Scholz Navigates Economic Policy Rift in Germany's Coalition Government

German Chancellor Olaf Scholz faces internal conflict within his coalition as Finance Minister Christian Lindner and Economy Minister Robert Habeck propose conflicting economic measures. Scholz is set to meet both ministers to discuss potential compromises, as divisions over Germany's economic policy strain the coalition ahead of forthcoming elections.

German Chancellor Olaf Scholz is set to mediate between his finance and economy ministers to resolve their opposing economic strategies. A leaked document from Finance Minister Christian Lindner emphasizing tax cuts and fiscal discipline contrasts with Economy Minister Robert Habeck's multibillion-euro investment plan.

This discord has fueled ongoing disputes among the FDP, Greens, and Social Democrats within Scholz's coalition, raising concerns about its stability before the upcoming elections. Government sources indicate that several meetings are planned to find a harmonious approach.

The disagreement highlights broader economic challenges in Germany as the coalition seeks solutions to boost growth and industrial jobs amid worsening economic conditions. SPD leader Lars Klingbeil expressed partial agreement with Lindner's tax proposals while criticizing others as incompatible with SPD's approach.

(With inputs from agencies.)