London Daily

Focus on the big picture.
Tuesday, Sep 16, 2025

Olaf Scholz still says ‘nein’ after his party hints at new EU debt

Olaf Scholz still says ‘nein’ after his party hints at new EU debt

German Social Democrats are open to examining new joint EU financing instruments, but the chancellor is reluctant.
Although Olaf Scholz's own Social Democrats may be opening the door to more common EU funding, the German chancellor is still giving the idea the cold shoulder.

A new paper from the Social Democratic Party's parliamentary group, adopted at a party leadership meeting on Thursday, urges the European Union to loosen its state aid rules in response to a recent U.S. subsidy push. Notably, the memo also cautiously raises a controversial idea: New joint EU debt to buoy local industry.

"Additional joint financing instruments must also be constructively examined,” the position paper reads.

Yet when asked by POLITICO whether Scholz backs any new debt proposals, a government spokesperson issued a swift denial, pointing to remarks the chancellor made last fall praising the EU's already existing funds, designed to help companies bounce back from the coronavirus crisis and ditch Russian energy.

He called those two funds "exactly the signal you need in this situation," suggesting that no further financing instruments are needed.

"Beyond that, there is no new position," the government spokesperson said.

While Scholz may not be budging, he's still under mounting pressure on the subject. Other countries like Italy, France and Spain have long been urging Berlin to allow more joint EU debt as a way to balance out economic and financial inequalities across the bloc.

Germany has faced particular scrutiny because, as the bloc's largest economic power, it has been able to dole out large financial support measures for its industries and citizens, such as a €200 billion relief package amid the current energy crisis. Germany has also requested nearly half of the around €540 billion in state aid money the EU approved last year.

Many EU countries including Spain argue that without new joint financing mechanisms, the EU's single market will become increasingly distorted because rich countries like Germany can afford subsidies for their industries, for example when it comes to boosting future green industry, whereas others cannot. Such criticism asserts that existing EU funds are not sufficient to address that imbalance.

However, Scholz's room for maneuver on new EU debt issuance is limited by the current German government coalition, in which the fiscally restrictive Free Democratic Party under Christian Lindner holds the Finance Ministry.

Lindner's ministry declined to give a response to the Social Democratic Party paper, saying: "We, as the Federal Ministry of Finance, do not comment on papers from the political arena as a matter of principle."
Newsletter

Related Articles

0:00
0:00
Close
China Finds Nvidia Violated Antitrust Laws in Mellanox Deal, Deepens Trade Tensions with US
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
×