Berlin Olaf Scholz (SPD) wants to demonstrate harmony. It was a “very good cabinet retreat,” says the chancellor after two days of consultation with the ministers at Meseberg Castle. They worked “very constructively”, as “Robert and Christian” could confirm.
This refers to Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck (Greens), who, together with the Chancellor, informed about the meeting in the federal government’s guest house on Monday afternoon. After the ongoing dispute of the past few weeks, Scholz wants to convey some change.
“I can tell you that we have also made progress on many issues that we negotiate in day-to-day business,” said Scholz. The traffic light coalition wants to complete various projects “in a very short time”.
But Scholz, Habeck and Lindner did not announce any concrete agreements. Expectations had already been dampened in the run-up to the cabinet meeting. The government said the results would not be available until the end of March at the coalition committee. In Meseberg, it’s more about the broad lines of politics, not detailed negotiations. And the opportunity to talk to each other in the evening over beer and wine in a relaxed atmosphere.
This is urgently needed. Whether it’s the federal budget, the construction of motorways or recently the end of combustion engines – the Greens and the FDP in particular are constantly fighting each other. “A lot of relationship work is necessary,” says the coalition.
FDP hairy in the dispute over e-fuels on legal certainty
Transport Minister Volker Wissing (FDP) recently made no secret of the fact that there is a lot of rumbling within the federal government. When it came to freeways, they would “argue violently,” he admitted. Of course not “in a bad way”, as he added. Again and again, the fundamental question is how people can be mobile – and at the same time blow significantly less carbon dioxide into the air than today.
The latest conflict: the end of the internal combustion engine in Europe from 2035. Germany had actually already agreed to this – on the condition that synthetic fuels from renewable energies (e-fuels) are given a chance to assert themselves on the market by 2035, and with that could save the drive technology.
From the point of view of the Liberals, however, this condition has not been fulfilled by the EU Commission. A week ago, the FDP in the federal government therefore stood in the way, so that the necessary majority among the heads of state and government for the final vote, actually a formality, is now shaking again.
It wobbles so much that this week’s vote has been postponed indefinitely. “There is no legal certainty,” explained Lindner. “We need this legal certainty.”
>> Read here: Von der Leyen: Constructive dialogue on combustion engine off
EU Commission President Ursula von der Leyen spoke in Meseberg about the unusual approach of a member state. The EU Commission also advocates openness to technology – in line with the climate protection goals, she said. It is important to find this balance.
The Greens hoped in vain for the chancellor to put his foot down
Scholz sees Brussels as having a duty, as he made clear again after the exam. The Federal Government agreed that the Commission would make a proposal. The chancellor supports the line of the FDP.
Some Greens had imagined it differently. In the run-up to Meseberg, they hoped for a word of power from the chancellor on many points of contention. Whether it’s the end of combustion engines or basic child security – many Greens feel that their larger coalition partner has let them down.
According to the Greens, the chancellor is governing according to the principle of “divide and rule”. In dialogue with the FDP, however, no agreements will be reached.
Scholz defended Wissing, who had been heavily criticized by the Greens. “A very, very good transport minister” he was, emphasized the Chancellor in Meseberg. Wissing had to tackle a lot of leftover things. This not only includes rehabilitating crumbling motorway bridges and crumbling rail lines.
>> Read here: Despite disputes, Scholz draws a positive interim conclusion from the coalition
Actually, the coalition wants to modernize the planning and approval law. She wants to implement important investments for the politically desired transformation of the energy and transport sectors as quickly as possible. But instead of talking about the many small adjustments in approval law, which increase speed and still take environmental protection concerns into account, everything revolves around the big question: Do we also want to build roads or just wind turbines, power grids and railways?
FDP and Greens argue about Autobahns
In the SPD, some faction members are annoyed by the dispute, which is mainly being fought by the FDP and the Greens. “We discuss transport policy very ideologically.”
Behind the scenes, parliamentary group deputy Detlef Müller has long since suggested to Chancellor Scholz that the particularly important road projects listed in the planning up to 2030 be planned and approved more quickly. But others should be deferred. The Chancellery is exploring a compromise, it said. But Müller’s proposal does not seem to find a majority in either the Greens or the FDP.
Wissing wants to further expand the autobahns, also to promote the economy.
(Photo: dpa)
Wissing had presented a new prognosis punctually before the exam. Accordingly, traffic will increase – especially on the road. For Wissing, this also means economic growth. If you want to “raise” growth, you have to “expand transport routes and infrastructure”, he justifies his goal of expanding motorways or even building new ones.
The Greens see it very differently. “Massive investments in the railways are needed to renovate, electrify, digitize,” says traffic policy spokesman Stefan Gelbhaar. “We have to reactivate closed routes and further expand the route network. A future-proof rail infrastructure is a basic prerequisite for the turnaround in traffic and climate protection.” Where the money will come from is still unclear.
The budget is another contentious issue in the traffic light. Finance Minister Lindner is currently in the process of drawing up the benchmarks for the 2024 budget. They are to be decided by the cabinet next week. But there is also a clear problem here.
>> Read here: Cross-off list: How the traffic light could save 80 billion euros
In the past week, all ministers have been to Lindner to negotiate their budgets. Most want more money, the additional requests amount to a total of 70 billion euros. Lindner does not want to fulfill these, after all he wants to comply with the debt brake in 2024 and forego tax increases.
Are the corner values coming later?
“We have not held any budget talks here,” said Lindner after the cabinet meeting. However, he will still have to negotiate with some colleagues. According to government circles, there was no agreement at many ministerial talks in the past week.
The gap has even gotten bigger because one has to reckon with further increases in interest payments. “It’s a huge problem,” they say. Lindner has already publicly warned that the interest payments are now calculated at almost 40 billion euros. In 2021, the debt service was still four billion.
Rising interest costs are further reducing budgetary leeway – and making it more difficult for the federal government to reach an agreement. The Ministry of Finance wanted to have the basic budget figures ready by next Friday. It is now uncertain whether this will work. The risk is increasing that the cabinet decision will have to be postponed.
It would be the opposite of Scholz’s announcement in Meseberg that the traffic lights would bring projects to a conclusion “in a very short time”.
More: Scholz repeatedly takes Lindner’s side – to the annoyance of the Greens