Yesterday was the deadline: all ministries had to submit their estimated needs for 2025 to the Ministry of Finance. However, not everyone adhered to Minister Lindner’s austerity targets. Three ministries want more money.
By yesterday, the federal ministries had to submit their financial wishes for the 2025 federal budget to the finance minister. But whether all ministries did that?
Finance Minister Christian Lindner apparently doesn’t know yet at a reception in the evening. “I know, you poor things, you have to write about it somehow now, because now the date is here,” Lindner said to journalists. “But there’s nothing to say yet.”
Bad economy, high demand
Even without a clear statement from the Finance Minister, it has long been clear: drawing up the 2025 federal budget is likely to be a feat of strength. Especially because the tax estimate on May 16th – given the poor economy – will hardly provide any relief this time.
And the financial need in the security area is enormous, says SPD parliamentary group deputy Achim Post. It is important for the SPD not to play off internal security, external security and social security against each other. “Because everyone knows that we need all three securities and that is why this budget will of course be a special challenge,” says Post. “But I stand by it: We still have many months left and we will make a proper proposal at the end.”
Three ministries exceed austerity targets
In order to make this “proper proposal” for the budget, the SPD and the Greens want to reform the debt brake. The FDP rejects this: Finance Minister Lindner is relying on budget discipline and wants to reduce debt from 64 percent of gross domestic product to 60 percent. This would provide ten billion euros of scope in the medium term alone. “That means another three, maybe four years of discipline, then we may have a solidity dividend,” says Lindner.
Three or four years – the Foreign, Defense and Development Ministries don’t want to wait that long for the money. All three ministries want fresh billions as early as 2025 – for humanitarian aid and the Bundeswehr. The Russian war of aggression in Ukraine is causing their spending to rise. Foreign Minister Annalena Baerbock is therefore demanding over two billion euros more for her house. Development Minister Svenja Schulze and Defense Minister Boris Pistorius have even called for an additional 6.5 billion euros.
Is there a need for a reform of the debt brake?
In view of such billions of dollars that are missing, Daniel Bayaz, Green Finance Minister in Baden-Württemberg, is in favor of prioritizing spending – and for a reform of the debt brake: “When we have gone through all these construction sites and we say that there is still room for maneuver – and I believe that will be the case – then we won’t be out of our minds to say that we don’t want to open Pandora’s Box, but we also want to bring the debt brake into the new era.”
When it comes to the 2025 budget, there is a struggle over missing billions and over political principles such as the debt brake. This could push the traffic light coalition to its limits this time.