Scholz expects budget agreement on Thursday
Federal Chancellor Olaf Scholz aims to reach an agreement on the federal budget for 2025 this week. "Many appointments have been scheduled, so we can finish the draft budget by Thursday," Scholz said in the SPD parliamentary faction, according to information from participants. The SPD faction is also planning a special session for Friday, during which the deputies could be informed about the agreement between Scholz, Vice Chancellor Robert Habeck of the Greens, and Finance Minister Christian Lindner of the FDP. No details about a near agreement have been disclosed yet.
SPD parliamentary group leader Rolf Mützenich had repeatedly urged the government to reach a consensus. SPD and the Greens had been pushing for weeks that the budget gap for 2025 should not only be closed through savings, but also through the declaration of emergencies or special funds, for example, for Ukraine aid. Lindner and the FDP parliamentary group have rejected this so far. In parallel, a package to strengthen Germany's economic position could be passed. Scholz urged in the parliamentary group, according to participants, that there should be no zero-sum thinking in the decisions.
The consultations with the ministries on possible savings should now be largely completed. However, there is still a gap in the budget draft for 2025, it was said. FDP parliamentary group leader Christian Dürr confirmed the position of his party: neither the debt brake nor taxes should be increased. Scholz himself had said the most important thing, quoted Dürr: "We have to make do with the money we have." The era of "pouring money" politics is over.
Kubicki: FDP will not be put under pressure
Apparently, there is pressure from hardliners in the FDP parliamentary group. So, the deputy FDP vice-party chairman Wolfgang Kubicki threatened the coalition partners SPD and Greens with an end to the coalition. "I hardly believe that Olaf Scholz will receive the necessary approval if he links a vote of confidence with a constitutionally questionable budget," Kubicki told the "Frankfurter Allgemeine Zeitung." The two coalition partners of the Liberals would "soon, since they apparently still don't believe that the Free Democrats do not give in to pressure," he added.
However, the FDP's interpretation, whether exceptions to the debt brake are constitutional or not, is now appearing increasingly isolated. Not only DGB chairman Yasmin Fahimi, but also BDI chairman Siegfried Russwurm spoke up in the SPD parliamentary group. Industry, trade unions, and economists are calling for additional investments in Germany. SPD parliamentary group leader Mützenich, however, said that the SPD parliamentary group believes it is necessary to deviate from the debt brake anchored in the Basic Law again due to a state of emergency. Only then can the gap in the budget be closed.
Speaker of the Parliamentary Left Matthias Miersch emphasized that the SPD also wants a constitutionally sound budget. However, one should not play themes and groups against each other. Therefore, further aid for Ukraine is important. However, it should not give the impression that projects in the country have to be cut as a result. The Greens expressed similar views: The traffic light coalition wants to modernize the country, for which investments are necessary, said co-faction leader Britta Haßelmann: "That's a given." There should be no austerity budget.
Olaf Scholz, as part of the Traffic light coalition with the Greens and FDP, is currently negotiating a budget policy for 2025, aiming to reach an agreement this week. Despite the pressing need for closure, Christian Lindner and the FDP have so far rejected increasing taxes or declaring emergencies to close the budget gap.
In response to pressure from hardliners within the FDP parliamentary group, deputy FDP vice-party chairman Wolfgang Kubicki threatened to end the coalition if Scholz links a vote of confidence with a budget that he deems constitutionally questionable. However, industry leaders, trade unions, and economists are advocating for additional investments in Germany, which could help close the budget gap without violating the debt brake.
