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Despite a €12 billion budget shortfall, Finance Minister Lindner remains optimistic before the Bundestag. The draft is legally airtight.
Germany's Federal Finance Minister, Christian Lindner, has vigorously defended the controversial draft budget for 2025, even within the ruling traffic light coalition. Addressing the Budget Week in the Bundestag, he declared, "This wasn't an illicit move." The draft adheres to legal standards. "We've taken a lesson from our mistake."
Last year, the Federal Constitutional Court scrapped €60 billion from the climate fund KTF, as the government had channeled unused corona credits to it. Since then, SPD, Greens, and FDP have been locked in an intense debate over proposed expenditures. Lindner cited the economy's "marked weakness." To combat this, the federal government is making record investments.
The budget still has a €12 billion deficit, which the traffic light coalition hopes will be mitigated by unspent funds. Traditionally, they had calculated with 2% of the total volume, which equated to less than €10 billion.
Union criticizes draft as reckless
The government is planning a budget with expenses of approximately €489 billion - just slightly less than the 2024 budget. The new debt in 2025, while respecting the debt brake, will total €51.3 billion, significantly greater than initially estimated. Investments are projected to reach €81 billion. SPD and Greens advocate suspending the debt brake and investing more, but this is currently impeded by the FDP.
Despite the daunting circumstances, the finance minister emphasized significant relief and performance improvements for citizens. The 2025 budget, for instance, envisions increased child benefits and higher tax-free allowances. According to Lindner, the state is forfeiting revenues to enhance citizens' purchasing power and foster private investments.
The Union denounced the draft budget as reckless. Deputy faction leader Mathias Middelberg also accused it of being "maximally unrealistic" and misleading. "No budget draft has ever contained such an extensive number of unsecured liabilities." It's a foregone conclusion that the federal government will face a financial crisis within the next year. The coalition only plans until the 28th of September - the date of the next federal election.
The Union's criticism of the budget draft was harsh, with Deputy Faction Leader Mathias Middelberg labeling it as "maximally unrealistic" and misleading. Despite this, Finance Minister Lindier, as the Minister of Finance, maintains his optimism, emphasizing the relief and performance improvements the 2025 budget promises to citizens.
