The former FDP leader and ex-Federal Finance Minister Christian Lindner has launched a scathing critique of Chancellor Friedrich Merz (CDU), raising serious questions about the direction of German economic and social policy. While acknowledging a degree of respect for Merz, Lindner asserted that the Chancellor has failed to deliver on his pre-election promises and, critically, often pursues policies antithetical to positions he previously championed as vital for the nation’s long-term interest.
Lindner’s assessment, delivered in an interview with ntv, paints a picture of a stalled political agenda. “A fresh start remains absent” he declared, pointing to a growing burden of “Merz debt” without corresponding structural reforms. He specifically highlighted the escalating state debt and expanding government intervention, arguing that these trends are undermining the principles of a market economy. He warned that a significant portion of the federal budget towards the end of the decade will be consumed by interest payments on the debt accrued under Merz’s leadership.
A particularly contentious issue raised by Lindner surrounds the recent allocation of a €90 billion credit line for Ukraine, backed by the EU budget. He accused Merz of abandoning the previously sacrosanct principle of shared European debt. This decision, Lindner suggested, stemmed from inadequate preparation in Brussels and a flawed assumption that Merz’s position as Chancellor afforded him undue influence.
While acknowledging a superficial adjustment to the citizen’s allowance program – primarily a renaming exercise – Lindner dismissed the changes as inadequate. He criticized the continued absence of comprehensive reform, specifically citing the failure to address the standardization of housing costs, which he deemed a missed opportunity for both administrative efficiency and incentivizing resource management. He advocated for a leaner welfare state, tax relief for the economy and accelerated timelines for achieving climate neutrality, arguing that these measures are urgently needed.
Lindner drew a historical parallel to Gerhard Schröder, whose “Agenda 2010” reforms, while not universally lauded, demonstrated a willingness to enact unpopular policies. He contrasted Schröder’s willingness to risk political backlash with what he perceives as the current climate of political decision-making, characterized by an overarching sense of apprehension. “The flexibility of political decision-makers is now marked by fearfulness” Lindner stated.
The only aspect of the current government’s policy that Lindner praised was the introduction of a new retirement savings scheme. He described it as a “game-changer” though notably pointed out the scheme originated not from the current administration but was adopted from elsewhere. He expressed caution regarding the operational details of this scheme, particularly the proposed inclusion of lifetime annuity options, noting potential conflicts of interest arising from the involvement of insurance companies. Lindner advocated for allowing individuals the freedom to choose a payout plan extending to age 85, expressing concerns that forcing lifetime annuities may be driven by commercial incentives rather than the best interests of savers.