Lindner calls for reforms – also in Germany's financial sector
During his visit to London, Federal Finance Minister Christian Lindner (FDP) expressed confidence in the German economy but also called for reforms from the coalition government in Berlin. "Germany is not the illness stricken man of Europe," Lindner stated to the press in London. However, he noted that Germany has lost with regard to competitiveness. He had earlier held discussions with representatives of German companies, financial institutions, and investors in the UK. Lindner identified high tax rates, energy costs, and regulatory burdens as causes of the economic situation.
Lindner's reform program focuses on providing incentives for investors, particularly addressing labor market issues, bureaucracy, energy, public infrastructure, and tax conditions. He admitted self-critically that while the federal government is "endeavoring", there is room for improvement in "pace and ambition." In addition, Lindner announced intentions to reach an agreement with his cabinet colleague Robert Habeck (Green Party) on a stimulus program for the German economy during the preparation of the 2025 federal budget.
Ambitions for the financial sector
Regarding defense spending, Lindner expressed skepticism about CDU demands for an increase in the Bundeswehr special fund during his visit to Dublin. He argued that more funding for defense expenditures should be achieved through strengthening economic dynamism. Lindner emphasized that a permanent financing of national and alliance defense is "absolutely possible" if the economy returns to a path of success. Nonetheless, he cautioned that additional permanent structural spending in the budget could make it difficult to meet the two-percent target for defense spending.
Lindner also expressed ambitions for the domestic financial sector. "I see a need to strengthen the financial center of Germany." In competition with London and within the EU, Germany has the potential to improve. Lindner pointed out two initiatives of the federal government: The mobilization of investment capital, including from capital pools, should be strengthened. Additionally, discussions with foreign banks are underway to reduce regulatory and administrative barriers, making the financial center of Germany, especially Frankfurt, more attractive.
Joint initiatives wherever possible
Lindner's visit to London included a meeting with his counterpart Jeremy Hunt. "The distance between London and Berlin and the European Union must not become greater due to Brexit than it is geographically", Lindner stressed. He underscored the shared values and interests between Germany and the UK and expressed the intention for both countries to continue to take joint initiatives wherever possible. A joint financial dialogue has already been initiated.