Lindner gives ministries more time to make savings proposals

Finance Minister Lindner is giving his cabinet colleagues more time to make savings proposals for the 2025 budget. There is still a “significant need for internal consultation”. He should now receive the budget plans by May 2nd.

Originally, the federal ministries would have had to present their plans for savings for the 2025 budget by April 19th – now they have more time. Finance Minister Christian Lindner has extended the deadline until May 2nd.

Finance Ministry circles said that the departments had asked for more time “as there is still a significant need for internal advice”. The Green-led ministries in particular had expressed this wish, as they could only meet for an internal meeting at the end of April. Lindner complied with this wish in consultation with Federal Chancellor Olaf Scholz.

Decision on the new budget by July

The budget for 2025 is to be decided by the cabinet by the beginning of July and then forwarded to the Bundestag. Lindner does not see this schedule at risk as a result of the postponement. “So I expect that in-depth internal consultation, dealing with the realities, will actually make further budget consultation within the Federal Cabinet easier,” said the FDP politician on the sidelines of a meeting of the finance ministers of the euro countries in Luxembourg.

The setup is considered extremely challenging because there is already a gap in the current plans in the double-digit billion range: we are talking about 15 to 25 billion euros. It is also unlikely that there will be any relief from higher income because the persistently weak economic situation is now also making itself felt there. The Ministry of Finance therefore called on the departments to make suggestions for savings.

“No additional funding”

This time there is no additional funding to be distributed, Lindner emphasized and at the same time made it clear: “If the registrations do not meet the department-specific upper limits, they cannot be accepted.” The FDP leader assumes that top meetings with Scholz and Vice Chancellor Robert Habeck will ultimately be necessary to draw up the budget. At the same time, Lindner emphasized that he still sees potential for setting priorities.

But where savings should be made is a matter of heated debate between the coalition partners. The SPD and the Greens also believe that prioritization is necessary. But you also want to talk about where there is additional scope for financing. In the past, they had repeatedly called for higher taxes for the rich and high-income people.

Baerbock warns of cuts at the foreign office

According to a “Spiegel” report, strict austerity measures are being imposed on the Foreign Ministry in particular. However, the Ministry of Defense is exempt from the austerity requirements. However, according to department head Boris Pistorius, the financial requirements there are significantly greater than previously estimated.

Yesterday, Foreign Minister Annalena Baerbock called for the hybrid threat to Germany and Europe posed by Russia to be taken into account in the budget negotiations. She advocated “for a security budget that thinks of internal and external security together,” she said and warned: “If my budget were cut by 34 percent, we would be unable to carry out the security measures or the diplomacy that we so urgently need these days .”

SPD leader Lars Klingbeil called on the federal government to increase support for Ukraine despite the strained budget situation. “We have already done a lot and we have to prepare ourselves for the fact that we will continue to help Ukraine for a long time,” he told “Spiegel”.

Associations are calling for the debt brake to be relaxed

With the savings in the current budget and the foreseeable cuts, central projects such as the expansion of rail transport, the heating transition and the decarbonization of industry are also in jeopardy.

Environmental and social associations as well as trade unions, on the other hand, called for a far-reaching relaxation of the debt brake and a special fund for climate protection, ecological restructuring and social services. The alliance appealed that “leeway must be created for long-term investments in social cohesion, climate protection and future prosperity”.

Social inequality and poverty have increased sharply in recent years. “Further cuts in social benefits and social infrastructure would further encourage many people’s fears of downward mobility. Instead, we now need sustainable investments in strengthening the social foundation of our society and in local public services,” demanded the alliance.