Scholz announces "a lot of very clever measures"
The cabinet decisions are "on the last meters", Chancellor Scholz stated in the Bundestag. Additionally, there will be a "growth turbo". However, the exact details of this were not revealed by the Chancellor. "We'll get there."
Chancellor Olaf Scholz announced that the federal government would adopt the budget draft 2025 "as planned" in this month in the cabinet. However, Scholz did not specify when the political key points for the budget would be available in the Regierungsbefragung. It is expected that the agreement will still be reached this week.
The budget negotiations are "on the last meters", Scholz stated. The Bundestag can begin deliberations on the budget after the summer break: "There will be no disruption to this timeline."
Scholz also announced reliefs: The federal government is currently working "at this moment" on a "growth turbo", which will be presented together with the budget. This plan will "contain many smart measures". He did not reveal any details, only: "I'm happy with what I know so far." In response to an AfD faction question, Scholz confirmed that the coalition is planning "concrete tax reliefs". One can be sure that the reliefs will come, "You just have to wait a little longer. We'll get there."
When is the economic miracle coming?
Originally, the coalition had planned to pass the budget draft on this Wednesday in the cabinet. This was already postponed to July 17th. The reason: In the coalition, there was a dispute over individual budget plans. Above all, Defense Minister Boris Pistorius, Labor Minister Hubertus Heil, Foreign Minister Annalena Baerbock, Development Minister Svenja Schulze, and Interior Minister Nancy Faeser demanded more money.
Parallel to this, a fundamental conflict was being waged behind the scenes: Politicians from the SPD and Greens argued for filling gaps not through savings but through the suspension of the debt brake. The FDP rejected this categorically. The question was already decided in May when Scholz clearly aligned himself with the FDP.
CDU budget politician Mathias Middelberg confronted the Chancellor with a quote from March 2023 in the Bundestag. At that time, Scholz had told the "Lausitzer Rundschau": "Due to the high investments in climate protection, Germany will be able to achieve growth rates like those in the 50s and 60s for some time." Middelberg wanted to know when "we can really count on your economic miracle and the four or eight percent annual growth rates".
SPD faction plans special session on Friday
In his response, Scholz referred to the "crises we had to face", such as the stoppage of gas deliveries by Russia, and counted the measures with which the federal government had reacted. Now, "the first data for economic improvement are coming in". Furthermore, the coalition "has laid the foundation for good growth".
To make July 17th for the cabinet decision, the coalition at least needs a rough agreement this week, as the budget draft also needs to be written. At the same time, this is the last week before the summer break. Economics Minister Robert Habeck stated shortly before the Chancellor's government grilling: "We need to nail this down now". A difficult budget means "that everyone will have to go to their pain threshold and sometimes even beyond it".
From the traffic light, optimistic signals have recently emerged regarding this schedule. The SPD faction has already invited to a special session for Friday morning at 7:00 AM - a sign that an agreement is expected by then.
Union sees budget as "demolition ball of the traffic light"
However, CSU-state group leader Alexander Dobrindt stated in the morning that he had doubts, "whether that's even solvable." The traffic light shows itself in the budget dispute "completely shattered, crushed, aimless," according to Dobrindt in the early morning news on ntv. "And the budget, that's the demolition ball of this traffic light."
The parliament will regularly meet again in September. The budget politicians would therefore have the summer to examine the draft budget. Regular budget deliberations of the Bundestag could then begin. The budget could be finally passed in November or early December. Last year, that didn't work out: Due to a judgment of the Federal Constitutional Court and subsequent disputes in the traffic light over necessary savings, the coalition passed the budget for 2024 only in early February.
NATO statement comes still
In the government grilling, Scholz assured that the two-percent NATO goal would be maintained permanently. CDU defense politician Jürgen Hardt then asked, what concrete numbers are on the chancellor's speaking notes for the upcoming NATO summit in Washington: "We as the German Bundestag would also like to know that as Germans." Speaking notes are prepared by staff for public appearances by politicians.
Scholz replied: "I believe, the statement is not yet ready, I have not seen it myself yet." He will say in Washington that Germany will reach the two-percent goal in the coming years. In addition, the federal government is actively preparing "my statement so that I can answer these questions to your pleasure."
The budget negotiations are indeed on the "last meters," as Chancellor Scholz mentioned in the German Bundestag. Despite the delay, the Bundestag is expected to start deliberations on the budget after the summer break, ensuring no disruption to the timeline. Furthermore, Olaf Scholz announced reliefs, including concrete tax reliefs, as part of the 'growth turbo' plan, which will contain many smart measures.
