Lindner's proposals include abolishing the solidarity surcharge and imposing a moratorium on new regulations and bureaucracy, aiming to address budget gaps for 2025 without raising taxes.

He has suggested reducing social benefits for asylum seekers to enhance work incentives, emphasizing that the responsibility lies with others to justify their lack of economic recovery proposals.

In response, SPD leader Lars Klingbeil highlighted the need for reforms that alleviate burdens on the working middle class rather than benefiting the wealthy, while also calling for reduced bureaucracy and improved education.

Lindner's plan includes cuts to the Bürgergeld (citizen's income) and changes to housing cost regulations, targeting an overall reduction of €2 billion in social spending.

However, the SPD opposes broad corporate tax reductions, advocating instead for targeted tax incentives linked to investments in future industries and job creation.

Habeck has also stressed the urgent need for reforms to enhance Germany's competitiveness as a tax location and to address the unsustainable dynamics of social insurance costs.

The coalition's proposed measures, including substantial subsidies to lower electricity prices, aim to provide relief for families, low-income earners, and retirees, potentially benefiting a four-member family by €300 by 2025.

Despite these discussions, the coalition's ability to implement effective governance remains in question, with critics arguing that rising social contributions could negate any tax benefits if reforms are not enacted.

As the coalition navigates these challenges, Lindner and his partners are focused on maintaining their presence in the Bundestag, particularly with upcoming elections, including the Hamburg election in March 2025.

Overall, while the German economy saw slight growth of 0.2% in the third quarter of 2024, the Bundesbank continues to describe it as being in a 'weak phase' since 2022, underscoring the urgency for effective policy action.

On November 1, 2024, German Finance Minister Christian Lindner unveiled a contentious economic paper titled 'Wirtschaftswende Deutschland,' which seeks to overhaul climate, economic, and labor market policies amid rising tensions within the coalition government of the FDP, SPD, and Greens.

Meanwhile, Green Party member Robert Habeck proposed a state investment and infrastructure fund to support businesses, particularly small and medium enterprises, with a 10% reimbursement on investments.