Criticisms levelled at the fiscal and economic strategies of the GroKo coalition by Merz
Berlin - Contender for the leadership of the Christian Democratic Union (CDU), Friedrich Merz, has expressed reservations about certain aspects of the economic policy of the current grand coalition, particularly in regards to fiscal discipline and state intervention in businesses. In an interview with the Bild show "The Right Questions," Merz implicitly criticized the policies of the previous coalition, which included figures such as Christian Lindner, the current FDP leader, and Peter Altmaier, the CDU's former Minister for Economic Affairs and Energy.
Merz questioned the previous government's efforts to stimulate economic recovery, accusing them of overreliance on state aid and intervention, particularly in companies like Lufthansa. He expressed concern over the amount of money being spent in such measures, stating that he can no longer comprehend the scale.
In conducting his critique, Merz also offered some criticism for Altmaier, suggesting that the CDU had followed the Social Democratic Party's (SPD) tendency toward state capitalism too closely. He suggested that more discussions about alternatives and the presentation of those alternatives as proposals would have been preferable.
In a nuanced stance, Merz did not advocate for abandoning state aid entirely but suggested that it could have been provided in a different form than through state participation. This view indicates a departure from the extensive subsidies granted to companies under previous governments.
It's worth noting that Merz's views reflect a push for a shift in economic direction, particularly in regard to state aid and the handling of critical companies. Merz's coalition aims to move away from a protectionist approach, instead focusing on economic resilience and competitiveness. Moreover, Merz has signaled a more market-oriented stance, suggesting that companies should bear the consequences of risky investments themselves, rather than relying on government bailouts.
The grand coalition under Merz favors austerity measures and strategic investments over broad government support. The coalition has approved a €500 billion investment package for infrastructure, while also maintaining fiscal discipline through the "debt brake." This approach marks a clear ideological shift from the policies under Lindner and Altmaier's influence.
Other political figures, such as Friedrich Merz, have expressed reservations about the policy-and-legislation approach of previous governments, particularly in terms of economic policy, especially relating to fiscal discipline and state intervention in businesses. In general-news discussions, Merz has implicitly criticized the policies of the previous coalition, specifically accusing them of overreliance on state aid and intervention, particularly in companies like Lufthansa.
