As of: March 8, 2024, 6:12 p.m
By: Max Schäfer
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Negotiations on the 2025 budget are coming up - and Finance Minister Lindner is faced with a mammoth project.
He imposes austerity measures.
New trouble threatens.
Berlin – The political discussions about next year’s federal budget are always difficult.
Every ministry wants to get as much money as possible out of the negotiations that traditionally take place in March.
Ultimately, the responsible ministers want to push through their prestige projects.
Given the budget crisis as a result of the Federal Constitutional Court's ruling and the weak economic situation, the situation before the negotiations on the 2025 budget is even more tense.
In focus: Federal Finance Minister Christian Lindner (FDP).
The finance minister takes on the role of the Swabian housewife who keeps the money together.
Lindner has prepared the other departments for austerity measures.
There will be “a joint effort by the federal government” to “resolve the need for action in the federal budget,” the
ARD capital studio
quotes from a letter from Lindner to his cabinet colleagues.
They should now make savings suggestions.
Finance Minister Lindner has to save billions in budget negotiations
Because: so far there is a big minus.
According to various estimates, the budget deficit is between 15 and 30 billion euros.
According to the Tagesschau,
the Ministry of Finance speaks
of a double-digit billion amount.
The budget department of the Lindner Ministry still has to determine exact figures, reports
Wirtschaftswoche
.
The economic situation makes it even more difficult for the traffic light coalition to draw up the budget.
The weakening economy is leading to lower tax revenues.
Exactly how high these will be will become clearer with the next tax estimate in May.
“Willingness to do without”: Lindner imposes upper limits on ministries for the 2025 budget
That's why Lindner is giving the other ministries upper limits in the negotiations for the 2025 budget.
The ministries are already aware of these from the 2024 financial plan and the negotiations between Olaf Scholz, Robert Habeck and Lindner from December 2023, reports the
Tagesschau
.
The Ministry of Finance wants to prevent ministers from demanding excessive amounts.
“If the registrations do not meet the department-specific upper limits, they cannot be accepted,” says Lindner’s letter, according to
the Tagesschau
.
The FDP budget politician Otto Fricke also makes it clear in the
Rheinische Post
: “Without the willingness of all ministries to make sacrifices, neither the 2025 budget nor the financial planning until 2028 can be successful.” The times are over when the federal and state governments were faced with increasing revenue could fulfill almost all wishes.
The ministries would have to decide what they would forego.
The traffic light coalition is also on the rocks in the negotiations on the 2025 budget
Due to the need for austerity, various government projects are also at risk - and with them the traffic light coalition itself. There was already a lot of dispute during the negotiations for 2024, for example regarding basic child welfare.
This is now in jeopardy, as
Wirtschaftswoche
reports with reference to the Ministry of Finance.
What is clear is that, given the war in Ukraine, no savings will be made on defense.
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Ministers in focus: Christian Lindner imposes upper limits on the ministries before the negotiations on the 2025 budget.
(Archive photo) © Britta Pedersen/dpa
Lindner does not foresee any additional spending on social services in the 2025 budget.
This has the potential for controversy: for Labor and Social Affairs Minister Hubertus Heil and Federal Chancellor Olaf Scholz, cutting social spending is out of the question.
The Greens see it similarly.
Debate about the 2025 budget raises the conflict over the debt brake again
In contrast, the finance minister wants to provide growth and investment incentives.
The first step is the Growth Opportunities Act, which will be decided on at the end of March.
The FDP politician is also calling for targeted tax cuts for companies.
According to Wirtschaftswoche,
this also includes
the abolition of the remaining part of the solidarity surcharge.
This in turn meets with resistance from the coalition partners.
According to Wirtschaftswoche
, Economics Minister Robert Habeck offered Lindner
to finance the reduction in corporate taxes through a “special fund” or by suspending the debt brake.
Lindner rejects this – just like tax increases.
Before budget negotiations: SPD and Greens call on Lindner to invest
This means that the old conflict over austerity pressure and easing of the debt brake is once again emerging in the budget discussions.
It is important to prioritize, said SPD deputy parliamentary group leader Achim Post of the
Rheinische Post
.
“At the same time, however, I also expect a constructive debate about the ways in which financing scope can be expanded.”
The Greens are also entering the negotiations with expectations.
“We can strengthen climate protection, create well-paid jobs and renew our prosperity if we dare to invest in our future now,” said Andreas Audretsch, deputy parliamentary group leader of the Greens, to the
Rheinische Post
.
The Greens are calling for an investment fund financed by loans and a reform of the debt brake.
This should enable more investments.
The coalition partners therefore have fundamentally different views that need to be united in the budget.
FDP budget politician Fricke says: “The 2025 budget will be a feat of strength.” (Max Schäfer with AFP)