Budget dispute: CDU considers savings on social benefits or development aid essential
In the dispute over the 2025 federal budget, the Union considers cuts in social benefits inevitable. "Now it's all about shifting the priorities in the federal budget towards more investments in infrastructure," said Thorsten Frei, parliamentary manager of the CDU/CSU parliamentary group, in the Düsseldorf-based "Rheinische Post" (Monday edition). "And that means that savings must be made in consumptive expenditures, such as social benefits or development aid."
The cause of the investment backlog in Germany, according to Frei, are insufficient investment expenditures and high consumptive expenditures. "This must change quickly if we don't want to risk the economic competitiveness of Germany," said the CDU politician.
Frei rejected demands from the Greens for a special fund for the railway and the expansion of the hydrogen network. "Those who cannot control the cost side of the budget will not benefit from special funds," he said. Instead, "a real growth package is needed, focusing on deregulation, de-bureaucratization, and relief."
The draft budget for 2025, agreed upon in July after months of discussions in the traffic light government, is set to be debated in the Bundestag after the parliamentary summer recess in September and decided by the end of November. However, the dispute was reignited on Thursday when the Federal Ministry of Finance demanded improvements. The background is expert assessments that have constitutional concerns about the draft. The Ministry of Finance now demands further cuts in the social sector and consumptive expenditures in the parliamentary procedure.
The SPD and Greens criticize this and demand solutions from Finance Minister Christian Lindner (FDP). "We will not accept reckless cuts," said Andreas Audretsch, deputy parliamentary leader of the Greens, in the "Bild" newspaper (Saturday edition). "A finance minister cannot just reject proposals, he must develop solutions." SPD budget expert Achim Post told the newspaper that a loan or equity financing for the railway appears to be a feasible option. This would leave a gap of around four billion euros to be closed. "That seems to me not an insurmountable task."
The CDU, as represented by Thorsten Frei, advocates for shifting budget priorities towards infrastructure investments, suggesting potential cuts in social benefits and development aid. In response to financial ministry demands for further cuts, Audretsch from the Greens insists that the finance minister must propose solutions instead of rejecting proposals, suggesting loan or equity financing for the railway as a possible solution.
