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Back|Political and economic developments in Germany
Political and economic developments in Germany
Developing
Handelsblatt·44 minutes ago·Politics·6 min read·🇩🇪Germany·

Political and economic developments in Germany

Criticism of the federal government, AfD measures and debates about reforms

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German federal politics in focus: Söder warns of government disruption, Merz rejects minority government, debates about tax reforms, defense spending and rising energy prices as well as requirements for the AfD streamer “Activist Mann”.

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Why It Matters

Current political debates in the black-red coalition and discussions about how to deal with the AfD.

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AfD leadership decides on requirements for streamer “Activist Mann”

The AfD imposes conditions on a video streamer close to it that sparked discussions around the state election campaign in Saxony-Anhalt. The YouTuber, who appears under the name “Activist Mann,” should therefore only have access to party events if he “makes a binding commitment in advance not to harass other streamers and journalists,” according to a decision made by the party’s federal executive board at the beginning of the week. If “Activist Mann” does not stick to such a promise, he is threatened with expulsion from relevant events.

The editorial network Germany (RND) first reported on the decision. Accordingly, the board voted unanimously. “T-Online” reported on the motion for resolution on Sunday, in its justification it was stated that the streamer was obviously pursuing the business model of “showcasing journalists who were seen critically in the AfD environment through harassing questions and vulgar behavior.” This behavior “does not correspond to the desired standard of behavior of our party”, but is now attributed to the AfD.

Söder and Kretschmer warn that the government will fail

In view of the current debate about the future of Chancellor Friedrich Merz (CDU), CSU boss Markus Söder has warned that the federal government will fail. “And it would be a disaster if, after the traffic light failed, the next democratic government failed shortly afterwards after a shorter period of time,” said the Bavarian Prime Minister before the start of a meeting of the CSU board in Munich. “So there is no better invitation, a penalty without a goalkeeper for the AfD.”

Speculation about minority government rejected

A spokesman for the federal government has rejected speculation about a possible minority government of the Union under Chancellor Friedrich Merz (CDU) as “completely out of thin air”. “The Chancellor wants to implement the agreed reforms in the coalition as quickly as possible and expects discipline and stability from everyone,” said the spokesman for the German Press Agency.

The “Zeit” had previously reported, citing several sources close to the Chancellor, that a minority government was “at least being considered” as a scenario. After that, the Chancellor, who has been under massive pressure since the election debacle, could dismiss Labor Minister Bärbel Bas (SPD) from the cabinet, which would mean the certain end of the black-red coalition. Then, as the scenario is further described in the report, he could continue with a minority government and seek a majority for his reforms in the Bundestag - if necessary also from the AfD.

"A minority government is not an option for me. And I will not accept it. And I will not trigger it," said Merz in May in response to speculation that first arose at the time. He added that no one should dream of new elections, which in his opinion would lead to Germany being largely unable to act. “Does anyone seriously believe that a country in an election campaign in the midst of such an economic crisis can make the necessary decisions that we need now?”

Hubig wants to punish rent control violations more severely

Federal Justice Minister Stefanie Hubig (SPD) wants to improve the effectiveness of the rent cap. “Gaps in tenancy law” should be closed, Hubig told the Funke media group. "My goal is that we make the rent control really strict. If the landlord is currently violating the rent control, he only has to refund the excess money to the tenant. That's not enough."

She was of the opinion that the rent control was effective, as several studies had shown. "But there are still too many ways to override the rent cap. This particularly affects short-term rentals and furnished apartments. My draft law on this is currently being discussed in the Bundestag."

However, the rent control is not a panacea. “We simply need more affordable housing,” said the Justice Minister. Hubig rejected the expropriation of large housing companies, as demanded by the Left Party in Berlin. "An expropriation of large companies costs a lot and achieves little. Instead, we must ensure that investments are made in new housing."

Klingbeil criticizes the CDU attack on Bas: “What’s the point of that?”

