Budget with new priorities
Lindner relies on investment instead of austerity
March 24, 2024, 8:57 p.m
Listen to article
This audio version was artificially generated. More info | Send feedback
Despite financial bottlenecks, Finance Minister Lindner is planning a budget that looks to the future. He focuses on innovation instead of savings and wants to strengthen the economy and defense. Belts should be tightened in the social sector.
Despite tight budgets, Federal Finance Minister Christian Lindner is confident that the traffic light government will ultimately agree on a future-oriented budget. “There is no pressure to save, there is pressure to change,” said the FDP chairman on ARD. Germany must do more for its economic competitiveness and also its defense.
In the social sector, however, Germany should exercise restraint for three years and not add any new benefits. It’s not about cutting existing services. The welfare state is already by far the largest item in the federal budget. “And we have to pay attention to more effectiveness.” Lindner added that more money is being invested than ever before. But it is also about private investments. Specifically, he is currently working on mobilizing the many billions of euros that insurers have to expand the electricity and hydrogen networks.
Lindner recently omitted key points for the 2025 budget draft. This is also why very competitive budget negotiations are expected again in the traffic light coalition made up of the SPD, Greens and FDP. At the beginning of July – shortly before the parliamentary summer break – the cabinet is expected to approve a draft budget.
The Ministry of Finance recently spoke of a need for action in the lower double-digit billion range for the 2025 budget. The coalition must therefore raise this amount through cuts and additional revenue. According to an insider, the gap was estimated at 15 to 25 billion euros.
Finance ministry circles said that after years of extremely high spending due to the crisis, the traffic light was now in the process of being adjusted. The new tax estimate is expected in mid-May. Depending on the outcome, it could ease the need for adjustment or exacerbate the distribution struggles within the government.