Germany’s governing coalition faces a growing risk of internal fracture and diminished public trust, according to Marcel Fratzscher, President of the prestigious German Institute for Economic Research (DIW). Fratzscher issued a stark warning, urging an immediate cessation to the increasingly acrimonious disputes over social welfare and pension policies that are fracturing the three-party alliance.
The simmering tensions were ignited by a recent proposal from CDU parliamentarian Andreas Mattfeldt, advocating for enhanced pension benefits for skilled tradespeople – a suggestion quickly amplified in the popular “Bild” newspaper. Fratzscher characterized Mattfeldt’s proposal as emblematic of a broader trend: “An escalating distribution struggle is emerging in German politics, as all actors now confront the reality that we’ll need to tighten our belts considerably in the years ahead”. He argued that each of the governing parties is increasingly driven to prioritize the interests of their respective political constituencies in this battle for resources.
The economist’s assessment depicts a scenario where internal disagreements are not only persistent but actively worsening. He expressed concern that the ongoing disputes are paralyzing government action and eroding public faith in the leadership. “The German government is most damaging itself through this distribution struggle, because it becomes incapacitated and continues to lose trust.
Fratzscher’s comments highlight a precarious political situation. The inability to forge consensus on essential social policy jeopardizes the government’s capacity to address pressing economic challenges and risks further destabilizing an already complex political landscape. The DIW’s head is effectively arguing that the coalition’s internal power struggles are outweighing the collective imperative of responsible governance, a critique that will likely intensify pressure on Chancellor Scholz and his cabinet to demonstrably improve internal cohesion.
