No sooner have the ministers and chancellors returned from their summer vacation than the traffic light coalition’s next scandal. This time, FDP politicians speak of blackmail – and allegations of a “blood slide” are loud.
After the summer break everything should get better, that’s what the traffic light coalition had planned. Less arguments, less bickering, more unity. Or “less loud, but more results”, as Chancellor Olaf Scholz put it.
The intention only lasted for a short time, and the relapse occurred in the first cabinet meeting: Family Minister Lisa Paus (Greens) blocked a law with tax breaks for companies in order to get more money for families and children.
The so-called Growth Opportunities Act with around 50 tax breaks for companies should boost the stalled economy. Six billion euros relief for the economy, according to the plan of Finance Minister Christian Lindner (FDP). Economics Minister Robert Habeck (Greens) pushed through an addition and agreed. There is “great agreement,” said his spokeswoman.
But at the last second, Green Minister Paus blocked the project. According to information from government circles, one cannot put so much money into the economy, but no longer into basic child security to support families with little money. “Anyone who has money for tax cuts for companies also has money for children in poverty, right?” added the leader of the Green Youth, Sarah-Lee Heinrich.
Paus denies allegations of blackmail
However, Paus rejected allegations of blackmail by the FDP: “I don’t believe in playing off economic support measures or higher defense spending against more funds for families threatened by poverty,” said the Green politician to “Welt”. FDP deputy leader Wolfgang Kubicki had previously told the “Tagesspiegel”: “You have done your cause a disservice, because blackmail, which massively impairs our country’s economic performance, can have no future in the progressive coalition.”
The Chancellor wants to end the dispute quickly. The Growth Opportunities Act will be decided at the cabinet meeting in Meseberg, Scholz assured in the afternoon at the NRW Entrepreneurs’ Day in Düsseldorf. The few days until then will be used to “make the law a little bit nicer”.
Federal Interior Minister Nancy Faeser (SPD) even denied that there was any conflict in the coalition at all: “I don’t see any trouble in the federal government,” she said during a visit to Hesse.
Most recently, Scholz had given a written word of power with regard to basic child security and asked Paus to submit a draft law that had been agreed in the government by the end of August. This was “on its last legs,” Paus said earlier this week. At their closed meeting, Chancellor and Minister wanted to draw a line under it.
FDP speaks of an “extortion attempt”
In the FDP there is talk of an attempt at blackmail – although they have not had a clean slate in the coalition crashes of the past few months. The dispute over the financing of basic child security has been smoldering in the traffic light coalition for a long time. The Federal Government intends to introduce them before the end of this legislative period. This should make it easier for families to access state benefits. But the Greens in particular want to ensure that benefits are also increased in order to do more to combat child poverty in the country. The money approved by Lindner is far from sufficient for this.
Most recently, Scholz had given a written word of authority and asked Paus to submit a draft law that the government had agreed on by the end of August. This was “on its last legs,” Paus said earlier this week. At their closed conference at Schloss Meseberg, Chancellor and Minister wanted to draw a line under it.
Now the blocked Growth Opportunities Act is to be passed on exactly this date. The Ministry of Finance assumes that it will go through – possibly even expanded to include measures for more housing construction. After the cabinet meeting, it was said that there were “no substantive objections from any department” against the draft law. The only reason for the blockade was the dispute about basic child security.
Another thing that bothers the Ministry of Finance is that the Greens obviously do not speak with one voice. It is repeatedly emphasized that agreement was reached with Habeck’s Ministry of Economic Affairs. “The Green coalition partner in particular is now asked to clarify its priorities internally and to introduce a common Green position to the coalition,” said the appeal. FDP parliamentary group leader Christian Dürr was upset: “The fact that a coalition partner has such different views internally on such a central issue leaves me speechless.”
You can hear that if all five Green Ministers had torpedoed the law, you would probably face a full-fledged coalition crisis. But Habeck agreed, Foreign Minister Annalena Baerbock did not comment. So no escalation. FDP General Secretary Bijan Djir-Sarai nevertheless criticized: “The internal quarrels of the Greens are preventing essential economic stimuli, which Germany urgently needs in the current difficult situation.” Paus plays social issues against economic power.
Lindner’s ministry said that if the family minister wanted more than the planned two billion euros for basic child security, she would have to make counter-financing proposals herself. She was advised to take into account “that all social spending needs a strong economic foundation”.
Green parliamentary group offers support
Paus has the backing of the Greens in the Bundestag: Their parliamentary director, Irene Mihalic, said that the economic stimulus from Lindner’s law was too small compared to the burden on public budgets. “But if there is money for it, then there must also be money for those who need it most. Lisa Paus is quite right about that,” she told the editorial network Germany (RND).
The deputy chairman of the Greens parliamentary group, Andreas Audretsch, emphasized that both are needed: “Strong investment impulses to give our economy a good future and basic child security to get serious in the fight against child poverty.”
Support for Lindner came from the SPD faction. “The shifting of the law is incomprehensible to me. The economy needs measures now,” said parliamentary group leader Verena Hubertz of the RND. Business representatives also expressed their dismay. “With this, Family Minister Lisa Paus scored an unbelievable own goal for the Green government participation,” said the association of family entrepreneurs. “And that too as a bloody move against the finance minister – but above all against their own Vice Chancellor Habeck.