This entry was planned differently. Wittier, more sarcastic, and sharply commenting on the current budget situation of the German government. That Federal Chancellor Olaf Scholz (66), who presented the design at the press conference as a “successful work of art”, was intended to be a starting point for a few observations on the nature of art and performance art. The artistic achievement was obviously not yet complete with the presentation of the draft – the real-time performance of “Budget Draft 2025” continues, initially driven by Finance Minister Christian Lindner (45) and then interactively shaped by the media and politicians. That’s pretty much how I wanted to write it. But it doesn’t work anymore. The joke has played out and a certain level of bewilderment sets in.
The history of this budget draft is an exhaustive picture of the status of this legislature: the declaration of the draft process, which was otherwise negotiated at the working level, as a top priority, the lengthy negotiations, the full-throated press conference and the executive self-confidence. The following reports, their judgments, Christian Lindner’s aggressive distancing, the subsequent media back and forth and finally the demonstrative Chancellor’s power word. At the time of going to press, it is still unclear where all of this will lead and to what extent the whole project confirms the disillusionment with politics and the system that is likely to find expression in the state elections at the beginning of September.
For a digitalization and transformation column in a business magazine, all of this is not just relevant because the author is frustrated. It is relevant because it is again about leadership and decision-making skills in transformative times and at the highest levels. The dance around the budget and the state of the coalition are symbols of a general lack of courage and helplessness on the part of the decision-making bodies, which in times of fundamental transformation still do not know the answers to essential questions: Where do we want to go? Who do we want to be? How do we take advantage of the opportunities and minimize the risks of a world in transition along the way?
For how much longer?
In July, Scholz called what the draft stands for “both-and-politics,” and I wonder whether he realizes how much he is naming the problem. This budget draft wants to be everything for everyone, wants to wake up and at the same time calm down, wants to avoid disputes over direction and satisfy everyone, wants to finance and invest and not incur new debts. There is no discernible decision or prioritization here; The dispute over the direction in which the traffic light, which started as a “progress coalition”, has been in the middle for a good two years will not be resolved, but rather institutionalized. “If you order a tour from me, you will get it,” says your Chancellor, immersing himself in the little compromises of budget planning. How long is this going to last given the general challenges?
To become more business magazine-like again: quit at the end of June Volkswagen to pursue software innovation in the future in a joint venture with the US company Rivian. Almost at the same time, it was emphasized that hardware (and software) had been in China for some time strategic partnership with the local manufacturer XPeng
to develop. This is a big step for a company that has rightly placed a lot of emphasis on its hardware expertise for decades and that founded the Cariad corporate unit specifically for software.
Because ultimately there is a tragic message in it: We can’t do it. We know at least roughly where we need to go, but we are unable to adapt the paradigms of a new age on our own. Everything we try ends up being shaped by our traditional view of the world; Any energy for change can only fizzle out in our established processes; Our internal conflicts of interest make it impossible to make a real decision on direction. Someone else has to do it.
Lindner, Scholz and Economics Minister Robert Habeck (54) are not ready yet. They have each found their own ways and patterns of argument to downplay the paralyzing traditional perspectives, established processes and internal conflicts of interest. The budget draft and the escalated dispute over it show how big the problem is. Drawing attention to grievances: art can do that too.