Federal Finance Minister Christian Lindner spoke about a financial gap of five billion euros in the German budget for 2025 and expressed the belief that it can covered in time. However, he spoke of a threat to the “debt brake”.
In his regular “summer” interview on German public broadcaster ZDF's second channel, Mr Lindner rejected accusations that he had reopened the debate on issues already agreed upon within the governing coalition. Instead, he pointed out, special experts had been agreed to examine certain points and are now expressing their concern, especially regarding the constitutionality of subsidies intended for German Railways (DB) and motorways. Since it is not clear whether they can be financed, experts estimate that the “debt brake” is likely to be at risk. The Ministry of Finance then comes to the conclusion that the specific costs should be renegotiated between the government partners and awaits the proposals of the Greens for saving resources. Mr. Lindner assured, however, that “there will be no tax increases for the working middle class”.
The opposition, for its part, is calling for cuts in social benefits. Christian Union (CDU/CSU) parliamentary group secretary Torsten Frei told the “Rheinische Post” that “it is obvious in which areas cuts will have to be made” and specifically referred to welfare benefits and overseas development aid. Mr. Fry warned that investment spending is too low while consumer spending is too high. “This should change, if we don't want to risk Germany falling even further behind as a place for entrepreneurship,” he added.
