The traffic light coalition, consisting of the Social Democratic Party (SPD), the Free Democratic Party (FDP), and the Green Party, has encountered a setback in their efforts to finalize the federal budget for 2025. The Finance Ministry has expressed concerns about the budget's compliance with the debt brake, a constitutional provision that limits government borrowing.
Two scientific assessments of the proposed measures have raised questions about their constitutionality and economic viability. The Finance Ministry now believes that spending cuts and further discussions within the government and parliament are necessary.
The proposed measures, which aimed to address a 17 billion euro financing gap, included loans to Deutsche Bahn and the autobahn company as well as funds from the gas price brake. However, doubts arose during the negotiations, prompting a review of the measures.
The scientific advisory board and a legal opinion have both warned of constitutional risks associated with the proposed measures. This setback has caused tensions within the traffic light coalition, with the FDP leader, Finance Minister Christian Lindner, expressing doubts about the measures from the beginning.
The coalition now faces the challenge of finding alternative solutions to fill the budget gap before the budget is passed in the Bundestag. Meanwhile, the ministries have once again been criticized for having billions of euros left unspent from previous years' budgets, raising concerns about overspending and inadequate project planning.
