because there are overlaps.
Everyone agrees that Germany needs to become more digital and less bureaucratic. Regardless of whether the future Chancellor is from the SPD or the Union: It is a given that the two coalition partners – despite the future Chancellor’s policy competence – will build up enough pressure to get things done in terms of modernization.
The problems are known – solutions are needed now
This is good news for companies in Germany. The economy is still strong, even after the gloomy Corona times. But in order to continue to be successful and to remain a successful industrialized country despite efforts to achieve climate change, politics must set the right framework conditions. Not because there was a risk of a crash in the next year or two. No, because otherwise the connection will be lost in the future.
Reforms are needed so that Germany, which is known for its strong exports, is not crushed between the interests of China and the USA in global competition. And intelligent concepts are needed that motivate companies not to leave Germany and to continue investing in this country. It has long been known that excessive bureaucracy, inadequate digitization, rising energy prices and high taxes are hugely affecting companies in this country and weakening competitiveness. Solutions are needed now.
It was not without reason that the Union campaigned to want to put together an “unleashing package” for the German economy. The project is still important. Greens and liberals see it the same way. If both parties are part of a government, it is no longer so important whether Olaf Scholz or Armin Laschet moves into the Chancellery.