Lindner on the budget: "Other issues take a back seat"
Finance Minister Lindner is satisfied with the current tax estimate, which confirms his request for savings in government ministries, excluding education and defense. The coalition partner SPD disagrees.
Federal Finance Minister Christian Lindner is optimistic about the cabinet's approval of the 2025 federal budget in July despite the significant downward revision of the tax estimate. During a ZDF television appearance on Thursday night, Lindner stated that while there is still work to be done, the new forecast - indicating that the federal, state, and local governments will collect less taxes next year than previously assumed - wasn't unexpected. He emphasized priorities like "hard security," reviving the economy, and investing in education and technology, suggesting other areas are less important. Lindner also cited Chancellor Olaf Scholz's support and called for all departments to make savings.
Lars Klingbeil, SPD leader, reaffirmed his party's stance: pension cuts are unacceptable. In an interview with the German Press Agency, he stated, "Anyone who thinks we can fund necessary investments in the economy, jobs, or the Bundeswehr by cutting pensions now should pull out their calculator again." He added, "This is not only politically wrong, but also mathematically impossible."
The tax estimators determined that the federal, state, and local governments would collect €995.2 billion next year - €21.9 billion less than projected in the fall. Once again, Lindner criticized the "overly ambitious" spending requests from the cabinet and insisted there's no financial flexibility in the foreseeable future. FDP recently stated their intention to abolish the full retirement age of 63 after 45 years of employment to save money.
Klingbeil acknowledged the needed adjustments in the federal budget but reiterated the SPD's stance of not sacrificing pensions, but rather making Germany economically powerful and modernizing it. Klingbeil stated, "It's not about working with Excel tables and making cuts, but about how we can keep this country strong. I support the demands of our defense, interior, and development ministers given the challenges posed by the Ukraine war." He concluded, "There should be no delays in creating the budget. A budget must pass the cabinet before summer, and the decision is planned for early July."
Planned for July: The Federal Budget Despite Revised Tax Estimate
Finance Minister Lindner remains unfazed by the lower tax projections, reaffirming the need to make cuts and maintain priorities. He said, "We are confident we can finalize the budget together responsibly." In contrast, his coalition partner Klingbeil asserted, "We will not simply cut back." The SPD leader emphasized the need for a budget that doesn't endanger security or the security of Ukrainians and supports Defense Minister Pistorius's request for additional Bundeswehr funds. The debate on whether to exempt security issues from the debt brake will continue within the cabinet.
Read also:
- Year of climate records: extreme is the new normal
- Precautionary arrests show Islamist terror threat
- UN vote urges Israel to ceasefire
- SPD rules out budget resolution before the end of the year
- The debate within the cabinet revolves around whether to exempt social security issues from the debt brake, an essential aspect of budget policy.
- Despite the significant downward revision of the tax estimate, Christian Lindner advocates for maintaining priorities in areas like pension policy and budget policy.
- Lars Klingbeil, the SPD leader, has expressed strong opposition to pension cuts, stating that they would be mathematically impossible and detrimental to the economy and job market.
- The FDP has suggested abolishing the full retirement age of 63 after 45 years of employment as part of their austerity policy aimed at saving money.
- Christian Lindner and Lars Klingbeil hold contrasting views on pension policy, with Lindner advocating for cost-cutting measures and Klingbeil prioritizing the security and well-being of retirees.
Source: www.ntv.de
