German finance minister sees higher mid-term growth, pledges to counter far-right rise

By Victoria Waldersee

DAVOS, Switzerland (Reuters) – Germany’s finance minister predicted a higher level of growth in the mid-term in Germany and said his party would counter the rise of the far right by tackling the problems that strengthened it, speaking to Reuters in an interview on Thursday.

The German economy contracted by 0.3% in 2023, due to persistent inflation, high energy prices and weak foreign demand.

Looking ahead, at least in the first months of 2024, many of the recent drags on growth will still be around and will, in some cases, have an even stronger impact than in 2023.

Christian Lindner welcomed the German parliament’s decision earlier in the day that the country does not need to suspend its brake on raising debt, and said he could currently not envisage a situation where that would be necessary.

“I can currently not imagine anything that would justify that,” he said in an interview on the sidelines of the World Economic Forum in Davos.

Asked about the rise in popularity of Germany’s far right party Alternative for Germany (AfD), Lindner said it was important to look at the trigger points that boosted the party’s support and counter them.

“The best way to make right-wing populists who have become big small again is to make the problems that strengthened the party small,” Lindner said, listing foreign policy failings, overly detailed bureaucracy, and unaffordable energy prices.

Lindner said he was concerned that a party that was fueled by resentment and proposed taking Germany out of the EU – a move he dubbed more dangerous for Germany than Brexit – was rising in the polls.

“But the great consensus in our society is that the values that are in our constitution are sacred to us and they are defended by the vast majority of the citizens of our country.”