24 July 2013

FDP/Brüderle attaches conditions to continuation of governing coalition

In an interview with Handelsblatt, Rainer Brüderle, Parliamentary faction chairman of the FDP, said that a continuation of the present coalition after the elections would only work without the higher taxes and debt levels proposed by the CDU.

Translated from the German

The CDU has promised boons with a total value of approximately €30 billion. Your FDP, however, does not want to raise debt levels and increase taxes. How does that that fit together?

We are in the middle of an election campaign and state as independent parties what we think is right. After the elections we can then talk about a coalition agreement. It is obvious, however, that we need to budget carefully. We are in a difficult phase: Germany is in a good position, but Europe as a whole is not yet out of the woods. At the same time other nations, such as China, Russia, India and Brazil have developed rapidly. Germany cannot always respond to these new challenges with new benefits for its citizens.

The crisis in southern Europe might mean financial burdens for Germany which are difficult to influence directly. How serious is the situation in the crisis countries? 

We have come a long way, but we are not out of the woods yet. We must stick to one principle: We help and the aid recipient in turn has a duty to do everything in their power to eliminate the causes of their misery.

The European Central Bank keeps getting involved as the ultimate saviour. How do you assess its role?

I see its role as rather ambiguous. The ECB is going to the limits of what is within their scope of action under their mandate. State funding by printing money and the purchase of bonds must not become a regular occurance.

The debt crisis has reached the core of the eurozone. How do you assess the situation in France? 

France worries me. In my opinion, what the government in Paris is doing is fundamentally wrong. They could have announed the economic downturn in the same breath as they introduced their massive tax increases. The crisis in other states is still somehow manageable, but if France struggled to get back on its feet, that would indeed be a tragedy. France is our most important European ally and partner. France is essential. 

Do we need more Europe and do we need Banking Union?

Yes, but we cannot act as guarantor for the rest of Europe. We must take one step after another and need to end up with a banking supervision that has clear-cut rights and competences. We do not want a debating club, but an independent European institution that has the power to close and resolve a bank should this become necessary.

Do we need a two-speed Europe?

A Europe of two different speeds already exists and the divergence will increase further in the future. It is all the more important that no-one feels left behind. Bigger states have to behave respectfully towards their smaller partners - Europe is nothing if not everyone feels accepted and comfortable.

Full interview (in German)

© FDP-Bundestagsfraktion