Discord Brews in Germany’s Coalition Over Competing Economic Summits

Germany's coalition government shows signs of discord as the FDP, led by Finance Minister Christian Lindner, organizes its own economic summit coinciding with Chancellor Olaf Scholz's meeting with business groups. The summit focuses on small- and medium-sized businesses amid concerns about Germany's weak economic outlook and upcoming 2025 elections.

The Free Democrats (FDP), led by German Finance Minister Christian Lindner, are setting up an economic summit mirroring Chancellor Olaf Scholz's gathering with business figures. Both events, occurring next Tuesday, lay bare internal tensions as coalition partners struggle with differing economic strategies approaching the 2025 elections.

Despite apparent cooperation, discrepancies are emerging. Economic Minister Robert Habeck, anticipated to run as the Greens' candidate, earlier unveiled his economic strategy without consulting Lindner, underscoring the coalition's fragility. This lack of communication, Lindner suggests, stokes uncertainty, although he is keen to preserve government stability.

The economic outlook for 2024 hints at further decline, with an expected contraction of 0.2%. While Scholz's meeting will focus on broader industry issues, the FDP event will engage smaller businesses and trade associations, signaling differing priorities within Germany's ruling coalition.

(With inputs from agencies.)