Red Alert: Germany’s Coalition Teeters on Brink of Collapse as FDP Sounds Warning Bell

2:10 p.m: At a press conference in Berlin, SPD leader Saskia Esken showed her willingness to continue leading the government if the FDP left the traffic lights. When asked if she could imagine a red-green minority government, Esken said it was about taking responsibility for the country and setting the necessary framework conditions for the industry. “We as a social democracy, and especially our members of the government, are very ready to do this.”

12:31 pm: Government spokesman Steffen Hebestreit responded to speculation about the possible breakdown of the SPD, Greens and FDP coalition in a press conference with cautious optimism. Last Friday he said: “I don’t get the impression that anyone is about to get into trouble.” We will work together constructively until the normal election date in September 2025. When asked about this, he explains: “What I said on Friday is relevant. And basically, it good and right for everyone involved to continue to think about how to follow the policy they want to follow and get along with each other.”

In response to a question about the controversial points that a coalition committee planned for Wednesday is due to decide on, the spokesman replied that the Chancellor was involved in strengthening the German economy and securing jobs. “It is now a matter of completing the 2025 budget, parts of which have already been discussed,” he adds. Discussions are currently underway regarding this. The budget adjustment meeting is scheduled for Thursday next week, and we still need an answer by then. How this might look now is being discussed. “I think a lot of things are happening under a lot of pressure right now,” Hebestreit said.

Regarding the different concepts of the coalition partners, the spokesperson explains that there is a paper from the Federal Minister of Economics Robert Habeck (Greens), another paper from the Federal Minister of Finance Christian Lindner (FDP), ideas from the Chancellor and other ideas. Now it is about bringing these into harmony “so that it becomes a general concept that is workable for the three factions that support the coalition.”

12:29 pm: Chancellor Olaf Scholz (SPD) received Economy Minister Robert Habeck (Green) and Finance Minister Christian Lindner (FDP) for consultations in the Chancellor. According to information from Reuters, Habeck and Lindner arrived at the Chancellors at midday.