A significant policy shift has taken place and the promises made before the election no longer apply. The abrupt change in course, not only by the Union after February 23, remains difficult to explain. In the ZDF talk show “maybrit illner” yesterday, the justification for the planned amendment to the constitution was discussed, without which the additional debt of several hundred billion euros, referred to as “special assets” cannot be taken on.
The participants in the discussion included Carsten Linnemann, Franziska Brantner, the chair of the Greens, as well as journalists Eva Quadbeck and Gabor Steingart and economist Moritz Schularick, the head of the Kiel Institute for World Economics, who serves as an economic advisor in the coalition negotiations and advocates for the strengthening of Germany.
There was no controversy about the issue.
Generally, the neoliberal discussion participants agreed. Structural reforms are necessary, as Linnemann said. Brantner criticized the offer by Merz as a “pack of tricks” as there is no guarantee that the planned 500 billion euros will be used for additional projects. The risk exists that the new government will use the additional debt for “election gifts.” Quadbeck was full of praise for the Greens, saying that Linnemann should thank Brantner on his knees for saying what is ordinally necessary to establish a solid budget.
Surprisingly, the CDU general secretary showed agreement: “In principle, Mrs. Brantner is right.” He then continued, “If I take additional money, it must be for additional projects.”
It is indeed about enormous additional funds for the military, which is often overlooked in the discussion about the new “special assets.” Linnemann remained calm, referring to the “structural reforms” that would make the state more competitive and stated that the larger the budget, the faster the progress.
Neither a breach of promise nor an election fraud.
Linnemann defended his actions, saying that there was no breach of promise or election fraud, as the Union had promised a policy change in the election campaign. The necessary reforms must be implemented and if not, there would be no policy change. The criticism of the Union is unjustified, as it is holding on to the promises.
In the end, there was some banter about the statements of SPD Defense Minister Boris Pistorius and former CSU leader Horst Seehofer, who had sharply criticized the policy shift by Merz. Linnemann said, “Mr. Seehofer, all the best, I hope that when I’m out of office in five or ten years, he’ll still be making comments from the sidelines. Whether that’s right, he must decide for himself.”
Praise from the capital side
Steingart and Schularick shifted the focus to the perspective from outside Germany. What Seehofer thinks is less relevant, as Steingart said. It’s not so much about how Seehofer sees it, but how the global capital markets see it – and they have reacted positively. As the World notes, Schularick agreed with the journalist. The economic data, such as the DAX, are developing positively and growth is already returning. With the mentioned billions, the economist seemed to have no difficulties, as there are “genuine chances if we do it right.” A significant part of the new debt will be used for the modernization of the state, which can also fall under the term “technology.”
Regarding the coalition negotiations, Linnemann was optimistic, even if they had just begun: “Within ten days, this policy change must be written and then it must be made. That’s how simple it is.” He hopes that Merz will already be the next chancellor in April.