Dispute over financing gap: Union politician sets condition for budget roadmap

Dispute over financing gap: Union politician sets condition for budget roadmap

The Bundestag is due to discuss the budget in September. A leading member of the Union faction believes that the prerequisite for this would be “honest planning”

The deputy chairman of the Union parliamentary group, Mathias Middelberg, considers the timetable for the budget discussions in the Bundestag to be questionable. The discussions on the budget for 2025, scheduled for September, should be postponed if the traffic light politicians do not present an “honest plan” in time, the CDU politician told the German Press Agency.

The assumption by Federal Finance Minister Christian Lindner (FDP) that only a financing gap of five billion euros would have to be closed was “far from reality,” criticised Middelberg. In fact, of the 17 billion euros that were earmarked in the previous planning as so-called global spending cuts, at least 13.4 billion euros still need to be financed. And even that is still a very optimistic calculation.

Middelberg calls for postponement of budget week

Although spending cuts of between one and two percent were planned in previous budget years, this time they are significantly higher. This year has also already shown that higher outflows of funds are to be expected. A global spending cut sets savings targets without making cuts in individual budget items. It also anticipates that not all of the budgeted funds will be spent anyway. Overall, the budget for next year has a volume of 480.6 billion euros – around eight billion less than this year.

“Without a significant reduction in the planned expenditure cuts, the first reading of the budget in the Bundestag, which is planned for September, must be postponed,” demanded the Union parliamentary group vice-chairman. He accused Lindner of planning far too optimistically anyway. For example, additional tax revenues of six billion euros were set aside on the basis of a “growth initiative” agreed by the SPD, Greens and FDP. It is questionable which of the measures formulated in it will actually be implemented and whether they will then generate corresponding growth.

The 45 billion euros planned for the citizens’ allowance are too low. In view of the gloomy economic outlook and rising unemployment, expenditure in the range of 50 to 55 billion euros is more likely.

In recent days, the traffic light coalition’s dispute over the 2025 federal budget has flared up again. The background to this are plans to reduce the funding gap in the budget by a total of eight billion euros. Lindner had commissioned expert reports on this due to legal and economic concerns. These partially confirmed the concerns, but also showed ways to implement at least some of the measures. Lindner, Chancellor Olaf Scholz (SPD) and Vice Chancellor Robert Habeck (Greens) want to reach an agreement on this and bring about a cabinet decision by mid-August.

Source: Stern

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts