There is not much time left for budget negotiations. But the governing parties are insisting on fundamental positions and are clearly moving towards confrontation.
In the increasingly heated budget dispute between the traffic light parties, the FDP of Federal Finance Minister Christian Lindner is insisting that it is against a renewed suspension of the debt brake and is at the same time moving more clearly towards confrontation with the SPD. FDP General Secretary Bijan Djir-Sarai warned the larger coalition partner in Berlin against steps that are toxic for prosperity in Germany. “The debt populism of the SPD in particular is also dangerous for the future and development of our country,” said Djir-Sarai after a presidium meeting of his party.
SPD insists on more debt leeway
The SPD, on the other hand, insists on greater leeway when it comes to new debts. The war against Ukraine represents “an emergency that we cannot deal with from a normal budget without painfully neglecting our duties,” said party leader Saskia Esken after the SPD executive committee meeting. And: “It is quite clear that we as the SPD are not prepared to let our solidarity with Ukraine be played off against the continued existence of our solidarity with our own people.” She therefore appeals to people not to take any option off the table too quickly, including a renewed suspension of the debt brake.
Negotiations are currently underway in the federal government over the 2025 federal budget. Billions of dollars worth of holes need to be plugged. Several departments do not want to comply with Lindner’s savings targets. Chancellor Olaf Scholz had defended planned savings for the budget. On the question of an emergency due to the war in Ukraine, he recently said that the point now was “to do your homework first and go through every single budget item bit by bit and not to look for the easy way out”.
Chancellor promises relief for economy
On Monday, the Chancellor promised relief for the economy. The federal government wants to promote private investment, said the SPD politician at the Industry Day in Berlin. “I could imagine that in terms of depreciation and research funding, we could go even further than we have achieved with the Growth Opportunities Act.” However, this would also require the approval of the states. The federal government’s Growth Opportunities Act, which provides relief for companies, was significantly smaller in volume than planned after a mediation process between the Bundesrat and Bundestag.
When asked whether the coalition would agree on a draft budget for 2025, Scholz said: “Yes.” It looks very likely. The draft is to be approved by the cabinet in July. “Investments in the future” for Germany will also be a high priority next year. He went on to say, with regard to energy prices and the climate-friendly restructuring of the economy, that he is aware that the transformation represents a challenge for Germany as a business location due to the different levels of energy prices worldwide.
Lindner sees his austerity course confirmed
Meanwhile, Lindner sees his austerity course confirmed by the summer interviews with Scholz and Union parliamentary group leader Friedrich Merz (CDU). “The debt brake applies and we have to make do with the money we have. And that means, among other things, that more people who could work are working instead of receiving citizen’s allowance. And we have to work on the laws again, we have to tighten them up,” Lindner told the news channel Welt TV.
He supported the demand of the Young Group of the FDP parliamentary group in the Bundestag to ensure investment in education through austerity measures elsewhere. “The debt brake is not a ‘would be nice if’ option, but intergenerational justice enshrined in the Basic Law. It must be clear to everyone: without a debt brake, without us,” the chairman of the Young Group, Jens Teutrine, told the “Bild” newspaper (Monday). The group comprises around a third of the 91 FDP members of the Bundestag.
Three guidelines of the Greens
“We are not conducting these negotiations in the open,” said Green Party Chairwoman Ricarda Lang after a meeting of her party’s federal executive board. The Greens have three guiding principles: Firstly, “that we position ourselves well and securely in foreign policy at a time of global threat.” Secondly, “we do not want an austerity budget that sets us back in terms of climate protection.” In addition, internal cohesion must be strengthened, stressed the co-chair. This is not just about fighting poverty, but also about people with middle incomes and affordable housing for young families. “It is clear to us that we will defend the welfare state.”
Left-wing Social Democrats from the “Forum DL21” forum submitted a member request to the SPD executive board regarding the budget negotiations. The forum’s co-chairman, Erik von Malottki, told the “Tagesspiegel” (Monday): “First and foremost, we want a budget to be put in place that does not lead to worse conditions for large sections of the population. For example, through cuts in daycare centers or pensions.” Malottki also stressed: “We do not want a coalition breakdown.”
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.
