Former Federal Minister-President Peter Altmaier (CDU) has warned about a potential failure of the current federal government, led by Friedrich Merz (CDU), amidst heated debates over necessary reforms and relief measures. Speaking to the “Süddeutsche Zeitung” (Monday edition), Altmaier stated that the political situation is precarious. He warned that without major changes, Germany risks entering one of its most severe economic crises in decades, strengthening extremist parties, and descending into an inability to govern.
He noted a pervasive lack of crucial planning certainty for both businesses and consumers. While acknowledging that varying opinions emerged from recent discussions held at the Villa Borsig, Altmaier stressed that the public disputes and the manner in which politicians have treated each other have already created negative public reactions and significant credibility damage.
According to Altmaier, the most pressing issue is the widespread pessimism and fear sentiment currently gripping the economy, a level he has never witnessed before. He lamented that an initially praised investment boost has fizzled out, and the lingering impact of the Iran conflict raises the risk of further deterioration. He asserted that the economy needs a clear signal of revival for tradespeople, small and medium-sized enterprises, and industry. Specific measures he proposed include substantial cuts to corporate and income taxes, along with the abolition of the remaining “Soli” tax. Furthermore, Altmaier called for the burden of the twelve billion euros in health insurance costs for Basic Income recipients not to fall on the legally insured, but rather to be managed gradually through the federal budget.
Addressing a potential alternative discussed within the CDU coalition-a minority government without the Social Democratic Party (SPD)-the Saarländer, who also previously served as federal ministers for the Environment and Economy, emphatically rejected the idea. He argued that such a minority administration would not improve the situation but would make many things worse. “The minority government would be subject to blackmail from various sides, and the predictability and planifiability of political decisions would be completely compromised”. He warned that this instability would severely undermine international confidence in Germany, concluding that there is no good alternative for the current coalition, despite its mistakes. Nevertheless, he concluded with a strong caveat, advising that those involved must realize that the current trajectory will not generate the results the country desperately needs.
