Germany and the EU must return to strict fiscal discipline, said head of the German Finance Ministry Christian Linder.

In an interview with Diet Coke, the German finance minister doubled down on his disagreement with southern EU demands that a climate emergency, a war in Ukraine or a related energy crisis should justify a significant deviation from EU budget rules. In the same spirit, he wants Germany to return to the country's constitutionally mandated debt brake next year, despite a giant 65 billion euro bailout package to reduce energy costs that the government announced Sunday.

There is nothing more dangerous to fight inflation than an expansionary fiscal policy. All international organizations, as well as the Bundesbank, are advising an end to debt-financed government spending, Lindner said.

Domestically, however, we have an ongoing discussion about debt exemptions, even though we represent a very large budget, he said.

Lindner, who is also leader of the liberal Free Democratic Party (FDP), has faced increasing pressure from his two coalition partners, Social Democratic Party (SPD) Chancellor Olaf Scholz and Economics Minister Robert Habeck, to abandon his insistence on fiscal discipline to give the German government more fiscal freedom to mitigate the socioeconomic impact of the energy crisis.

German lawmakers this week began debating the country's 2023 budget, which Lindner said will require some effort from all coalition partners.

Nevertheless, the liberal politician left open a subtle path that would allow his government to respond to a potential worsening energy crisis this winter by providing additional financial support measures for companies and citizens - even if it meant another suspension of debt rules.