2024-07-12 14:03:14
The traffic light coalition had been wrangling over the federal budget for a long time. On Friday morning, the leaders presented the agreement. Then surprising news made the rounds.
The traffic light coalition’s draft for the federal budget for 2025 is ready. This was announced by the leaders of the SPD, Greens and FDP after a marathon night meeting early Friday morning. This was preceded by weeks of wrangling over the details of the budget. In addition to the draft budget, the coalition also agreed on a growth package that is intended to stimulate the German economy. You can read the decisions from the night here.
On Friday morning, Chancellor Olaf Scholz (SPD), Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) appeared before the press at the Berlin Federal Press Conference to present the individual points of the draft. “Sleep is overrated,” said a sleepless Chancellor at the beginning. However, they “absolutely” wanted to finish before the end of this week’s meetings and before the DFB team’s European Championship quarter-final match against Spain that evening, he added with a smile. He also set out the further schedule: the cabinet is to approve the draft budget on July 17.
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Scholz said of the long budget negotiations: “We certainly didn’t make it easy for ourselves.” The Chancellor said that they always “fought hard for the issue” and sought compromises – “sometimes half the night, sometimes all night.” However, one thing was not an alternative: “Losing your nerve, giving up, running away from responsibility,” Scholz explained. “As Chancellor, I would have no understanding for that, and the citizens certainly wouldn’t.” The coalition should not concern itself with itself. “The three of us are always concerned with the issue,” he said, addressing Habeck and Lindner.
The 2025 budget should ensure security and stability in times of unrest and uncertainty, said Scholz. Russia’s attack on Ukraine, climate change, irregular migration and economic and social changes are causing concern among citizens, said the Chancellor.
This course of action is particularly evident in the area of security. Scholz announces: “From 2028, i.e. after the special fund has been completely spent, the regular defense budget will then amount to 80 billion euros in order to continue to ensure the two percent.”
Vice Chancellor and Minister of Economic Affairs Robert Habeck broke down the night’s resolutions into three points: “Economy, climate, children”. This is the “triad” that sums up the budget and accompanying resolutions, said Habeck. “With these resolutions, we are securing a successful climate policy. We are strengthening the children in our country and ensuring new economic dynamism.”
A “huge gap in justice” has been closed, particularly for children, explained Habeck. This has happened as a result of the major debate about basic child benefits: “Many more” families who were already entitled to benefits are now claiming state benefits. Habeck suspects that this had previously failed due to ignorance or bureaucratic hurdles.
Federal Finance Minister Christian Lindner stressed that this was not a “savings budget”. This year, the federal government will spend a total of 489 billion euros with the supplementary budget. 52 billion euros of this is earmarked for investments. Borrowing will rise to 50.5 billion euros. In 2025, spending of 481 billion euros is then planned. Investments will be 57 billion euros, and borrowing will be 44 billion euros.
Lindner also stated that these were not purely budgetary discussions. “We have agreed on the common principles of our government action,” said the FDP leader. The past few weeks have been “particularly intense.”
And so Chancellor Scholz also described the agreement on the draft budget for 2025 as a strengthening of the traffic light coalition. The decisions are good for Germany and also for the EU, he said in response to speculation that the traffic light coalition could collapse due to the budget dispute. “Germany must prove itself to be an anchor of stability.” They had prevented the different interests from being played off against each other. “I can sign every sentence of the agreement,” he stressed.