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Budgetary dispute: the Union sees a need for a jump in social benefits

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 investment in infrastructure,' said Thorsten Frei, parliamentary manager of the CDU/CSU Bundestag group, in the...

Budgetary dispute: the Union sees a need for a jump in social benefits

Causes of the investment status in Germany are insufficient investment expenditures and excessive consumption expenditures. "This must change immediately if we don't want to risk the economic location of Germany being further disadvantaged," said the CDU politician.

Demands from the Greens for a special fund for the railway and the expansion of the hydrogen network were rejected by Free. Baden-Württemberg's Minister President Winfried Kretschmann (Greens) had previously raised this issue. "Those who cannot control the cost side of the budget, even special funds will not help," said Free. What is needed now is "a real growth package that focuses on deregulation, de-bureaucratization, and relief."

The draft budget for 2025, decided upon after months of discussions in the traffic light government in July, is to be debated in the Bundestag after the parliamentary summer break in September and decided by the end of November. However, the dispute over this was reignited on Thursday because the Federal Ministry of Finance is demanding improvements.

The background is expert assessments that have constitutional concerns about the draft. The Finance Ministry is now demanding further savings in the social sector and consumption expenditures in the parliamentary procedure.

SPD and Greens criticize this and demand solutions from Finance Minister Christian Lindner (FDP). "We will not accept reckless savings," confirmed the deputy faction leader of the Greens in the Bundestag, Andreas Audretsch, in the "Bild" newspaper (Saturday edition). "A finance minister cannot just reject proposals, he must develop solutions."

SPD budget expert Achim Post said in the newspaper that, in particular, "a loan or equity provision for the railway appears to be a feasible option." According to the budget politician, this would leave a gap of around four billion euros still to be closed. "That seems to me to be a solvable task."

The draft budget for the Federal Budget of 2025 is set to be discussed and decided in the Bundestag after the summer break. However, the Finance Ministry is demanding improvements and further savings, including in the social sector and consumption expenditures.

SPD budget expert Achim Post suggests that a loan or equity provision for the railway could be a feasible solution to close the remaining gap in the Federal Budget.

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