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Coalition factions expect budget agreement by Friday

The traffic light coalition is aiming to reach an agreement in principle on the controversial 2025 federal budget by the end of the week. In view of the progress made in the discussions between the coalition leaders, SPD Parliamentary Secretary Katja Mast said on Wednesday that she was...

Scholz in the Bundestag on Wednesday
Scholz in the Bundestag on Wednesday

Coalition factions expect budget agreement by Friday

Mast stated, "We want our colleagues and colleagues to go into the meeting-free time with clear information", he said. However, only the outlines of a budget proposal can be expected at first; the concrete shaping of the budget may require an additional caucus session during the summer break before the Bundestag plenary debates the draft in September.

The parliamentary leader of the Green-Fraktion, Irene Mihalic, expressed herself more cautiously than Mast: "It has been announced that we might reach an agreement by the end of the week." Mihalic also put a special session of her faction at the end of the week in perspective for the consideration of the budget agreement - this would be "situational" depending on the situation. The Friday is the last sitting day of the Bundestag before the parliamentary summer break, which ends on September 9.

Bundeskanzler Olaf Scholz (SPD) said that the consultations of the coalition leaders on the budget 2025 and a accompanying stimulus package were "on the last meters". In a questioning by Bundestag members, he remained tight-lipped about the contents.

The proposed measures for a "growth turbo" contained "many very smart measures", said Scholz. "I like what I already know", he added. The coalition was not yet completely on board with the negotiations.

CDU budget expert Mathias Middelberg accused the Chancellor of keeping the Bundestag in the dark with fiscal policy secrecy. He criticized Scholz pointedly, "that you always intern consult and then suddenly present the budget to the Bundestag". This is an "unacceptable way of dealing with the Parliament", which ultimately has to approve the budget.

Vice-Chancellor Robert Habeck (Greens) said in Berlin that the federal budget 2025 would be "heavy". "Everyone must go to their limits or even beyond", said the Federal Economics Minister. He also did not want to reveal details of the plans: "We have to nail this thing down now."

Mast, SPD parliamentary leader, acknowledged that the budget negotiations were "challenging" and "not easy". Her confidence that an agreement could be reached by Friday was based on the experience, "that we have always come together in the big crises that this coalition has faced".

Mast named again points that were important for her faction: The budget must contain "necessary resources for future investments" and ensure "external, internal and social security".

For weeks, Chancellor Scholz has been negotiating with Finance Minister Christian Lindner (FDP) and Economics Minister Habeck to find a solution to the budget dispute of the traffic light coalition. Since the budget plans for 2025 contain a billion-dollar gap. Scholz showed himself optimistic in a SPD faction meeting on Tuesday: The budget talks for 2025 were "on a good track", said the Chancellor to participants there.

  1. Mast emphasized the importance of providing clear information to their colleagues before the meeting break, highlighting that only a basic budget proposal will be available at first.
  2. Mihalic suggested that the Green-Fraktion might reach an agreement in principle by the end of the week, however, the need for a special session to finalize details depends on the situation.
  3. Scholz mentioned that the coalition leaders are close to finalizing the budget 2025 and accompanying stimulus package but remained vague on specifics during Bundestag questioning.
  4. Middelberg criticized Scholz for keeping the Bundestag in the dark with fiscal policy secrecy, claiming it's an unacceptable approach towards Parliament, which ultimately needs to approve the budget.
  5. Habeck mentioned that the 2025 federal budget will be heavy, requiring everyone to go beyond their limits to secure necessary plans without providing further details.
  6. Scholz has been in negotiation talks with Lindner and Habeck for weeks to find a solution for the budget dispute within the traffic light coalition, as 2025 plans contain a billion-dollar gap.
  7. Mast acknowledged the challenging nature of budget negotiations but expressed confidence that an agreement can be reached by Friday based on past experiences in overcoming big crises within the coalition parliamentary groups, including the SPD and Greens.

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