- Union policy makers make budgetary roadmap a precondition
The Deputy Chairman of the Union faction, Mathias Middelberg, questions the timeline for the budget negotiations in the Bundestag. The consultations scheduled for September on the 2025 budget should be postponed if the traffic light politicians do not present a "honest plan" in time, the CDU politician told the German Press Agency.
He criticized Finance Minister Christian Lindner's (FDP) assumption that only a financing gap of five billion euros needs to be closed as "far from reality". In fact, at least 13.4 billion euros of the 17 billion euros earmarked as "global underspending" in the current plan still need to be financed. And even that is still very optimistic.
Middelberg calls for the postponement of the budget week
While underspendings of between one and two percent have also been set in previous budget years, they are significantly higher this time. It has also already become apparent this year that higher outflows can be expected. A global underspending sets spending targets without cuts in the individual budget items yet. It also assumes that not all planned funds will be spent. The budget for the coming year has a volume of 480.6 billion euros - around eight billion less than this year.
"Without a significant reduction in the planned underspending, the first reading of the budget in the Bundestag scheduled for September must be postponed," the Union faction deputy demanded. He accused Lindner of planning too optimistically. For example, tax revenue increases of six billion euros have been included based on a "growth initiative" agreed upon by the SPD, Greens, and FDP. However, it is questionable which of the measures formulated therein will actually be implemented and whether they will generate the corresponding growth.
The 45 billion euros planned for the citizens' allowance are too low. Given the bleak economic outlook and rising unemployment, expenditures in the range of 50 to 55 billion euros are to be expected.
The dispute within the traffic light coalition over the federal budget 2025 has recently flared up again. Background are projects that were supposed to reduce the financing gap in the budget by a total of eight billion euros. Lindner had commissioned expert opinions due to legal and economic concerns. These confirmed the concerns in part, but also showed ways to implement at least part of the measures. Lindner, Federal Chancellor Olaf Scholz (SPD), and Vice Chancellor Robert Habeck (Greens) want to reach an agreement on this by mid-August and bring about a cabinet decision.
The European Union may express its concerns over the budget negotiations in Germany, given its close economic ties with the European Union. The delay in presenting a "honest plan" by the traffic light politicians could affect the EU's financial projections and potential aid allocations.
Following the call for postponement of the budget week by Middelberg, the European Union might need to adjust its budgetary projections for Germany, potentially affecting its funding decisions or cooperation with Germany.