SPD leader Lars Klingbeil reacted in dismay to a violent attack on his co-party leader Bärbel Bas from the ranks of the Union. "What's the point? We're in damn difficult times. We have to stick together in a government," said the Finance Minister and Vice Chancellor in Celle, Lower Saxony.

Klingbeil was referring to statements by the chairman of the influential middle class parliamentary group (PKM) in the Union faction, Christian von Stetten. “The minister is no longer sustainable,” the CDU MP told “Bild” about Federal Labor Minister Bas. “For months she has been blocking the reforms that our country so urgently needs.” Klingbeil did not mention von Stetten’s name, but mentioned the “Bild” article.

Wüst explains his personal stance on the AfD ban

On the question of an AfD ban, North Rhine-Westphalia's Prime Minister Hendrik Wüst has reiterated his call for a federal-state working group. Such a group is needed "that collects verifiable evidence, what kind of party is that? We have to do that first," answered Wüst in Lehrte near Hanover in response to an audience question at a CDU event before the Lower Saxony local elections. So far there is no such common collection, and “different legal consequences” could result.

"My personal position, but setting that aside, is: If in the end it is enough to ban a party because its aggressive and combative attitude endangers our free democratic basic order, then I say, I read that as an order to act. If a party is able to unhinge this constitution through its aggressive and combative attitude, then I have to protect this constitution. I took an oath of office on it."

The federal and state governments want to reduce construction costs

The federal and state governments want construction costs in Germany to fall. The ministers see the high costs as an obstacle to more apartments and affordable rents, as they made clear after the 149th Conference of Construction Ministers in Berlin. Federal Construction Minister Verena Hubertz (SPD) called affordable housing “one of the most pressing questions of our time”.

The federal and state governments signed an agreement for a common “cost-reduced construction” platform. Successful approaches to affordable construction in individual countries should become more widely known and disseminated.

Union faction leader Frei: There was a lack of clarity

After his party's disaster and the high AfD victory in the state elections in Saxony-Anhalt, Union parliamentary group leader Thorsten Frei admitted mistakes in communicating the coalition's policies. In the past few months there has been a “lack of this clarity and this determination, which would ultimately be convincing for people,” said the CDU politician in Berlin at an event organized by the CDU-affiliated Konrad Adenauer Foundation.

Populism is not the right answer, said Frei, without naming the AfD. But what is needed “is not just determination, but also clarity in what we do.” This means that political content is agreed upon and then implemented.

Bundestag lifts immunity of AfD MP Brandner

The Bundestag has lifted the immunity of AfD MP Stephan Brandner. Parliament thus approved the conduct of criminal proceedings against Brandner with the majority of all other parliamentary groups. The AfD parliamentary group voted against it, as the Bundestag announced. There was no discussion. Brandner is also the parliamentary manager of his parliamentary group.

The Thuringian Bundestag member wrote on platform

Linnemann wants more efficiency in the health system

Federal Health Minister Carsten Linnemann is striving for more efficiency in medical care and nursing. “We spend a lot of money on health and in too many places we don’t get the care that people rightly expect,” said the CDU politician in his first speech as health minister in the Bundestag. Expenditures would have to be adjusted to income in order to keep the contribution development in check. “In my opinion, the contributions will actually have to decrease in the future.”

When it comes to nursing care insurance, the financial situation is “disastrous,” said Linnemann. With regard to the reform planned by the coalition in the fall, he explained: "It's not enough to just plug the next hole. We basically have to get to work on the structures." Of course you can't avoid making savings, but you'll still need a reliable care system in the future.

Dobrindt: We have to expect an attack scenario every day

Interior Minister Alexander Dobrindt expects that saboteurs and so-called disposable agents from Russia will try to attack further targets in Germany. “We have to continue to expect an attack scenario in Germany every day,” said Dobrindt after a special meeting of the Interior Committee on the so-called hybrid threat situation.

Hybrid warfare is a combination of military, economic, intelligence and propaganda means. This also includes cyber attacks and influencing public opinion - for example before elections. Most attempts are made to conceal the authorship of such actions.

