According to insiders, the federal government no longer expects an agreement on the draft budget for 2025 to be reached by the beginning of July.
The July 3 deadline for the cabinet decision cannot be met, the Reuters news agency learned from two insiders on Tuesday. The “Spiegel” newspaper also reported. “July 3 is no longer valid,” coalition circles said, according to the magazine. “We need a little longer.”
According to Reuters, the new date being considered is July 17. This means that all deadlines for submitting the draft to the Bundestag must still be met.
However, a spokeswoman for the Federal Ministry of Finance was cautious when asked by Reuters. “Discussions on the draft budget for 2025 and the measures to overcome the weak growth are still ongoing,” she said. “The aim remains to reach a political agreement and a cabinet decision in July.”
For weeks, Chancellor Olaf Scholz (SPD), Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck (Greens) in particular have been negotiating details of the budget for 2025 and financial planning up to 2028. In addition, a dynamisation package for more economic growth is planned.
The dispute is mainly about how to close a financial gap of at least 25 billion euros. Several ministries, such as the Foreign Office, the Development Ministry and the Labor Ministry, are planning significantly higher expenditure than the financial planning envisaged.
Lindner is therefore insisting on savings and compliance with the debt brake. Parts of the SPD and the Greens, however, are relying on exceptions to the debt rule in order to allow more loans. The SPD parliamentary group increased the pressure on Monday: All three parliamentary wings, from the Conservatives to the Left, called for exceptions to the debt rule.
