Press
Scholz, Lindner and Habeck negotiated the 2025 budget until the early morning. Apparently with success – the government is said to have reached an agreement.
Update from July 5, 8.12 am: Marcus Faber, Chairman of the Bundestag’s Defence Committee, expressed his satisfaction with the agreement reached by the traffic light coalition regarding the defence budget. Funke Media GroupAccording to a report by the news agency Reuters The FDP politician said: “The renewed increase in the defense budget underlines the high priority of modernizing the Bundeswehr.” Regarding the government’s draft, Faber said that the traffic light coalition was setting “the right priorities for the security of our republic.”
SPD MPs are also said to have expressed relief before the start of the special session in Berlin, reports dpaAt the beginning of the meeting, Labour Minister Hubertus Heil (SPD) said, referring to the British election: “It is a beautiful morning, the sun is shining, Keir Starmer will be Prime Minister, and we have a budget.”
Agreement in negotiations for 2025 budget: Traffic light coalition approves relief measures
Update from July 5, 7:48 a.m.: With their budget agreement, the leaders of the traffic light coalition also decided on comprehensive relief measures to stimulate the economy. The growth package could lead to additional growth of more than half a percent in 2025, which is 26 billion euros in additional economic output. dpa on Friday from coalition circles. Accelerated depreciation of investments and an improved research allowance are planned.
There will also be incentives for more employment. Employer contributions to pension and unemployment insurance will in future be paid directly as wages to employees who are already receiving a pension. “Start-up funding” will be introduced in the citizen’s allowance. If long-term unemployed people get a job and leave the citizen’s allowance, they will now be able to keep significantly more of their earnings in the first year without this being counted towards housing benefit, for example.
In addition, allowances are to be increased and the income tax rate is to be adjusted to inflation, government sources said. Tax exemption for overtime is also to be introduced. The traffic light coalition also wants to reduce bureaucracy. Mandatory practice checks are to be introduced in all ministries. There are to be special depreciation allowances for electric cars used for commercial purposes.
Green Party criticizes Lindner after budget agreement: “Very strongly walled in on certain issues”
Update from July 5, 7.35am: The Greens and the SPD are holding special meetings following the agreement in the budget negotiations. Before the Greens’ meeting began, the party’s parliamentary group leader, Katharina Dröge, said she expected a result that her group could support.
Regarding the decision to maintain the debt brake in 2025, the Green Party parliamentary group leader said: “In budget policy, Christian Lindner has very strongly walled himself in on certain issues and, in my view, has put them above other necessary issues.” Putting compliance with the debt brake “above security and defense” is “not a sensible prioritization,” stressed Dröge.
The details of the budget agreement are not yet public. But party leader Ricarda Lang has already expressed optimism about the agreement. German Press Agency she said before the start of a meeting in Berlin: “I think it is good that we are now demonstrating our ability to act in the geopolitical situation.”
Agreement in budget dispute: Linder prevails on debt brake
Update from July 5, 6:55 a.m.: In the budget negotiations, the traffic light government is said to have agreed to comply with the debt brake in the coming year. This is provided for in the agreement reached on Friday by the coalition leaders on the federal budget for 2025 and the financial plan until 2028, as the German press agency from government circles.
The SPD had previously campaigned for the debt brake to be suspended in 2025. Finance Minister Christian Lindner had always insisted on compliance with the debt brake.
Scholz, Lindner and Habeck wrestle over 2025 budget: breakthrough after long night of negotiations
First report: Berlin – The struggle over the 2025 budget was considered a test of endurance for the traffic light coalition. Now, however, after months of negotiations, the government is said to have reached an agreement in the dispute over the federal budget for the coming year and the growth package. This is reported by the German press agency citing coalition circles.
On Thursday afternoon, Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck (Greens) met again in the Chancellery. The negotiations are said to have lasted until after midnight. Nothing is yet known about the content of the agreement.
Breakthrough after months of budget negotiations: Traffic light coalition informs federal factions
The SPD and Green parliamentary groups will be informed about the breakthrough and the status of the negotiations in meetings on Friday at 7 a.m. Scholz and Habeck are also expected to attend the special meeting, reports the dpaThe FDP is to inform its MPs digitally at the same time.
Scholz shows optimism for federal budget: “Decide in the federal cabinet this month”
The government originally wanted to reach an agreement by this Wednesday. Now July 17 is being discussed for the cabinet decision. Previously, Chancellor Olaf Scholz had optimistically announced that the government would “decide on the budget in the federal cabinet this month,” reported the Mirror.
In order to reach the July 17 deadline, an early agreement in principle was necessary because the drafting of the budget law usually takes about ten days. From mid-September, the Bundestag will then deal with the draft budget, which could then be adopted in November or December.
Months of wrangling over federal budget: dispute over social budget and debt brake
Due to the disagreement on some aspects within the traffic light coalition, the negotiations dragged on for months. Individual departments such as the Foreign Office or the Development Ministry initially did not want to accept Lindner’s austerity targets in view of international obligations. The social budget was also controversial.
In addition, there was still a gap of around 10 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.(dpa/pav)
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