- Lindner: Ending subsidies for renewables faster
German Finance Minister Christian Lindner (FDP) advocates for a quicker end to subsidies for renewable energies. "Regarding solar promotion, there is an urgent need for action. Subsidies have risen significantly," Lindner told the Funke media group. "But promotion is no longer needed on a broad scale because it's profitable. This must be ended as soon as possible."
Lindner referred to the coalition agreement to stop subsidies for renewable energies at the latest with the coal phase-out. In his view, this could happen much earlier, he said. "The new small solar panel on the house roof is already exempt from value-added tax, which is sufficient promotion." The coal phase-out is scheduled for 2038. The traffic light coalition had set itself the goal of ideally bringing this date forward to 2030.
Lindner also warned of a new debt crisis in Europe if Germany takes on significantly more loans and called on the coalition to take further steps to reform the social state. "We need more empathy for truly socially disadvantaged and needy people - but on the other hand, more consistency with free-riders who want money from this state although they could work, or who are illegally in our country."
Lindner feels not addressed by the Chancellor's message
In the dispute within the coalition over the federal budget 2025, Lindner cannot recognize any criticism of him from the Federal Chancellor. "I do not feel addressed by the Chancellor's message," the FDP chairman told the Funke media group. Chancellor Olaf Scholz (SPD) had previously made it clear that a legal opinion on the draft budget does indeed allow loans from the railway and the motorway company as financing means.
Scholz added in the conversation with "Zeit Online": "It remains a mystery how the clear vote of the legal opinion could be temporarily misunderstood so fundamentally wrong." Lindner had doubted whether around eight billion euros for rail and motorways could be financed with loans.
The dispute within the traffic light coalition over the federal budget 2025 has flared up again in recent days. Background are projects that were supposed to reduce the financing gap in the budget by a total of eight billion euros. Lindner had commissioned expert opinions due to legal and economic concerns. These confirmed the concerns in part, but also showed ways to implement at least some of the measures.
By mid-August, Lindner, Federal Chancellor Olaf Scholz (SPD) and Vice Chancellor Robert Habeck (Greens) want to reach an agreement and bring about a cabinet decision on this.
Union considers more time for budget negotiations necessary
The deputy chairman of the Union faction, Mathias Middelberg, considers the time plan for the budget negotiations in the Bundestag questionable. The budget negotiations scheduled for September should be postponed if the traffic light politicians do not submit an "honest plan" in time, the CDU politician told the German Press Agency.
Lindner's assumption that only a financing gap of five billion euros needs to be closed is "far from reality," Middelberg criticized. In fact, at least 13.4 billion euros of the 17 billion euros previously planned as a so-called global shortfall still need to be financed. And even that is still very optimistically calculated.
Middelberg advocates for a postponement of the budget week.
Although budget cuts of between one and two percent were also planned in previous years, this time they are significantly higher. It has already become apparent this year that higher budget cuts are to be expected. Global budget cuts are being made without reductions in individual budget items. It is also anticipated that not all allocated funds will be spent. The budget for the coming year has a volume of 480.6 billion euros - around eight billion less than this year. "Without a significant reduction in the planned budget cuts, the first reading of the budget in the Bundestag scheduled for September will have to be postponed," demanded the deputy chairman of the Union faction.
The financial sector may be impacted by Germany's plans to end subsidies for renewable energies, as the coal phase-out could potentially create opportunities for investments in alternative energy sources. The financial sector should also be cautious about Germany's debt levels, as Lindner warned of a potential new debt crisis in Europe.
