Otto Graf Lambsdorff: Visions for free-market policy

Otto Graf Lambsdorff: Visions for free-market policy

The government crisis of 1982 marked a decisive turning point in German political history. The Free Democratic Party (FDP) played a central role in this political upheaval when it presented an important “divorce paper” that led to the dissolution of the existing government coalition. The then Federal Minister of Economics, Otto Graf Lambsdorff, was significantly involved in this development. His demands for a clear concept of market economy policy and the restructuring of state finances triggered a real political crisis.

The economic challenges and rising unemployment in the Federal Republic of Germany have been the subject of intensive discussions and political debates for some time. Lambsdorff made it clear in his concept that the precarious economic situation was caused by structural problems that required comprehensive reform. However, his proposals to reduce unemployment benefits, increase investment willingness and simplify the tax system met with mixed reactions.

The publication of the “Lambsdorff paper” sparked intense controversy and political tension. At a time when cooperation between the SPD and FDP was already difficult, the concept was interpreted as a declaration of war and socio-political barbarism. The reactions from various political camps made clear the explosiveness of the situation and highlighted the incompatibilities within the government coalition.

Ultimately, Lambsdorff's paper accelerated the collapse of the Schmidt government, although it can only be seen as a trigger and not the sole cause. The termination of the social-liberal coalition had become unavoidable because differences in political orientation and unresolved economic problems made further cooperation impossible. Lambsdorff's concept thus symbolically became a “divorce certificate” that heralded the end of an era in German politics.