Setback for the traffic light coalition: Finance Ministry considers budget re-negotiations necessary

The traffic light coalition may have to fundamentally renegotiate its laboriously achieved compromise on the 2025 federal budget, as two scientific assessments have shown that certain measures are questionable from a constitutional perspective. Finance Minister Lindner had expressed concerns about the budget from the beginning, and now the Finance Ministry has confirmed the need for further discussions and parliamentary deliberations.

The assessments raise doubts about the planned measures, including loans to Deutsche Bahn and the autobahn company, as well as the use of funds from the state-owned bank KfW. The scientific advisory board and a legal opinion warn of a violation of the constitution, particularly regarding the use of emergency loans for the federal budget.

The Finance Ministry now believes spending cuts must be renegotiated, and measures to strengthen the targeting of social spending could also reduce the need for action. The budget negotiators had proposed three measures to close the financing gap, but doubts arose during negotiations.

The financing gap remains significant, and the traffic light coalition hopes to make up for it by not fully calling up all funds at the end of the year. However, the Finance Minister has already expressed his opposition to passing a budget with such a gap.

The opposition blames Chancellor Scholz for the failure of the budget.