Dispute over traffic light regulations may halt budget agreement upcoming week
Germany's Federal Finance Minister, Christian Lindner (FDP), acknowledged that the budget discussions aren't over just yet. He vehemently opposed suspending the debt limit and adding special fundslike for the Bundeswehr post Ukraine war. "Structural issues can't be tackled with temporary fixes," he asserted. Germany boasts a vast wealth of resources totaling a billion Euros in state earnings, but it seems there's a shortage of "guts and definite priorities."
At first, the coalition government aimed to approve the 2025 budget plan on July 3 in the cabinet. However, sources within the government hinted that July 3 might not happen. Instead, some areas suggested the 17th of July as a potential new date.
In an interview on ZDF, FDP parliamentary group leader Christian Dürr simply stated, "It's not all about July 3, but about the cabinet finalizing a budget in July." The Bundestag would review the proposal post summer break, starting from September onwards. The aim remains to pass the budget by late November or early December. "We're on track."
SPD parliamentary group leader Rolf Mützenich wished for the upcoming week to be the time for adopting the budget plan. "But if the federal government needs more time to sort things out, it's better they take it."
However, the primary issues haven't been resolved yet. FDP parliamentary group leader Dürr continued to push for adhering to the debt limit. "Every Euro we borrow today, our future generations will need to repay," he asserted.
The coalition parties have been brainstorming solutions for weeks to cover a financing gap in the 2025 budget, estimated in the billions. Lindner is insisting on major budget cuts, particularly in the social sector, across several ministries.
Droge praised Chancellor Olaf Scholz (SPD)'s weekend statements on the protection of the welfare state. He is now tasked with presenting a budget plan that "maintains the welfare state, without making any cuts." Furthermore, priority should be given to climate protection in the budget negotiations for the railway and the expansion of the rail network.
The Union criticized the delay in the adoption of the budget. Scholz is reportedly scheduled to attend the NATO summit from July 9 to 11 in the USA without a passed budget, according to Union parliamentary group leader Friedrich Merz (CDU). This is "a significant burden for the Federal Chancellor's visit to Washington."
According to CDU budget expert Yannick Bury, any delay in the budget is "toxic for the already shaky economic situation in the country." "As long as companies and consumers aren't certain about taxes or funding programs, nobody invests in the country," he added. It seems increasingly apparent that "the coalition and its government chaos are the country's own economic policy issue."
The Left's Parliamentary Leader, Christian Görke, referred to the delay as a "failure with anticipation." The postponement of the budget resolution yet again displays "the incompetence of the 'Traffic Light' coalition."
Read also:
- Christian Lindner, the German Federal Finance Minister and FDP leader, expressed his opposition to suspending the debt limit and adding special funds for the German Armed Forces post Ukraine war, stating that structural issues cannot be tackled with temporary fixes.
- Despite initial plans to approve the 2025 budget plan on July 3, sources within the government suggested that a new date, potentially the 17th of July, might be more suitable.
- Rolf Mützenich, the SPD parliamentary group leader, expressed hope that the upcoming week would be the time for adopting the budget plan, but was open to more time if needed for the Federal Government to sort things out.
- Dürr, the FDP parliamentary group leader, continued to push for adhering to the debt limit, arguing that every Euro borrowed today would need to be repaid by future generations.
- As the coalition parties brainstorm solutions to cover a financing gap in the 2025 budget, estimated in the billions, Lindner is insisting on major budget cuts, particularly in the social sector, across several ministries.
- Katharina Dröge praised Chancellor Olaf Scholz's (SPD) statements on the protection of the welfare state, urging the presentation of a budget plan that maintains the welfare state without making any cuts while prioritizing climate protection in budget negotiations.
- Merz, the CDU parliamentary group leader, criticized the delay in the adoption of the budget, suggesting it would be a significant burden for the Federal Chancellor's visit to Washington during the NATO summit from July 9 to 11.
- BDI, the German Confederation of Industry, expressed concerns about the delay in the budget, stating that any delay is toxic for the already shaky economic situation and that investors will not invest in the country as long as they are unsure about taxes or funding programs.
