Chancellor expects budget agreement on Thursday
Federal Chancellor Olaf Scholz aims to reach an agreement on the federal budget for 2025 this week. "Many appointments have been scheduled, so we can finish the draft budget by Thursday," Scholz stated in the SPD parliamentary faction according to sources. The SPD faction also plans a special session for Friday, during which the deputies could be informed about the agreement between Scholz, Vice Chancellor Robert Habeck from the Greens, and Finance Minister Christian Lindner from the FDP. No details about a near agreement have been disclosed yet.
SPD parliamentary group leader Rolf Mützenich had repeatedly urged the government to reach a consensus. SPD and Greens have been pushing for weeks that the budget gap for 2025 should not only be closed through savings but also by declaring emergencies or special funds for Ukraine aid, among other things. Lindner and the FDP parliamentary group have rejected this so far. In parallel, a package to strengthen Germany's economic position could be passed. Scholz urged in the parliamentary group, according to sources, that there should be no zero-sum thinking in the decisions.
The consultations with the ministries on possible savings should now be largely completed. However, there is still a gap in the budget outline for 2025, it was reported. FDP parliamentary group leader Christian Dürr confirmed the position of his party: neither the debt brake nor taxes should be raised. Scholz himself had said the most important thing, quoted Dürr: "We have to make do with the money we have." The era of "pouring money" is over.
Kubicki: FDP will not give in to pressure
Apparently, there is pressure from hardliners in the FDP parliamentary group. Vice President of the FDP Wolfgang Kubicki threatened the coalition partners SPD and Greens with the end of the coalition. "I hardly believe that Olaf Scholz will receive the necessary approval if he presents a constitutionally questionable budget as a confidence vote," Kubicki told the "Frankfurter Allgemeine Zeitung." The two coalition partners of the Liberals would "soon, since they apparently still don't believe that the Free Democrats do not give in to pressure," he added.
However, the FDP appears increasingly isolated with its interpretation of whether exceptions to the debt brake are constitutional or not. Not only DGB Chairwoman Yasmin Fahimi, but also BDI Chair Siegfried Russwurm spoke up in the SPD parliamentary group. Industry, labor, and economists are calling for additional investments in Germany. SPD parliamentary group leader Mützenich, however, said that the SPD faction believes that the budget gap, which exists in the budget, can only be closed by again deviating from the debt brake anchored in the Basic Law.
Speaker of the Parliamentary Left Matthias Miersch emphasized that the SPD also wants a constitutional budget. One should not play themes and groups against each other. Therefore, further aid for Ukraine is important. However, it should not give the impression that projects in the country have to be cut as a result. The Greens expressed themselves similarly: The traffic light coalition wants to modernize the country, for which investments are necessary, said co-faction leader Britta Haßelmann: "That's a given." There should be no austerity budget.
Monday, 15th August 2022
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Olaf Scholz, as part of the Traffic light coalition, is currently negotiating the federal budget for 2025, aiming to reach an agreement this week. Despite several consultations and scheduled appointments, no details about a near agreement have been disclosed yet.
Rolf Mützenich from the SPD and Wolfgang Kubicki from the FDP have both voiced their opinions on the budget policy, with Mützenich pushing for closure of the budget gap through savings and emergency funds, and Kubicki threatening the coalition's end if Scholz presents a constitutionally questionable budget.
