Washington FDP leader and Federal Finance Minister Christian Lindner has warned of the economic consequences of the Russian war of aggression in Ukraine. Germany must oppose “stagflation” – a weaker economy with increasing currency devaluation – said Lindner, who was digitally connected to the FDP federal party conference from Washington on Saturday.
There is a “risk of impoverishment for many people,” said Lindner. It is also a danger for being able to make a living as before. In addition, confidence in Germany as an investment location is being damaged, and entrepreneurs are less willing to take risks. A stagflation could very quickly turn into an even deeper crisis of stability. In addition, there is a risk of hunger in parts of the world.
“On the one hand, we need more and stronger economic growth. This will not succeed in a situation of shortages, delivery bottlenecks and rising prices by distributing more and more government money and subsidies,” said Lindner. He called for investing in education and research, solving challenges in recruiting skilled workers, reducing bureaucracy and speeding up planning processes.
At the same time, the Federal Minister of Finance continues to rule out tax increases. The waiver of tax increases was already important in the coalition agreement, “now this waiver is urgent”.
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Lindner has also given Chancellor Olaf Scholz (SPD) backing in the dispute over arms deliveries to Ukraine. “The Chancellor has the confidence of the FDP and also of their parliamentary group in the German Bundestag,” said Lindner.
But it is also clear: “Ukraine needs military aid and heavy weapons.” The situation requires responsible and serious decisions. General criticism of the Federal Chancellor cannot be a matter for the FDP, said Lindner.
Lindner criticizes Union for “partisan political maneuvers”
Lindner sharply condemned the planned application by the Union in the Bundestag for the delivery of heavy weapons to Ukraine. “With a current initiative to deliver arms, an attempt is obviously being made to cause difficulties for the governing coalition and thus also to destabilize the government as a whole,” said Lindner.
“To put it bluntly: In times of war in Europe I have absolutely no sympathy for this form of partisan political maneuvering. We need a government that is capable of acting and that makes the necessary decisions for our office.”
It also bothers him that the Union faction is also arguing very tactically for the planned 100 billion euro special fund for the Bundeswehr, Lindner said. Union faction leader Friedrich Merz (CDU) said that the traffic light coalition would no longer vote for the necessary amendment to the Basic Law. “What is this more than pure partisan tactics in a question of this historical dimension?”
It is a fundamental step, said Lindner. The Union must ask itself whether it is doing justice to its state-political responsibility with this approach. His appeal to the CDU and CSU was “to stop party-political gymnastics on questions of security in the Federal Republic of Germany and on existential questions of the alliance and to assume state-political responsibility”.
FDP Vice Wolfgang Kubicki had previously opened the party conference with criticism of the coalition partner SPD. With a view to the international criticism of Germany’s hesitant attitude when it came to supplying arms to Ukraine, he said: “The image that many representatives of the largest governing party are presenting in front of the eyes of the world public is not one that can satisfy us as a coalition partner. “
Kubicki warned: “We simply don’t have time to deal with the ideological ballast of the past.” Concrete and effective military aid for Ukraine is needed. “And some say that the decisive will to lead is also missing at the moment.”
FDP leader demands rapid independence from Russian energy sources
According to Lindner, Ukraine has been attacked by Russian President Vladimir Putin because it has “made value decisions in the direction of Europe” and is thus steering away from Putin’s authoritarian system. “In Ukraine, there is also a fight for the values that are important to us,” said Lindner. “Therefore, Ukraine must win this war, and Ukraine will win this war,” said Lindner.
At the same time, Lindner emphasized that Germany and Europe must become independent of importing Russian energy sources as quickly as possible. Diversification would have to be done, for example with the import of liquid gas, and the renewable “liberty energies” would have to be expanded at an accelerated rate. It is important that energy remains affordable and that the competitiveness of the German economy is secured. With a view to the global consequences of the war, for example for the world economy or the food supply, Lindner said that the reason for this was not the sanctions imposed on Russia, but President Vladimir Putin’s war of aggression.
More: Between cooperation and confrontation: Finance Minister Lindner is looking for a course in the traffic light coalition.