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Bloomberg
Talks to form a three-way coalition government in Germany risk getting bogged down over finance and budget matters, based on divergent policy objectives outlined by leaders of the two junior parties over the weekend. Volker Wissing, secretary-general of the business-friendly FDP, said his party won’t accept tax increases or a loosening of the so-called debt brake, according to a report in the tabloid Bild on Sunday.
Less than 24 hours earlier, the Green Party co-leader, Robert Habeck, called for more investment in climate protection and also urged debt relief for southern European countries worst-hit by the Covid-19 pandemic. The different viewpoints of the two likeliest junior partners in a Social Democratic Party-led coalition suggest talks due to resumey may be more complicated than anticipated. Party leaders after the first day praised the good atmosphere between the negotiators.
The SPD and the Greens are traditional allies who aim to open Germany’s coffers to invest in climate initiatives, while the FDP is focused on cutting taxes, reining in debt, and reducing bureaucracy.
“Debt doesn’t create a future,†Wissing told Bild on Sunday, insisting that his party would “stick to this position.†Habeck had warned in an interview with Deutschlandfunk that withholding debt relief from cash-strapped European nations would encourage extremism.