analysis
In his government statement, Economics Minister Habeck tries to invoke urgency without painting the economic situation too darkly. He once again calls on the Union to end the blockade.
There are only a good ten hours between the end of the mediation committee and the economic debate in the Bundestag. Economics Minister Robert Habeck calls it the “mini elephant in the room”.
He has to present the poor economic indicators this Thursday. And we have known since last night that the blockade of the “Growth Opportunities Act”, which is intended to relieve the burden on companies, continues. She may have even hardened.
The discussions of the mediation committee are actually confidential. The minutes are only published at the end of an electoral period. Nevertheless, a number of MPs who were there used the debate to report on it.
Don’t paint things too darkly
Even left-wing MP Gesine Lötzsch chimes in: “Yes, people, it’s actually not usual to speak publicly about voting results,” says Lötzsch, who is herself a member of the committee. “But I would like to report that the Green Prime Minister Kretschmann also rejected the ‘growth opportunities package’.” However, the State Ministry in Baden-Württemberg denies this. It is also said that one is surprised that the confidentiality of the committee is being ignored.
The traffic light factions probably won’t like this moment at all. Because their point of view is actually the same today: The Union is blocking the law – even though a number of business representatives strongly advise that it should finally be passed.
So all that remains for Habeck these days is a balancing act: on the one hand, emphasize the urgency of providing growth impulses and, on the other hand, not paint the situation too darkly. He emphasizes that the fact that the new annual economic report only expects growth of 0.2 percent is also the result of many external factors that are difficult to influence: the war in Ukraine, closed trade routes, and even high levels of sickness in recent months.
Criticism of the Union
It seems as if Habeck would have preferred to take out the cardboard boards with graphics that he had with him on Wednesday when the annual report was presented. There were two curves that crossed each other around the beginning of 2024 and which Habeck also referred to in his Bundestag speech: Disposable income is likely to exceed inflation this year.
This is Habeck’s glimmer of hope. “We have reached a point where there is more money in our wallets again.” Rising consumption could then stimulate the economy.
The Union is demanding tax relief “in the amount of 45 to 50 billion euros,” said Habeck, but is not making any suggestions for counter-financing and is blocking the traffic light incentives. “Listen to the business associations and finally give the ‘Growth Opportunities Act’ a chance,” Habeck concluded his speech.
Dürr: “Stop it To write letters”
FDP parliamentary group leader Christian Dürr is even clearer: The Union has been refusing to work on a solution for months. He also reported on the evening in the mediation committee, of which he is also a member: “Yesterday there was no proposal from the CDU either. They never request anything!” shouts Dürr. “You write letters. Stop writing letters,” demands Dürr. Instead, the Union should work in parliaments.
The opposition does not want to accept the reference to external crises. “The recession is not global, not even European,” says CSU group leader Alexander Dobrindt in the direction of the government bank. “All our neighbors have the same crises, but greater growth. It is your responsibility.”
Union remains linked to agricultural diesel
One hope for the traffic light has been dashed with this debate and the night in the Federal Council: The Union wants to continue to link the “Growth Opportunities Act” with the subsidy cuts in agriculture. The tax relief for agricultural diesel must remain. But the coalition continues to reject this.
It seems that the longer people talk about it, the fronts become more hardened. And with every turn, it’s actually more about less: the package that was decided on Wednesday in the Mediation Committee has clearly been torn apart. For example, the climate protection investment bonus will be out when the Bundestag votes again on the “Growth Opportunities Act” on Friday.
The more important vote will only take place in the Federal Council at the end of March. Until then, the coalition wants to continue to influence the Union to give in. But even if it is then decided, the package could no longer have the impact originally planned.