The traffic light coalition is struggling to agree on the budget for the coming year. The Chancellor makes it clear that the financial scope is limited – at least for the time being.
Chancellor Olaf Scholz (SPD) has defended planned savings for the 2025 federal budget. “We have to make do with the money we have. There is no way around it,” said Scholz in a summer interview on the ARD program “Report from Berlin.”
The coalition has made a firm commitment to draw up a budget that is in line with the financial planning for the ministries. Discussions about this are very constructive. Scholz stressed that he is “very confident that we will get the budget underway in July”.
Scholz, Finance Minister Christian Lindner (FDP) and Vice Chancellor Robert Habeck (Greens) have begun difficult negotiations on the budget. Several ministries do not want to comply with savings targets. However, Lindner insists that the debt brake anchored in the Basic Law is adhered to.
“We will defend the welfare state”
On the question of declaring an emergency due to the war in Ukraine in order to increase the scope for new debt, Scholz said that the task now was “to do our homework first and go through every single budget item bit by bit and not to look for the easy way out”. All other questions did not arise now. “What we will do then when we have done everything and see that there is still a problem to be solved is something we will have to discuss together.”
The Chancellor also stressed, with regard to warnings from the SPD to avoid cuts in social spending: “We will defend the welfare state. And we will also develop it.” When it comes to citizens’ income, it is important to increase the accuracy.
“This means that no one can avoid working to overcome their own unemployment.” It should also not happen that someone works, conceals income and at the same time receives citizen’s allowance. This is why customs controls on illegal work are being expanded. The coalition will also pass tougher laws to this end, Scholz made clear.
When asked about an ongoing petition by members of the SPD against a rigid austerity policy, the Chancellor said: “According to the Basic Law, the federal budget is decided in the Bundestag, and that is also the right place to hold such debates.”
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
