Three-way talks with Lindner: Scholz has to help ministers with budget planning

Three-way talks with Lindner
Scholz has to help ministers with budget planning

Numerous ministers in the traffic light coalition want to spend more than the federal budget allows. Because the warnings from Finance Minister Lindner are not bearing fruit, those who are dissatisfied must now attend a special meeting with the Chancellor. There is a gap of 20 billion euros.

According to media reports, Chancellor Olaf Scholz personally got involved in the internal government dispute over the 2024 budget. As the “Süddeutsche Zeitung” and the “Welt” reported, citing government circles, three-way talks are now underway between the SPD politician Scholz, Finance Minister Christian Lindner from the FDP and the respective ministers. According to the “Süddeutsche Zeitung”, the Green Vice Chancellor and Economics Minister Robert Habeck approved the procedure.

According to “Welt”, ministers from all three parties must attend the special talks. The representatives of the Green-led Family and Foreign Affairs departments, the Red-led Interior and Defense ministries and the representatives of the liberal Ministry of Transport have proven to be particularly stubborn negotiators in the past few weeks. Overall, the spending requests are currently 20 billion euros above Lindner’s limit. In March, the difference was still 70 billion euros.

The only exception to Lindner’s cuts is the Ministry of Defence, which, in view of increased foreign policy threats, is to receive around two billion euros more than previously planned in the medium-term financial plan. Nevertheless, department head Boris Pistorius is one of the dissatisfied, reports the SZ, because the SPD politician had originally asked for additional funds of ten billion euros. In addition, he will most likely have to spend almost all of the extra money now planned for pay increases.

Bundestag is to decide on the budget on July 5th

The preparation of the federal budget for the coming year has been difficult for weeks. Lindner announced in May that he would not be able to present his draft budget to the cabinet on June 21, as planned. Last week, the Minister of Finance gave the individual ministries spending ceilings and asked them to submit proposals for savings in their budgets within these limits.

A few days ago, the Ministry of Finance said that Scholz and Lindner wanted the government draft to be available before the parliamentary summer recess. The Budget Committee of the Bundestag, which then continues to work with the draft, also expects this. The last regular cabinet meeting before the summer break would be on July 5th.

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