Always on the edge of the abyss, always taking a step back just in time. Chancellor Olaf Scholz’s coalition has once again dodged one of its usual crises, which this time had hit in the middle of the summer holidays due to criticism of the draft budget for 2025 by one of its partners, the finance minister, the liberal Christian Lindner. The leaders of the three parties that govern together – Social Democrats, Greens and Liberals – reached a new compromise on Friday that allows it to be sent to the Bundestag (the lower house) for parliamentary processing to begin.
“The provisions on the debt brake of the Basic Law will continue to be complied with [la constitución alemana]”They will not be circumvented,” a government spokesman announced, referring to Lindner’s demands to adhere to the strict rule limiting the public deficit to 0.35% of gross domestic product except in cases of emergency.
Scholz, Lindner and Vice-Chancellor and Minister for Economic Affairs Robert Habeck, a Green, had announced a budget pact at the beginning of July after months of wrangling between the Liberal Party, which demanded cuts, and the other two parties, which did not want to give up the Green agenda or social spending. Peace had been established between the three partners, or so it seemed, because a few days ago Lindner began to question the viability of some of the budget items and to propose measures that clearly contradict the policies of his partners.
Just when it seemed that the tripartite government was about to plunge into another long internal battle, the chancellor himself announced the new compromise on Friday: “The draft budget for 2025 is ready in time for the deliberations in the Bundestag. This is an important boost for security, cohesion and further growth,” he said on his social networks.
The July agreement left a financing gap of 17 billion euros in the air, which the government wanted to reduce to 9 billion euros, but which has now been reduced to 12 billion euros. One of the new features is a capital injection of 4.5 billion euros for Deutsche Bahn, the state-owned railway company, which will replace the planned subsidies and does not count towards the debt limit.
Lindner had angered his partners last week when he suggested in a television interview that the July agreement was in jeopardy: “It has become clear that there are constitutional risks and doubts about its concrete implementation,” he said, revealing that the three partners were once again sitting down to negotiate.
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The Liberals have spent the past few days putting forward proposals and making statements that frontally attack the policies of their partners, in an attempt to distance themselves from them and present a profile of their own ahead of the regional elections in Thuringia and Saxony, which are due to be held on 1 September. Lindner’s party, which is below the minimum 5% guaranteeing parliamentary representation in the polls, wants to give more space to private cars in cities, by eliminating bicycle lanes and pedestrian areas and allowing free parking. It has also suggested reducing social benefits, the so-called “free parking”. pension money.
The Bundestag is due to debate the 2025 budget for the first time in its first sitting week after the parliamentary summer recess, which begins on 10 September.
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