This election has forced a generational shift in German politics | Anke Hassel | The Guardianhttps://www.theguardian.com/commentisfree/2021/sep/30/election-generational-shift-german-politicsOn climate change, the FDP favour more market-based instruments, which the Greens do not oppose. Both would agree that Germany’s best contribution towards solving the climate crisis would be to become a leader in climate-friendly technologies, provided by the highly successful German Mittelstand of small and medium-sized businesses and the country’s engineering base.
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Austere fiscal policy and balanced budget rules will constrain public investment in innovation and necessary infrastructure. The three parties will have to come up with new ideas to mobilise public investment, either through an investment fund or through the reallocation of existing subsidies for new investment.
Market solutions for fighting climate change are likely to exacerbate social inequality and might drive up prices for mobility and housing. Germany fears popular discontent against climate policies if incomes are affected. Finding mechanisms to compensate lower-income households for the higher costs that climate policies will incur is a policy priority.