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Habeck: Debate on budget emergency is over

Vice Chancellor Habeck praises the traffic light budget compromise. However, he draws attention to a longer-term problem.

Vice-Chancellor and Federal Minister of Economics Robert Habeck in Berlin on Friday
Vice-Chancellor and Federal Minister of Economics Robert Habeck in Berlin on Friday

VIZE-KANZLER - Habeck: Debate on budget emergency is over

Federal Economics Minister Robert Habeck stated in the ARD "Tagesthemen" after the coalition leaders' agreement on the 2025 budget that there should be no more debates on a budget crisis leading to the suspension of the debt brake. "This debate is over. I wouldn't reopen it again. I believe this debate is settled," said the Green politician. The focus should now be on the budget draft.

Federal Chancellor Olaf Scholz (SPD), Habeck, and Finance Minister Christian Lindner (FDP) reached a compromise on the federal budget late on Friday after lengthy negotiations. The FDP was pleased that the debt brake was being upheld. There were muted reactions within the SPD and the Greens.

Habeck, however, spoke of a "very, very good package" and gave it a 2.+ rating. For the agreement to come about, he would only give it a 3. However, the agreement would have an impact on the economy, climate protection, and social justice. "We need to bring all that together, that's not so bad."

Habeck: Long-term financing of the Bundeswehr still open

Deputy Chancellor Habeck acknowledged that the long-term financing of the Bundeswehr was not yet secured. "We'll just make it through to 2025. After that, it will get tighter," Habeck said. The 100 billion euro special fund for the Bundeswehr will eventually be exhausted. Then more money will be needed.

The goal should remain to allocate two percent of economic output to defense. The financing has not been found yet. "That is significantly higher than our problem of the last few days or the last night," Habeck made clear. "I don't want our defense capabilities to lead to cuts in education, research, culture, or social benefits." This debate will be conducted in the future, probably during the next federal election campaign, Habeck said. It's about maintaining peace in Europe.

Habeck admitted that there had been difficult moments in the talks with Scholz and Lindner. "It can get harsh and rough, and that happened too," said the Economics Minister. Helped was then the perspective from outside. Habeck referred to the complicated government formation in France, the upcoming US presidential election, and the Ukraine war. "The world doesn't revolve around our small financial gap. We need to pull together. We need to close ranks," he emphasized.

  1. Christian Lindner, representing the FDP, expressed satisfaction with the agreement on maintaining the debt brake in the German Armed Forces' budget for 2025.
  2. After the coalition leaders reached a budget compromise, ARD's "Tagesthemen" featured Federal Economics Minister Robert Habeck, who praised the agreement despite giving it a moderate rating.
  3. Amidst muted reactions within the SPD and the Greens, Habeck acknowledged that the long-term financing of the Bundeswehr was still a significant concern, with the 100 billion euro special fund set to expire.
  4. During the negotiations, there were challenging moments between Habeck, Scholz, and Lindner, but Habeck emphasized the need to prioritize peace in Europe and resist any cuts to education, research, culture, or social benefits to fund defense.
  5. As the focus shifts to drafting the budget, Christian Lindner assured the German public that the FDP will continue to advocate for the upholding of the debt brake, recognizing its importance in maintaining financial stability and security.

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