The divisions in the budget dispute between the traffic light coalition are still deep. Foreign Minister Baerbock has urgently warned against a break in the coalition. That would only benefit “the enemies of liberal democracy”.
Federal Foreign Minister Annalena Baerbock warns against allowing the coalition of the SPD, Greens and FDP to collapse in the dispute over the budget. “The greatest favor we could do to the enemies of liberal democracy at home and abroad would be for another European democracy to go into early elections,” the Green politician told the Süddeutsche Zeitung.
“Our damn job as a government is to solve problems together, even in difficult times.” She has great confidence in the threesome of Chancellor Olaf Scholz (SPD), Vice Chancellor Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) to agree on a draft budget for the coming year by July 3, as planned. The three met for a confidential meeting on Sunday evening.
Hardened fronts on the debt brake
The sticking point in the budget negotiations is the debt brake. Lindner is sticking to it – the SPD and the Greens want to handle it more flexibly. The debt brake could be suspended by emergency resolution, as was already the case during the Corona pandemic.
Baerbock believes that the conditions are met now. “What greater emergency could there be than this war in the middle of Europe?” asked the Foreign Minister. “It would be fatal to have to say in a few years: We saved the debt brake, but lost Ukraine and the European peace order.”
SPD considers investments essential
The deputy SPD parliamentary group leader Achim Post told the newspaper “Welt” that investments in internal security were necessary, “that is, strengthening our police and security authorities, an efficient armed forces and strengthening social security.” This included, for example, investments in stable pensions, good health care and the fight against child poverty.
He therefore welcomed the proposals from the German Trade Union Confederation (DGB) and the BDI industrial association to set up a special fund for state investments in climate protection and infrastructure. The Green parliamentary group also commented positively on the proposals from the business community. They are calling for investments in the hundreds of billions, especially in new climate protection technologies, infrastructure and competitiveness, the newspaper report continued.
FDP will not be dissuaded
The FDP, however, remains firm in its opposition to additional loans. Budget spokesman Otto Fricke referred to the current legal situation, which requires a two-thirds majority in the Bundestag and Bundesrat for a new special fund that complies with the constitution.
In terms of content, state investments and special funds are also being overestimated in the current debate, as they only have a “long-term and sluggish” effect. “We must instead look at how we can dampen the permanent, disproportionate increase in spending at the Federal Ministry of Labour and Social Affairs in order to have more room for maneuver for our future.”
Negotiations are a test for traffic light coalition
After the sometimes drastic losses in the European elections, the budget negotiations have become a test for the coalition, a kind of question of trust for the alliance partners. The distribution of tax money between the individual departments is considered the basis for the cooperation of the traffic light coalition until the federal election in autumn 2025.
The budget is due to be finalized on July 3. After that, there will be a buffer of a few days at most until the NATO summit, which begins on July 9 in Washington.