Irrespective of various controversial issues, Chancellor Olaf Scholz expects a sign of confidence for the people of Germany from the closed conference of the traffic light coalition. “First of all, we will talk about how a society that has so much ahead of it can be and remain confident,” said the SPD politician at the start of the meeting in the federal government’s guest house, Schloss Meseberg, north of Berlin. That is the basis for trusting yourself.
The government came together to discuss a few fundamental issues “which we believe are worth negotiating with a little more calm,” said the Chancellor. His ministers have a number of disputes up their sleeves, from highway construction to heating problems to money. Relaxed talks behind closed doors seem necessary, because a week and a half before an important budget decision is made, the atmosphere between the SPD, the Greens and the FDP is more tense than it has been for a long time. Get together, that could be the motto of the traffic lights in Meseberg.
There was no trace of the problem issues on the official agenda for Sunday and Monday. First of all, the cabinet round wanted to talk to EU Commission President Ursula von der Leyen about “Economic prospects for Germany and Europe at a turning point”. “We are currently in a great time of upheaval, not only because of Russia’s terrible war of aggression against Ukraine and the associated turning point, which has called into question so many things that seemed certain to us for many decades,” said Scholz.
At the same time, such a retreat with an overnight stay in the guest house of the federal government is also an opportunity to at least come to terms on controversial issues. Decisions are then expected to come from a coalition committee at the end of March.
Household austerity round
One reason for the irritable climate is that FDP leader Christian Lindner will present the key points for next year’s budget on March 15. As usual, his cabinet colleagues want more money than the finance minister is willing to give them. The additional requests should add up to 70 billion euros. Rising interest rates, the debt brake and the FDP’s refusal to bolster income through tax increases limit the scope. The budget consultation is the “most demanding in recent years,” says the parliamentary director of the SPD parliamentary group, Katja Mast.
It is actually already clear that the new Defense Minister Boris Pistorius (SPD) should get more money. The Greens worry that there will not be enough left over for their social and climate policy projects. Most recently, a sometimes smug exchange of letters between Lindner and Economics Minister Robert Habeck (Greens) made the rounds.
Basic child security
The dispute over the basic child security agreed in the coalition agreement is about funds for 2025. The SPD, Greens and FDP have agreed that services from child benefit to child allowance and financial support for school trips should be bundled and better received by the beneficiaries. It is disputed whether this should also mean a multi-billion dollar financial increase.
heaters
The dispute over oil and gas heating is probably the freshest in the coalition. The partners had actually already agreed last year that from 2024, if possible, only new heating systems that are operated with 65 percent renewable energies may be installed. The Ministry of Economic Affairs has now made details of the plans public – and has drawn violent protests from the FDP. The liberals fear that the regulation for more climate protection will overwhelm many homeowners financially and drive up construction costs.
highways
Whether motorways should be built faster is a constant dispute in the coalition. The FDP demands this and refers to the prognosis that freight traffic on the road will grow strongly in the long term. The Greens reject an acceleration and call for more commitment to the climate goals.
Scholz and Baerbock
Between Scholz and his foreign minister, Annalena Baerbock, things are jerky when it comes to diplomacy. Many in the SPD do not like the fact that the Green politician often speaks plain language internationally – while Scholz prefers to regulate many things in back rooms. When Baerbock called on the Council of Europe for Western allies to stand together, she said: “We are fighting a war against Russia and not against each other.” Scholz made it clear: “This is a war between Russia and Ukraine.” The German strategy for dealing with China is also making little progress.
In the past year, one can concede that the traffic light was driven by acute crisis management. A few days before the closed meeting, however, Scholz made a government statement in the Bundestag that was no longer mainly characterized by arms deliveries, rescue packages and inflation concerns. A new phase could begin for the traffic light government, in which it is again more about the projects from the coalition agreement. Some of its members would like this to be accompanied by a return to the beginning of the collaboration, when contentious issues were primarily fought behind the scenes.
