It's not uncommon to rip into your enemies in politics and accuse them of being unfit for office because of their character faults. It is unusual, though, for a German politician to publicly eviscerate one of his coalition partners, which makes German Chancellor Olaf Scholz's firing of Finance Minister Christian Lindner last week so notable, all the more so because Scholz is known for his cautious - one might say hesitant - style. For the social democrat to air internal government laundry in such a way, you know it must have been really dirty.

So what did Scholz say? Well, first he justified his decision to ask the German president to fire Lindner by saying that he was "forced to take this step so as to avert harm from our country." That's a serious statement. Essentially, he is accusing the leader of the neo-liberal Free Democrats, his coalition partner for three years, of harming Germany. Why would he do that? In short, for those who don't follow German politics: Lindner and his party have effectively been blocking the rest of the government from passing any measures that might increase public debt or raise taxes, at a time when Germany's peers are responding to multiple global crises with big stimulus packages. Instead of investing in ailing infrastructure, renewable energy, schools, public services etc. the Free Democrats (FDP) have steered one of the world's most prosperous countries close to a course of austerity, much to the frustration of the rest of the coalition.

Scholz said that, before he pulled the trigger last Wednesday, he made another "comprehensive offer" to Lindner and his party for how to close the country's looming budget gap "without sending our country into chaos." It included several proposals coming from the FDP but also made clear that the government needs "more financial room for maneuver." This would likely have to come in the form of a special budget or the easing of Germany's rigid debt brake.

Scholz said his proposals focused on four areas:

  • lowering energy costs to strengthen the German economy
  • putting together a package that would secure jobs in the ailing auto industry
  • boosting investment to Germany with IRA-like tax breaks
  • increasing support to Ukraine in light of the outcome of the U.S. election.

"The federal finance minister showed no willingness whatsoever to implement this offer in the interest of our country," the chancellor said. "I can no longer expect our country to tolerate that."

Looking back, Scholz said he entered into the coalition with the FDP and the environmentalist Greens in 2021 hoping to reach "good compromises" among the three different parties. "That was often difficult, sometimes things went close to the edge of my political convictions. But it's my duty as chancellor to push for pragmatic solutions in the interest of our whole country."

Scholz then accused Lindner of blocking bills out of "petty party-political tactics."

"Too often he broke my trust," the chancellor said, noting that Lindner had even reversed his previous consent to a draft budget forged after long negotiations. "There is no basis of trust for working together anymore. Serious government work is not possible this way."

Speaking to assembled reporters in the chancellery shortly after firing Lindner, Scholz accused the FDP leader of "egoism" and only being interested in his own party's voters and its short-term survival. Current polls put the Free Democrats close to dropping below the 5% threshold needed to stay in parliament.

Citing the government's achievements in reducing "irregular migration," ramping up renewable energy, lowering inflation, raising real incomes and pensions and stabilising energy prices, Scholz slammed Lindner's blockade on other fronts, such as a reform of social welfare policy and arms to Ukraine. "Never, never must we play domestic, external and social security off against each other," he said. "In the end this will even endanger our democracy."

Lindner had called for billions in tax relief for top earners and cuts to pensions. "That's not decent, it's not fair," Scholz said. At the same time he accused the FDP leader of harming Germany's chances when it comes to the green technologies of the future by refusing to invest in climate-friendly modernisation measures.

Some have criticised Scholz for his harsh choice of words, saying that personal attacks ("egoism," "petty," "not decent") against fellow politicians aren't appropriate. Others have said the chancellor waited too long before bluntly saying what many had long thought.

What's clear is that coalition governments, particularly those with more than two parties, are a fragile construct that stands and falls on the ability to forge compromises. This will only get more difficult as German politics becomes more fractured by the rise of the far-right Alternative for Germany and the left-conservative BSW. One party, however, might not feature in the next legislative period: the Free Democrats.

Update: German media, including Süddeutsche Zeitung and die Zeit, report that the FDP had been strategically planning its exit from the coalition for months. More via the Guardian here.

2024-11-06-statement-scholz German Chancellor Olaf Scholz speaking to reporters in the chancellery on Nov. 6, 2024. Credit: German government / Steffen Kugler

Previous Post