A simmering conflict over resource allocation is threatening to paralyze Germany’s ruling coalition and erode public trust, according to Marcel Fratzscher, president of the prestigious German Institute for Economic Research (DIW). Fratzscher issued a stark warning, urging the “troika” of governing parties – the Social Democrats (SPD), the Greens and the Free Democratic Party (FDP) – to cease the increasingly public disputes over social and pension policy.
The current tension stems from recent proposals, notably those advanced by CDU parliamentarian Andreas Mattfeldt advocating for enhanced pension benefits for skilled tradespeople. While seemingly a localized issue, Mattfeldt’s suggestion has ignited a broader struggle within the government, reflecting a growing recognition that Germany will need to implement austerity measures in the coming years.
“A distribution struggle is increasingly flaring up in German politics” Fratzscher stated in an interview with the Rheinische Post. “All three governing parties appear to be prioritizing the support of their respective constituencies within this competition, further complicating the already challenging economic landscape.
The economist expressed deep concern that the internal bickering is escalating and damaging the government’s ability to address pressing issues. He emphasized that this infighting not only creates policy gridlock but also actively undermines public confidence in the nation’s leadership. The perception of a government more focused on partisan maneuvering than on serving the national interest risks long-term political repercussions.
Observers note that the underlying problem isn’t simply the specific proposals at issue, but a broader failure to develop a coherent and consensus-driven strategy for managing Germany’s economic future, particularly in the context of rising global uncertainty and shifting geopolitical realities. Fratzscher’s plea for an immediate cessation of the internal power struggles underscores the urgency of the situation and the potential for serious damage if the crisis is left unaddressed.