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Kubicki cautions SPD against dissolving the alliance.

"Scholz agrees on austerity measures"

The SPD's desire for more debt calls cooperation into question, says Kubicki.
The SPD's desire for more debt calls cooperation into question, says Kubicki.

Kubicki cautions SPD against dissolving the alliance.

The FDP-imposed austerity budget for 2025 is provoking significant opposition within the SPD. FDP Vice President Wolfgang Kubicki is urging his fellow party members to avoid a coalition breakdown and seeks clarification from Chancellor Olaf Scholz on the issue.

In connection with the SPD's desire for higher taxes or a loosening of the debt brake, Kubicki wants Scholz to deliver a more stringent message. "It might not be a bad idea if the Chancellor took on extra responsibility within his own party," Kubicki said to the Tagesspiegel. The 2025 budget decisions were made in conjunction with Scholz.

Kubicki blames the SPD for potentially threatening the coalition with their spending demands. The coalition agreement between the SPD, Greens, and FDP is the basis for their collaboration. "Anyone who challenges this foundation is also jeopardizing future partnership," Kubicki explained to the Tagesspiegel. Thus, Kubicki supports FDP leader Christian Lindner, who cautioned the SPD partner on Saturday about breaching the coalition agreement.

Lindner asserted to Bild that "if Lars Klingbeil is trying to increase taxes and get rid of the debt brake, he will need a majority beyond the FDP." The Finance Minister voiced his opinion.

SPD forecasts a more significant financial deficit

Klingbeil has been advocating for a move away from strict austerity measures for quite some time. He believes the financial gap cannot be closed solely through cost reductions. Earlier this week, he defined social democratic principles in the Tagesspiegel: Cutting costs should not come at the expense of security, economic stability, or social security. This cannot be achieved through. In an interview with Reuters, he mentioned either increasing revenue or exploring alternatives with the debt brake.

Tagesspiegel sources indicate that the SPD expects the financial deficit to be much larger than the figure offered by the Federal Finance Minister. In the SPD's budgetary circles, the deficit is projected to exceed 50 million euros. Of this, 25 billion is a result of the savings made by the federal government in 2025 compared to the previous year.

Another 20 billion stems from unaccounted funds in the climate and transformation fund (KTF) and additional expenses incurred by the state for the EEG surcharge. Additionally, the budget shows a calculated deficit of five billion due to new tax laws. The unaccounted budget for the Bundeswehr, which Defense Minister Boris Pistorius is requesting, is not factored in yet.

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