Coalition - Dispute over money: Nightly wrangling in the Chancellery
The heads of the Federal government continued their hour-long struggle over the new federal budget past midnight. Chancellor Olaf Scholz (SPD), Finance Minister Christian Lindner (FDP), and Economics Minister Robert Habeck (Greens) had already met at the Chancellery around 3:00 PM on Thursday. Initially, no agreement on the budget plan for the coming year was announced.
However, there is a provisional target: The SPD and Greens factions will come together for special meetings at 7:00 AM to be informed about the status of the negotiations. Scholz and Habeck may also participate. The FDP, according to information from the German Press Agency, will digitally brief their MPs at the same time.
Who is applying pressure - and who is trying to resist it
The SPD had announced its faction meeting in advance and increased the pressure on the three negotiators and their teams. They want clarity before the parliamentary summer break on what they will have to deal with from September 10. After all, it's not the Federal government but the Bundestag that decides on the budget - usually in November or December.
The FDP has also made it clear that they do not want to be put under pressure in the negotiations. "We must proceed carefully. It's about the stability of our state finances in an uncertain global situation," FDP leader Lindner told the German Press Agency.
What they are arguing about
The dispute escalated because, due to the difficult economic situation, many billions of euros in tax revenues are missing to finance the budget requests of the ministries. The three-person round therefore met again and again. In the evening, there was talk of a gap of still around 10 billion euros that needed to be closed.
Above all, the SPD is insisting, considering financial burdens from the Ukraine war, that the debt brake be suspended again to have more room for investments. For Lindner's FDP, this is not an option. The SPD rejects the cuts in social welfare that Lindner favors - even if he is not talking about cuts but a reduction in the further increase. They are also negotiating about a package of measures to stimulate the weak economy.
How the deputies argue
Subordinate organizations of the respective coalition parties were once again campaigning in the media for their positions - and for their chief negotiators not to give in too much to the other side in the compromise search. Social welfare organizations and the economy were also lobbying for their views.
- Jusos and Greens Youth: "A savings budget in the current situation is dangerous," warned the chairman of the SPD youth organization, Philipp Tümer, in the "Stern." It needs enough money for adequate housing, good schools, and a reliable railway, among other things. His Green colleague Svenja Appuhn demanded in the same magazine: "The Greens cannot agree to this budget settlement if savings are once again made at the expense of the weakest and poorest."
- Jungliberals and Young Union: They are opposed to this in the budget negotiations. "Be firm in your stance for the retention of the debt brake and show the courage to set clear priorities," states a letter signed by Julius Chefin Franziska Brandmann and JU Chef Johannes Winkel to the three chief negotiators, as reported by "Spiegel". "Our future and that of future generations depends on it."
- Social Unions: They warn against cuts in the social sector. "This would only fan the divide in society, and we can see that in the election results in France," said SoVD Chair Michaela Engelmeier to the Funke Media Group newspapers. VdK President Verena Bentele seconded: "Many people are unhappy and insecure. Cuts in the social sector would only pour more oil on the fire."
- Economy: "We will get more money into the state treasury through growth, not through debt or higher burdens, especially for the economy," said the President of the German Industry and Trade Chamber (DIHK), Peter Adrian, to the Funke Media Group newspapers. "The framework conditions in Germany are not right at the moment: too high costs, too much bureaucracy, too long and analogue procedures with outdated infrastructure." Structural reforms are therefore necessary.
Quote from the viewer
The Chairman of the CSU Bundestag delegation, Alexander Dobrindt, expressed skepticism. "I don't see any agreement in sight at all. And that's why: It's rather to be expected that it will get worse, not that it will somehow improve," he told the television station Welt.
- Christian Lindner, the leader of the FDP, stated to the German Press Agency that they must proceed carefully with state finances, considering the uncertain global situation.
- Robert Habeck and Olaf Scholz, from the Greens and SPD parties respectively, are expected to join the SPD faction meeting at 7:00 AM to discuss the status of budget negotiations.
- The SPD factions have increased pressure on the negotiators, wanting clarity before the parliamentary summer break on the budget plan for September 10.
- In Berlin, the leaders of major coalitions, including Christian Lindner, are engaged in an hour-long struggle over the new federal budget, past midnight.
- The German Press Agency reported that the FDP will digitally brief their MPs at the same time as the SPD and Greens factions meetings, providing information about the ongoing budget negotiations.
- According to the German Bundestag, the Federal Government is responsible for deciding on the budget, although it is usually finalized in November or December.
