Traffic light coalition: Lindner gives ministries more time to make savings proposals

Finance Minister Christian Lindner (FDP) is giving his cabinet colleagues more time to come up with savings proposals for the 2025 budget. The ministries were originally supposed to submit their registrations for the coming year by April 19th. According to information from the German Press Agency, this deadline has been extended to May 2nd.

Finance Ministry circles said that the departments had asked for more time “as there is still a significant need for internal advice”. The Green-led ministries in particular had expressed this wish, as they could only meet for an internal meeting at the end of April. Lindner complied with this wish in consultation with Chancellor Olaf Scholz (SPD).

The budget for 2025 is to be decided by the cabinet by the beginning of July and then forwarded to the Bundestag. Lindner does not see this schedule being jeopardized by the postponement. “So I expect that in-depth internal consultation, dealing with the realities, will actually make further budget consultation within the Federal Cabinet easier,” said the FDP politician on the sidelines of a meeting of the finance ministers of the euro countries in Luxembourg.

Preparing the budget for 2025 is considered extremely challenging because there is already a gap in the current plans in the double-digit billion range – we are talking about 15 to 25 billion euros. It is also unlikely that there will be any relief from higher income because the persistently weak economic situation is now also making itself felt there.

Lindner: No additional funding to be distributed

The Ministry of Finance therefore called on the departments to make suggestions for savings. This time there is no additional funding to be distributed, Lindner emphasized and at the same time made it clear: “If the registrations do not meet the department-specific upper limits, they cannot be accepted.”

The FDP leader assumes that top meetings with Chancellor Olaf Scholz (SPD) and Vice Chancellor Robert Habeck (Greens) will ultimately be necessary to draw up the budget. “This will be a task that will be carried out at the top of the government under the leadership of the Ministry of Finance,” he told the German Press Agency.

At the same time, Lindner emphasized that he still sees potential for setting priorities. But where savings should be made is a matter of heated debate between the coalition partners. The SPD and the Greens also believe that prioritization is necessary. But you also want to talk about where there is additional scope for financing. In the past, they had repeatedly called for higher taxes for the rich and high-income people.

SPD leader Lars Klingbeil called on the federal government to increase support for Ukraine despite the strained budget situation. “We have already done a lot and have to prepare ourselves for the fact that we will continue to help Ukraine for a long time,” he told “Spiegel”.

Social associations are calling for the debt brake to be relaxed

Environmental and social associations as well as trade unions called for a far-reaching relaxation of the debt brake and a special fund for climate protection, ecological restructuring and social services. “Commit yourself to a contemporary and sustainable financial and budget policy that creates scope for long-term investments in social cohesion, climate protection and future prosperity,” the alliance appealed to the federal government and the “democratic opposition”.

With the savings in the current budget and the foreseeable cuts, key projects such as the expansion of rail transport, the heating transition and the decarbonization of industry are in jeopardy. Social inequality and poverty have increased sharply in recent years. “Further cuts in social benefits and social infrastructure would further encourage many people’s fears of downward mobility. Instead, we now need sustainable investments in strengthening the social foundation of our society and in local public services,” demanded the alliance.