2024-05-13 11:53:42
Federal ministries are said to have allowed themselves around 20 billion euros more than originally estimated by Finance Minister Lindner. Lindner’s reaction was probably clear.
According to media reports, the dispute over the 2025 state budget and the exceeding of the savings targets of several federal ministries are said to have been the reasons for FDP Finance Minister Christian Lindner’s delay in pension package II. Hubertus Heil’s Federal Ministry of Labor (SPD) alone has reported almost eight billion euros in additional spending for 2025 than planned in the medium-term financial planning, the “Rheinische Post” reported on Wednesday, citing government circles.
Overall, the departments’ registrations for the 2025 budget would be around 20 billion euros above the spending limit set by Lindner, reports the “Handelsblatt”. In addition to the Ministry of Labor, the Ministry of the Interior, the Ministry of Development and the Ministry of Foreign Affairs also did not adhere to the requirements. Lindner then initially blocked the cabinet decision on pension package II planned for this Wednesday, report “Handelsblatt” and “Rheinische Post”.
Meeting between Scholz, Lindner and Habeck
Chancellor Olaf Scholz (SPD) confirmed on Tuesday after a planned meeting with Lindner and Vice Chancellor Robert Habeck (Greens) that the pension package should come this month. As the “Rheinische Post” reports, Lindner’s spending caps for the departments in 2025 are said to have been accepted at the same time.
There has been a dispute over the state budget for the coming year for months, and tough negotiations are expected. Lindner had given the ministries until the beginning of May to submit their budget proposals. According to the ministry, all reports were received. The budget plan is to be approved in the cabinet at the beginning of July, and after the summer break the plenary session in the Bundestag will deal with it.
Greens want to reform the debt brake
Green party deputy Andreas Audretsch warned the FDP against delaying the planned pension package II because of the budget dispute. “With the pension package, we are preventing pension levels from falling in order to prevent poverty in old age,” he told the “Rheinische Post”. “Above all, we protect women from bitter poverty in old age. We will not pit the dignity of people in old age against other projects.” Audretsch also reiterated the Greens’ call to reform the debt brake.
The German Federation of Trade Unions (DGB) also warned of a further delay in the pension package. “The permanent stabilization of pension levels was one of the important security promises from the coalition agreement in order to prevent employees from falling into poverty in old age,” explained Anja Piel from the DGB. “The traffic light must agree on the renewal of this great promise as quickly as possible; it owes it to all employees.”
The Ministry of Labor and Lindner’s Ministry of Finance agreed in March to partially fund the statutory pension insurance. The pension level is to be set at 48 percent for the period after 2025 to 2029. The contributions are expected to increase in the medium term, to 22.3 percent by 2035. However, there are calls for improvements from the ranks of the FDP.