Budget stalemate continues according to Lindner
On the 3rd of July, the government is set to take action regarding the 2025 budget. Yet, Finance Minister Lindner shares his concerns about the absence of any budget savings. He's pushing for a decisive action on economic recovery. We're not at the "Landezone" yet.
There seems to be no breakthrough in the discussion between the traffic light coalition concerning the upcoming federal budget, as per Finance Minister and FDP leader Christian Lindner in an interview with the "Neue Osnabrücker Zeitung". "We haven't hit the target yet," he said. For Lindner, it's not just about a budget plan for the coming year, but a drastic change in our economic system.
He emphasizes the importance of boosting the motivation of workers and nudging them to take on entrepreneurial risks. Otherwise, he warns, our economy won't escape its current predicament. The government needs to streamline its effectiveness in crucial tasks and should not meddle in everything, he believes. "By limiting our scope, we create an opportunity to focus on the critical projects in education, digitalization, infrastructure, and security."
"Heavy Investments - Not Cuts in Social Spending"
However, SPD Chair Saskia Esken has advocated for "substantial investments" in the "Tagesspiegel" and condemned Lindner's proposed cuts in the "Süddeutsche Zeitung" as a "historic blunder". In response, Lindner told the "Neue Osnabrücker Zeitung": "Since 2022, we have increased social benefits by 13 billion Euros. There can be no discussion of cuts in social spending - in fact, we're considering an increase."
In the face of stagnant economic growth, Lindner adds, "We can't carry on as is. Even Mrs. Esken must acknowledge that wealth has to be earned before it can be shared."
The budget plan for the upcoming year is set for approval by the Bundeskabinett on July 3rd. With a projected budget deficit of around 25 billion Euros, Lindner insists on substantial reductions in the budgets of several ministries, particularly the Social Ministry. Simultaneously, he turns down the demands of coalition partners for relaxation of the debt brake.
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Saskia Esken, the SPD Chair, has opposed Christian Lindner's proposed budget cuts, calling them a "historic blunder" in an interview. Despite this, Lindner maintains that they have actually increased social benefits by 13 billion Euros since 2022, and there will be no cuts to social spending.
In the ongoing debate about the budget policy, Saskia Esken advocates for "heavy investments," while Lindner insists on implementing the debt brake and reducing the budgets of several ministries. This stance has led to a stalemate in the discussion between the traffic light coalition, with Lindner urging a decisive action on economic recovery and not being at "Landezone" yet.
