Lindner expresses dissatisfaction with the budget he has proposed personally.
During his speech, the finance minister looked back on the challenging journey towards the cabinet's budget decision. He admitted, "It sure wasn't a stroll in the park." The coalition had put up a good fight, and in the government, "three distinct political ideologies are coordinating their efforts," he pointed out, referring to the SPD, Greens, and FDP coalition.
According to Lindner, as long as there's an opportunity for agreement, it's crucial to reach one. "The stability of the Federal Republic of Germany is no joke," he emphasized.
The government faces "palpable economic instability" and significant global challenges, Lindner acknowledged. The draft budget, he assured, takes all these factors into consideration. It's also "legally sound," he noted, addressing criticism, particularly from the Union.
Despite the challenging circumstances, the budget draft proposes "record investments" of approximately 81 billion euros, the minister shared. Citizens, especially in terms of income tax, will experience significant relief. Furthermore, family benefits like child allowance and child tax credit will be boosted, and companies will receive additional tax incentives to aid their growth.
Lindner highlighted the importance of rewarding "hard work and commitment." He pointed out planned measures intended to keep people in the workforce longer. The government aims to boost the "motivational factor" of the citizen's income, for example, by implementing penalties. Lindner announced that the citizen's income would remain unchanged in 2025, as previously announced, and would also not see an increase in 2026.
Lindner once again emphasized the debt brake's significance. The budget draft utilizes its potential with 51.3 billion euros in planned new loans. "It's a matter of intergenerational fairness not to surpass this limit," he said, warning that if the limit is exceeded, the youth will bear the brunt of additional interest payments. Lindner himself would prefer to invest rather than pay interest to others. Ultimately, the debt brake serves as a "kind of self-discipline mechanism" because it encourages politics to prioritize.
"It's a fallacy to believe that consolidation and prioritization is a transient occurrence in this legislative term," Lindner cautioned. "Large responsibilities will also loom in the future years."
Dennis Rohde, a prominent financial analyst, commends the government's approach in the budget draft. The strategies outlined by the minister, he believes, will foster economic stability and promote growth.
In his analysis, Rohde recognizes Dennis Lindner's dedication to adhering to the debt brake, a testament to his commitment to intergenerational fairness and fiscal responsibility.