Bilger plans to invest in highways with private capital from 2027

The new Federal Transport Minister Steffen Bilger wants to expand road construction by raising private funds. From 2027 onwards, additional investments and construction work on the motorways should be undertaken, government circles said on Thursday. At the center of the plans is Autobahn GmbH. She should be able to take out loans in the future, for which she needs her own income as a prerequisite. These should flow to her from the truck toll and she should get a part of it.

CDU politician Bilger had already outlined the plans in the Bundestag this week. Accordingly, a corresponding draft law should be passed by the cabinet in the fall. The aim is to provide reliable financing for the road over the years. Autobahn GmbH's own budget should be used to finance maintenance, planning, operation and expansion.

NATO boss Rutte praises Germany for building up its defense capabilities

NATO Secretary General Mark Rutte praised Germany as a driving force in expanding Europe's defense capabilities and warned of a continuing threat from Russia. In a speech at the end of the ambassadors' conference at the Foreign Office in Berlin on Thursday, Rutte praised the federal government's decision to spend a total of 3.5 percent of gross domestic product (GDP) on defense by 2029. Germany spends the most on defense in Europe and is a driver of arms production. “You shifted into sixth gear when it came to defense,” said Rutte.

Dealing with the AfD: Merz relies on political debate instead of ban proceedings

On Wednesday, Chancellor Merz expressed skepticism about the prospects of success of a possible ban on the AfD. In addition, a ban would not solve the reasons for the party's popularity anyway, he said.

Blatt: Around 20 Union MPs want to vote against tax plans

According to a newspaper report, resistance to the federal government's tax plans is forming in the CDU/CSU parliamentary group. Around 20 members of the Union did not want to agree to the project, the “Bild” newspaper (Thursday edition) reported in advance, citing faction circles. On Tuesday, all twelve members of the agriculture working group spoke out against the planned introduction of a sugar tax. The reason given was that tax increases had been excluded in the coalition agreement. There is also criticism in the finance working group. Many members refused to only partially reduce the so-called cold progression in the coming year and called for full compensation.

Radtke: No microscopic relief from tax reform

The head of the CDU employee wing CDA, Dennis Radtke, is calling for the planned tax reform to provide citizens with significantly greater relief than previously planned. “Unfortunately, the plans fall far short of what would be necessary to relieve the burden on citizens and companies,” Radtke told the “Rheinische Post”. “We don’t just need microscopic relief that can only be guessed at,” he warned.

Last week, the federal cabinet launched the black-red coalition's income tax reform. The draft by Finance Minister Lars Klingbeil (SPD) provides relief that should amount to ten billion euros annually from 2028. Small and medium income earners and families with children in particular should benefit.

Greens on high fuel prices: Chancellor is letting people down

Against the backdrop of continued rising oil prices, Green Party deputy Andreas Audretsch accuses the federal government of inaction. “Oil companies are currently doubling, tripling or quintupling their profits – at the expense of everyone who has to refuel,” the Green politician told the editorial network Germany (RND). "Germany urgently needs an excess profits tax so that corporations don't continue to use the wars to drive up prices. Friedrich Merz simply says no, without a suggestion or solution, and is letting people down." The price for a barrel of the reference Brent variety from the North Sea passed the $100 mark on Wednesday. Refined products such as diesel rose even more as the conflict in the Middle East spread to the Red Sea near Saudi Arabia.

Energy prices drive up inflation

With the Iran war and high energy prices, the inflation rate in Germany is rising again.

What to Watch

AI outlook — possibilities, not facts

  • Draft law on highway financing passed in the cabinet in the fall

    Likely · Within months

Open Questions

  • ?Will the black-red coalition continue?
  • ?How much will energy prices continue to rise?

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This article was originally published by Handelsblatt.

Quick Look

German federal politics in focus: Söder warns of government disruption, Merz rejects minority government, debates about tax reforms, defense spending and rising energy prices as well as requirements for the AfD streamer “Activist Mann”.

AI-generated summary

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44 minutes ago
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cdu
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Luke Bay
Felix Stippler
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