Legislature won't see a separate economic budget, asserts Habeck
Economy Minister Robert Habeck has shut down his proposed "Special Fund" to bolster and ease the economy for the current legislative term. However, Habeck expresses optimism that this plan might materialize following the next federal election. For now, he admitted there's not much to be done given the coalition agreement and the FDP's opposition to more debt.
"I'm pretty confident that this discussion will pick up steam leading up to the next federal election, and it could potentially lead the charge, which is unfortunate because we'd essentially be wasting two years in the process," commented the minister.
The German Business Association (BDI) approximates that the government needs around 400 billion Euros in investments, excluding power grids and energy, for the subsequent decade. The BDI is okay with new debt for financing purposes, as long as the federal budget is balanced and structural changes are initiated.
"We desperately need such an investment program, such a kickstart, just like the BDI or I have proposed," said Habeck during a video call at the "Sustainability Summit" of the "Süddeutsche Zeitung" in Munich.
The trio of coalition partners, SPD, Greens, and FDP, are working out the federal budget for 2025. Several ministries are struggling to meet Finance Minister Christian Lindner's spending reduction targets. A "Dynamization Package" is proposed to rejuvenate the struggling economy. Habeck anticipates an agreement between the traffic light coalition by July, but declined to provide any specifics: "You, as a journalist, are familiar with political logic. As a rule, expressing an idea often hinders its progress," shared the Green politician with moderator Lisa Nienhaus.
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Currently, the legislature won't be receiving an economy-specific budget, as per Habeck's assertions. Despite this, the minister remains hopeful that the plan might be implemented post-next federal election, given the FDP's opposition to additional debt at present.
