On October 23, 2024, the BMW Center for German and European Studies was pleased to have Christian Lindner, Germany’s Federal Minister of Finance and Chairman of the Free Democratic Party, speak before an audience of students. In the conversation led by CGES Director Abe Newman, Lindner discussed the critical transatlantic economic partnership, the Draghi report, right-wing populism in Germany, and emphasized the need for collaboration between the United States and Europe. Students asked him a variety of questions concerning extremism, the wars in Ukraine and Gaza, and European Union economic policy.
The conversation began with Mario Draghi’s September 2024 report on European economic competitiveness. Lindner doubts that the European Union’s economy requires more than 800 billion Euros annually of investment as the Draghi report suggests.
“I don’t think we need more public sector subsidies paid by the taxpayer. We have already a huge amount of money on the table, so we shouldn’t spend more, but better,” he said.
He continued by stating his preference for private sector investment over the public sector, and describing how he stands in opposition to common European bonds and mutualization of debt.
“In my view, the businesses, the financial sector, is completely over-regulated in the European Union and this is why we have too little dynamism. And Mario Draghi has emphasized we need to cut red tape,” Lindner said.
Lindner wants more economic cooperation among democracies, especially with respect to low-income countries.
“On the geostrategical perspective, I’m advocating for a league of democracies which share the same values and the same interest, and those democracies should strengthen their ties and intensify their trade relations. This includes not only the US and European Union but others like the Canadians, South Korea, of course, Japan and others,” he said.
Lindner believes that uniting these countries would bring about economic growth and security.
“We benefit from competition and cooperation, and we would both get harmed by fragmentation,” Lindner said, speaking about democracies around the world.
He also believes that there must be an ongoing dialogue about trade policy and that European countries must become more competitive in order to be an attractive trade partner for the United States. China plays a critical role in the partnership.
“I can understand the American policies towards China because we have an over-dependency when it comes to the Chinese markets,” he said. “It would not be in the American interest if the European Union becomes the negative side effect of the US-Chinese relationship.”
Director Newman described Secretary Yellen’s recent criticism of China’s overcapacity and its involvement in the bad debt of developing countries. He asked Lindner what role Europe plays when it comes to mediation or joining forces in the confrontation between the US and China. Lindner once again emphasized his ideals of competition and cooperation.
“It is necessary to see the ambivalence of competition and cooperation. Competition is a driver for innovation and prosperity, and a competitive China poses a challenge for us, but we can benefit from it,” he said.
He stressed the importance of cooperation in the ongoing fight to address the climate crisis. Fragmentation poses a threat to those policies aimed at protecting the environment.
“Cooperation means not to agree on everything, but on the underlying set of rules. And this is my problem with fragmentation. Fragmentation would mean no competition, which leads to progress, innovation, prosperity, and no agreement on underlying rules,” Lindner said. “So this is why I think fragmentation of the global economy and geopolitical fragmentation is a threat for mankind because it would stop all common efforts.”
Lindner then answered many questions from the audience. One German student asked Lindner about the rising ambivalence concerning support of Ukraine and Israel in Germany – a byproduct of growing political extremism in the country.
“Both are democracies, and democracies support each other. This is the first symptom of a crisis of democracy: when the will to support other democracies is decreasing,” he said.
Lindner expressed his concern that the rising populist movement in Germany would influence the political coordinates of Germany’s mainstream parties. He believes that politicians must address the core motivations that lead voters to vote for these far-right parties. In his view, the main concerns of the German people are the economy, migration policy, and freedom of expression.
“My answer would be to address those needs. So bring the German economy back on track, and we should not forget the working population, because they have the impression that established parties and government are only working for people in need, for the welfare state,” he said.