Agreement in the budget dispute - debt brake will be adhered to in 2025
Scholz met with the SPD fraction in the Bundestag on Friday morning to inform them about the decision. Simultaneously, a fractions meeting of the Greens took place, where Economy Minister and Deputy Chancellor Robert Habeck (Greens) attended.
The Green European politician Anton Hofreiter was pleased about the breakthrough. "Given the global situation, it would have been completely irresponsible if the government had fallen apart now," said the chairman of the European Affairs Committee in the Bundestag to journalists. Germany has "a great responsibility" for maintaining cohesion and defense readiness in Europe. "Of course, one must carefully observe the agreement."
The three leading representatives of the traffic light coalition had been negotiating a solution in the budget dispute for weeks. FDP leader Lindner had rejected the SPD's demand for a renewed suspension of the debt brake and instead demanded billion-dollar savings.
The German government plans to pass the budget draft in the cabinet on July 17, according to previous plans. It should then be discussed in the Bundestag after the summer break and adopted at the end of November.
- Following the meeting, Robert Habeck returned to the Bundestag as both the Economy Minister and Deputy Chancellor for the Green party.
- The SPD fraction in the Bundestag, led by Olaf Scholz, was briefed about the decision, which had significant implications for the Federal budget.
- As the news of the potential resolution to the budget dispute spread, AFP reported that negotiations between the three coalition parties had been intense, with Christian Lindner leading the charge for the FDP.
- The Greens' Anton Hofreiter, who serves as the chairman of the European Affairs Committee in the Bundestag, praised the breakthrough, stating that it was crucial for Germany's commitment to maintaining cohesion and defense readiness in Europe.
- Despite the positive developments, Hofreiter also emphasized the importance of carefully observing the agreement to ensure that the goals of all parties involved were met in the long term, especially considering the demands from Christian Lindner.
- With the agreement in sight, political analysts predicted that the German government would aim to pass the budget draft in the cabinet on July 17, as previously planned, and then present it to the Bundestag for discussion and possible adoption after the summer break, targeting an end-of-November passage.
- As the date for the budget draft's introduction in the Bundestag approaches, various factions within the coalition, including the SPD and Greens, will continue their negotiations, aiming for a unified and balanced Federal budget for 2025.
