2024-07-13 10:41:07
After long negotiations, there is now an agreement. The traffic light parties have agreed on a budget for 2025.
After long negotiations, the leaders of the traffic light coalition have achieved a breakthrough on the 2025 federal budget and the growth package. t-online learned this from coalition circles after consultations between Chancellor Olaf Scholz (SPD), Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck (Greens). Other media reported this earlier.
Scholz, Lindner and Habeck met on Thursday afternoon. Details of the agreement were not initially disclosed. The SPD and Green parliamentary groups will meet at 7 a.m.
The coalition also wants to comply with the debt brake. This is what the agreement on the 2025 federal budget and the financial plan up to 2028 stipulates.
Scholz, Habeck and Lindner have negotiated frequently in recent weeks. They actually wanted to reach an agreement by this Wednesday. Now July 17 is being discussed for the cabinet decision. In order to reach this date, an agreement in principle was necessary soon, because the drafting of the budget law usually takes about ten days. From mid-September, the Bundestag will be considering the draft budget, which could then be passed in November or December.
Individual departments such as the Foreign Office or the Development Ministry initially did not want to accept Lindner’s austerity measures in view of international obligations. The social budget was also controversial. In addition, there was still a gap of around ten billion euros that needed to be closed.
The SPD in particular, in view of the financial burdens caused by the war in Ukraine, pushed for the debt brake to be suspended again in order to have more room for investment. This was out of the question for Lindner’s FDP. The SPD rejected cuts in the social budget.
Only minimal growth is expected in Germany this year. Companies are holding back on investments, and private consumption is not picking up either. Business associations have long complained about disadvantages of the location, such as high taxes and duties, a lack of skilled workers and too much bureaucracy.
This is where the government wants to start with the “growth boost”. Scholz had already said that the federal government wanted to promote private investment. He promised improved tax deductions for companies. In addition, it should be easier for parents to work and work incentives should be increased, including through taxation.