Bundestag - Scholz sticks to his guns: budget decision by the end of the month
Federal Chancellor Olaf Scholz reiterated in the Bundestag that the cabinet will pass the budget for 2025 by the end of July. He did not set an exact date during a parliamentary interrogation. "We will decide on the budget in this month in the Federal Cabinet as planned," said the SPD politician. The Bundestag usually debates the budget after the summer break until the end of the year. "There will be no disruption to this timeline."
Scholz has been in negotiations with Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck (Greens) about the budget for weeks. Initially, they wanted to finish by this Wednesday. Now, the 17th of July is being considered for the cabinet decision. To meet this deadline, however, a consensus on principles is necessary in the coming days, as the drafting of the budget law usually takes approximately ten more days.
Special session of the SPD faction on Friday
The individual items have been largely agreed upon, but there is still a billion-dollar gap that needs to be closed. The SPD is pushing for the debt brake to be suspended again to have more room for maneuver. This is not an option for Lindner. The decision ultimately lies with the Bundestag, which will deal with the budget draft from September - if the cabinet agrees.
The SPD parliamentary faction is pushing for a consensus on principles in the budget negotiations by Friday. Fraktions business manager Katja Mast is demanding clarity on the budget draft before Parliament goes into the summer break until mid-September. Friday is the last sitting day. "I am optimistic that we will have political guiding principles by Friday," says Mast. It is "our expectation" that the faction will be informed about the results of the negotiations in a special session on Friday.
- Federal Chancellor Olaf Scholz, during a parliamentary interrogation, confirmed that the Federal Government, including Christian Lindner as Finance Minister and Robert Habeck from the Greens, will finalize the budget for 2025 by the end of July in the Federal Cabinet.
- The SPD's parliamentary faction business manager, Katja Mast, has called for a consensus on budget principles to be reached by Friday, emphasizing the importance of obtaining clarity before the summer break in mid-September.
- Olaf Scholz, the SPD politician, mentioned that the Bundestag usually debates the budget after the summer break, with the discussions continuing until the end of the year, maintaining no disruption to the usual timeline.
- Christian Lindner, the FDP's Finance Minister, is reportedly not in favor of suspending the debt brake once again, going against the SPD's request for more financial flexibility.
- The German government's budget negotiations, led by Olaf Scholz and involving Christian Lindner and Robert Habeck, have been ongoing for weeks, and an initial finishing date of this Wednesday was mentioned, but now a cabinet decision is being considered for July 17th.
- In Berlin, the coalition government is working diligently on finalizing the budget resolution for Germany, with the Bundestag preparing to review and approve the draft in September, dependant upon the cabinet's agreement by the end of July.
