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Lindner is missing 25 billion – planning the federal budget will be a “show of strength”

2024-03-08T11:29:06.248Z

Highlights: Lindner is missing 25 billion – planning the federal budget will be a “show of strength”.. As of: March 8, 2024, 12:13 p.m By: Nils Hinsberger CommentsPress split: FDP is pushing for savings, the Greens want to invest. The federal budget for the coming years could be even more challenging than funding for 2024. Despite the loss of 100 billion euros, the goal of financing the military at 2 percent of gross domestic product must be achieved.



As of: March 8, 2024, 12:13 p.m

By: Nils Hinsberger

Comments

Press

Split

The planning of the federal budget until 2028 is pending.

The FDP is pushing for savings, the Greens want to invest.

Trouble at the traffic lights again?

Berlin – The eternal struggle over the federal budget continues even after the almost botched financing for 2024.

The FDP-led Finance Ministry under Federal Minister Christian Lindner has given its assessment of the current situation, reported the

Frankfurter Allgemeine Zeitung

(FAZ).

Result: It doesn't look good.

State Secretary Wolf Heinrich Reuter is said to have announced this.

The problem with the current financial planning of the traffic light coalition is that there is already a financial requirement “in the low double-digit billion range” for 2025 alone, according to the

FAZ.

Government circles specify this figure as 25 billion euros.

But it's not just the financing gap that could cause problems.

The federal government not only has to agree on the budget for 2025, but also plan financing until 2028.

And that could cause a lot of trouble.

Federal budget “will be a show of strength” – FDP announces austerity measures for 2025

With a view to the upcoming negotiations for the 2025 budget, FDP chief budget officer Otto Fricke announced that “the ministries will set priorities in their respective individual plans and, more importantly, decide what they will forego.”

Like companies and private individuals, the state also has to make do with the resources it has at its disposal, Fricke told the

Rheinische Post

.

Without reserves or tailwind from the economy, as well as increasing military spending, budget planning becomes a “tour de force,” said Fricke.

The 2025 budget will be a tour de force.

FDP chief budget officer Otto Fricke

For the coming years, the federal government will also have to compensate for the expiring special funding for the Bundeswehr.

Despite the loss of 100 billion euros, the goal of financing the military at 2 percent of gross domestic product must be achieved.

All NATO countries had agreed on this financing volume.

Because of the current threat from Russia, the Defense Ministry needs more money from the core budget, reported the

FAZ

.

Currently around 52 billion euros are earmarked for defense by 2027.

By 2028, this value must increase to around 80 billion in order to achieve the 2 percent target.

“Structural consolidation needs” – Lindner wants to maintain the debt brake

In recent years, the government has had more money available than was allocated in the respective federal budgets, said Reuter.

The ministries would no longer have this planning flexibility.

According to the Ministry of Finance, there is a “clear need for structural consolidation”.

This means that the federal government has to return to the old financial planning for 2025 through savings.

Lindner also repeated the demands in his statement of budget and financial plan.

He also wants to “strengthen the business location”.

The debt brake is therefore likely to remain in place for future financing issues.

The federal budget for the coming years could be even more challenging than funding for 2024.

© Britta Pedersen/picture alliance/dpa

Within the SPD, people are also in favor of prioritization in the coming budget debates.

“At the same time, however, I also expect a constructive debate about the ways in which financing scope can be expanded,” the

Rheinische Post

quoted SPD parliamentary group deputy Achim Post as saying.

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Andreas Audretsch, deputy leader of the Green Party, has meanwhile spoken out in favor of further investments.

This should modernize the country and establish new economic dynamics.

“We can strengthen climate protection, create well-paid jobs and renew our prosperity if we dare to invest in our future now,” he told the

Rheinische Post

.

Ampel has already started budget negotiations for 2025

The Ministry of Finance has already called on all departments to submit proposals for possible savings, reported the

dpa

.

The ministries have until April 19th to do this, according to a letter from Lindner.

The budget should be decided by the cabinet at the beginning of July and adopted in December.

Last year, a ruling by the Federal Constitutional Court caused a heated dispute within the traffic light coalition over the planned budget financing for 2024. The reason was the illegal use of money from the climate and transformation fund.

The ruling led to a budget freeze.

After long negotiations and even calls for a change of government, the parties agreed on a budget in February 2024.

This decision should actually have been made in December 2023.

(nhi)

Source: merkur

All news articles on 2024-03-08

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