German Chancellor Olaf Scholz is under scrutiny for not inviting his Finance Minister Christian Lindner and Economics Minister Robert Habeck to an economic summit with business and trade union representatives in Berlin on Tuesday. Critics argue that the absence of these key ministers suggests Scholz is sidelining other parties and prematurely launching his campaign ahead of next year’s election.
Defending the chancellor, Social Democratic Party leader Saskia Esken stated on ZDF television that it is “completely normal” for a chancellor to take charge in a crisis. However, conservative outlet Die Welt reported that Lindner would have preferred to attend the event. In response to his exclusion, Lindner scheduled a separate meeting with small and medium-sized enterprises and skilled trades representatives to coincide with Scholz’s summit.
Lindner remains committed to adhering to Germany’s debt brake, which limits the structural budget deficit to around 0.35% of the country’s GDP. He described his own meeting as a necessary response to Germany’s economic challenges, particularly in light of potential plant closures at Volkswagen. Meanwhile, Habeck, widely seen as a likely Green candidate for chancellor, has issued his own economic analysis paper, emphasizing the need for significant public investment and addressing macroeconomic policy and interest rates.
In an interview with Süddeutsche Zeitung, Alfred Kammer, the IMF’s Europe chief, highlighted that not all U.S. policies are applicable to Germany and Europe. He noted that European companies are generally less productive than their American counterparts and identified long-term growth challenges in the EU, including a declining labor force, excessive bureaucracy, and the absence of a true single market.
The planned reduction in bureaucracy by the German government has faced criticism from employers’ associations. Kammer asserted that the structural reforms proposed by Lindner are “indispensable,” emphasizing that the public sector must increase investment to support a productive economy and address neglected infrastructure issues.
Scholz recently commented that “we need to get off the theatre stage,” which may explain why no press conference is scheduled following Tuesday’s summit.
