FDP demands adherence to the debt limit in the 2025 financial plan.
In the discussions for the 2025 budget, the FDP keeps stressing the significance of sticking to the debt limit. As per Christian Dürr, the FDP fraction leader, stated on ZDF-"Morgenmagazin", the government needs to manage its finances based on the income of German citizens. He believes that the talks among the traffic light coalition are still ongoing, but passing the budget by the council on July 3rd isn't necessary.
Dürr asserted, "The debt limit needs to be maintained." Every Euro we borrow today, future generations will be saddled with the debt." Thus, politics must act prudently, like households do. Defense, internal security, and infrastructure development were given as examples of areas that require more funds. There's room for additional budget only through higher economic growth. Consequently, the administration needs to make it simpler for businesses to invest more.
Regarding whether the 2025 budget, given the tough negotiations, could be passed by the council as planned on July 3rd, Dürr replied, "It's not about July 3rd per se, but about the council formulating a budget in July." The Bundestag would then address the proposal from September onwards, following the summer break. The intention remains to approve the budget by the end of November or the start of December. "We're sticking to the schedule."
According to the Pioneer portal, quoting government sources, a council decision on July 3rd is becoming less probable. Chancellor Olaf Scholz exhibited optimism during the ARD summer interview on Sunday, stating, "We'll put the budget back on track in July" - without explicitly referencing July 3rd.
For several months, the federal government has been embroiled in disagreements due to tight budgets and a weak economy over the budget for the coming year. Apart from the debt limit, disputes also persist regarding the height of social benefits, infrastructure investments, and expenses for defense and development projects. Federal Finance Minister Christian Lindner is pushing for substantial cuts in the budgets of several ministries, particularly in social spending.
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The FDP emphasizes the importance of maintaining the debt brake in the 2025 financial plan, aligning with their demand for compliance with the debt limit. Dürr, the FDP fraction leader, suggests that budget discussions should consider the income of German households, implying a need for fiscal responsibility.
