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Germany's Scholz Summons Top Ministers over Rival Plans to Fix Economy

FILE PHOTO: German Chancellor Olaf Scholz attends a press conference in Brussels, Belgium October 17, 2024. REUTERS/Johanna Geron/File Photo
FILE PHOTO: German Chancellor Olaf Scholz attends a press conference in Brussels, Belgium October 17, 2024. REUTERS/Johanna Geron/File Photo
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Germany's Scholz Summons Top Ministers over Rival Plans to Fix Economy

FILE PHOTO: German Chancellor Olaf Scholz attends a press conference in Brussels, Belgium October 17, 2024. REUTERS/Johanna Geron/File Photo
FILE PHOTO: German Chancellor Olaf Scholz attends a press conference in Brussels, Belgium October 17, 2024. REUTERS/Johanna Geron/File Photo

German Chancellor Olaf Scholz will hold meetings with his top two ministers to try to find common ground after they put forward contradictory plans to fix the nation's ailing economy, a government source told Reuters on Sunday.
A document leaked by Christian Lindner's finance ministry raised eyebrows in Berlin last week, with its push for tax cuts and fiscal discipline widely interpreted as a challenge to the multibillion-euro investment plan put forward by Economy Minister Robert Habeck just days earlier.
The stand-off is the latest escalation in a row over economic and industrial policy between the FDP, the Greens and Scholz's Social Democrats that has fuelled speculation of the coalition's potential collapse, less than a year before elections are due.
But a government source told Reuters that Scholz and the ministers would hold several meetings in the coming days, saying that "now that everyone has submitted their paper, we have to see how they fit with each other."
A worsening business outlook in Europe's largest economy has widened divisions in Scholz's ideologically disparate coalition over policy measures to drive growth, protect industrial jobs, and reinforce Germany’s position as a global industrial hub.
While Habeck wants the creation of a fund to stimulate investment and to get around Germany's strict fiscal spending rules, Lindner advocates tax cuts to spur the economy and an immediate halt on all new regulation.
SPD leader Lars Klingbeil signalled openness to discussing Lindner's proposals in a local newspaper interview, but said that some of them were untenable for his party, which released its own economic plan earlier in October.
"Giving more to the rich, letting employees work longer and sending them into retirement later - it will come as no surprise to anyone that we think this is the wrong approach," Klingbeil told the Augsburger Allgemeine newspaper.

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Kazakhstan Anticipates Completion of ACWA Power’s Wind Energy Project

ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)
ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)
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Kazakhstan Anticipates Completion of ACWA Power’s Wind Energy Project

ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)
ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)

Kazakh Ambassador to Saudi Arabia, Madiyar Menilbekov, announced that his country eagerly anticipates the completion of ACWA Power’s first wind energy project in the Zhetysu region. This project, led by the Saudi company, will have a total capacity of 1 gigawatt and an investment value of approximately $1.5 billion.
ACWA Power announced last March that it would execute this project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. Construction is expected to commence in the summer of 2025.
Menilbekov told Asharq Al-Awsat that both countries “have established a solid political dialogue at a high level, along with cooperation in trade, economics, culture, and parliamentary exchange.” He expects this high-level dialogue to continue at the upcoming COP 16 summit in Riyadh.
He further emphasized that trade, economic, and investment cooperation is the cornerstone of the bilateral relationship, noting: “Both countries share a similar outlook on economic development, reflected in Kazakhstan’s Strategic Program 2050 and Saudi Arabia’s Vision 2030.”
The Kazakh ambassador highlighted that last September, the Islamic Development Bank approved financing for projects in Kazakhstan focused on water resource development, enhancing agricultural productivity, and ensuring food security, with total allocations amounting to $1.153 billion.
In tourism, he noted significant progress toward establishing direct flights between the two countries. Air Astana launched flights between Shymkent and Jeddah in October and announced a route from Almaty to Medina, bringing the total to six direct flights. Additionally, Kazakh companies in construction, oil services, and IT have recently opened offices across Saudi Arabia. The Farabi Innovation Center was inaugurated in Riyadh to attract talented entrepreneurs and innovative startups from Nur-Sultan and Central Asia to the Kingdom.
Menilbekov explained that since gaining independence, Kazakhstan’s GDP has grown 17-fold, with foreign trade reaching $139.8 billion last year. He added: “Since 1993, Kazakhstan has attracted a total of $441 billion in foreign direct investment, allowing our economy to remain one of the most dynamic in Central Asia and the post-Soviet region.”
According to Menilbekov, Kazakhstan is the world’s largest producer and exporter of natural uranium, responsible for more than 45% of global production and exports. He also noted that Kazakhstan produces 18 of the 34 raw materials identified by the European Union as “critical materials.”
Menilbekov further mentioned that Kazakhstan possesses 200 million hectares of agricultural land, with about 100 million hectares currently under regular cultivation.