Germany's Lindner plays down coalition breakup fears, hails ability to compromise

FILE PHOTO: Germany's Minister of Finance Christian Lindner speaks during a press conference during the G20 Finance Ministers and Central Banks Governors' meeting, in Sao Paulo, Brazil, February 29, 2024. REUTERS/Carla Carniel/File Photo

FRANKFURT - German Finance Minister Christian Lindner on Sunday evaded questions on whether his Free Democratic Party (FDP) was prepared to leave the country's ruling coalition over tough budget talks, saying the current government had always been able to reach compromise.

Some of Lindner's published comments in recent days as well as low ratings in current polls have fuelled speculation that Lindner may be playing with such an idea as calls for higher debt-funded public spending - something opposed by the FDP - grow.

The German government is preparing the budget for 2025 and the financial plan up to 2028.

"Of course, my goal is to present a good budget and also to achieve an economic turnaround in line with what we have described here today," Lindner told German broadcaster ARD after reiterating his warning of Germany's economic weakness.

Asked whether he would consider exiting the ruling coalition, which also includes the Social Democrats and the Greens, Lindner said only that this was not a question he would expect to become relevant.

"Because we are not dealing with gamblers here," he said.

Earlier this month, Lindner presented a new idea for how to free up more funds in Germany's tight budget negotiations, which have become a sore point as Europe's top economy struggles, prompting calls for more subsidies.

This involves spending up to 9 billion euros in additional defence funds from 2028, but only if Germany can reduce its debt levels by then.

While acknowledging that working in the current three-way alliance was challenging, he said it has always been possible to eventually reach a solution, adding he expected this to continue. REUTERS

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