Scholz slows down in the traffic light dispute – FDP reprimands Habeck in a letter

Companies should be relieved, Scholz and Lindner believe, but there is disagreement about “how”. Now Scholz intervenes – and Habeck receives a letter from the FDP.

Berlin – There is a lot of tension between the coalition partners the Greens and the FDP: Finance Minister Christian Lindner and Economics Minister Robert Habeck (Greens) have different ideas about how Germany's competitiveness could be strengthened and companies could be relieved.

So far there has been no word of power from the Chancellor, and Scholz reacted cautiously to the debate as usual. The Growth Opportunities Act is a “very good project,” said Olaf Scholz on Monday (February 5). Scholz said he hoped that this very concrete and practical project, “which is intended to make it easier for companies to invest, will become something even with the approval of the federal states.” We should concentrate on that now. A mediation process is currently underway between the Bundestag and the Bundesrat on the law.

Habeck and Linder in a dispute over ideas on economic policy

Scholz is probably alluding to Habeck's new mind games. He brought a special fund into play to solve structural problems. Special assets – the word is now likely to be an emotive word for Finance Minister Lindner. It has blown up in the eyes of the traffic light coalition in the last few weeks and violates Lindner's principle of not incurring any new debt.

Lindner directly rejected a special fund – it meant new debts. Habeck's idea was “surprising in every respect,” the FDP leader said quite venomously World on Sunday. “The Minister of Economic Affairs is saying that he is dissatisfied with the existing economic policy of the federal government and that he believes something completely different is necessary.”

Lindner wants to abolish the solidarity surcharge for companies

Lindner, on the other hand, came up with another proposal to ease the burden on the economy: abolishing the solidarity surcharge for companies. The chairmen of the coalition partners SPD and the Greens immediately rejected this. SPD leader Saskia Esken said on Monday that she did not think the plan could be financed. Green Party leader Ricarda Lang is also against it.

On ARD-“Report from Berlin“On Sunday evening (February 4th), Lindner reinforced his position. If the economics and finance ministers thought that something had to change in economic policy, “then that must now have concrete consequences for the federal government and for the coalition,” he emphasized.

If you really want to do something about taxes, the easiest and quickest way would be to abolish the solidarity surcharge for companies. This would also have the advantage that states and municipalities would not be burdened. But you then have to talk about counter-financing in the coalition. Habeck, however, is skeptical. Canceling the solidarity entirely would increase the budget gap, said the Vice Chancellor in the ARD program “Caren Miosga“.

The taxpayers' association and business representatives take Lindner's side in solidarity

Lindner is getting a boost from the Taxpayers' Association, which wants to go even further than Lindner: “The solidarity should be dropped completely and for everyone!” said Taxpayers' Association President Reiner Holznagel to the newspapers Funke Media Group from Tuesday (February 6th).

It’s all about “protecting trust,” says Holznagel. “People have relied on the fact that the solidarity will no longer apply when the special financial aid for the five new federal states expires.” The traffic light government should “start abolishing solidarity immediately.” Many small and medium-sized businesses would also benefit from this.

The Soli was introduced in 1991 – a year after German unification – and was intended to help finance economic development in the new federal states. Since 2021, only top earners and corporations have to pay an additional levy of 5.5 percent on income and corporation tax. In 2023, the solidarity provided the federal government with income of around twelve billion euros.

The head of the German Economic Institute (IW), Michael Hüther, also welcomed Lindner's initiative. “The abolition of the residual solidarity, which is basically a disguised corporate tax, is long overdue,” said Hüther Rhenish Post. Germany has long been a high-tax country.

Habeck only fears “homeopathic relief” due to disputes with federal states

The government's Growth Opportunities Act has not yet cleared the hurdle in the Federal Council. There are concerns in the countries. Habeck spoke at “Caren Miosga“ about a relief volume of eight billion euros and the danger that there will only be “homeopathic” relief because of the dispute with the federal states. Regarding his push in the Bundestag for a new special fund, the Vice Chancellor said: “This is an invitation” to talk about easing the burden on the economy.

Union calls for action from the traffic lights – the “impression of the ongoing dispute” is increasing

CSU regional group leader Alexander Dobrindt called on the government to act: “There needs to be real relief for the economy through lower corporate taxes, competitive energy prices and less bureaucracy,” said Dobrindt on Monday.

The chairwoman of the SME and Economic Union (MIT), Gitta Connemann, said World TV: “Once again the impression of the constant dispute at the traffic lights is reinforced. The Economics Minister doesn't speak to the Finance Minister, the Chance
llor has disappeared anyway.” The CDU member of the Bundestag warned: “The water is up to the companies' necks – the companies don't have another two years.”

In a letter to Habeck, Buschmann calls for faster relief from bureaucracy

Meanwhile, FDP Justice Minister Marco Buschmann raised another economic dispute in a letter to Habeck: The FDP politician asked when and how Habeck would implement the intention agreed in the coalition agreement to be able to carry out procurement procedures more quickly and with less bureaucracy in the future wants to carry out the act.

In the letter written on Monday (February 5th), the German press agency is available, Buschmann writes: He welcomes the key points presented by the Ministry of Economics in November, but now wants to ask whether the Ministry of Economics has now developed concrete regulations on this “and what timetable is planned for the legislative process”.