Budget Gap: Lindner Struggles to Close 5 Billion Euro Gap

Federal Finance Minister Lindner has identified a 5 billion euro gap in the federal budget for 2025. He aims to avoid tax increases and discuss financing options within the government. SPD Chairwoman Esken accuses Lindner of overstepping boundaries.

Lindner proposes converting rail subsidies into equity capital to finance debt outside the debt brake. The initial budget gap was 17 billion euros, but it is expected to be reduced to 8-9 billion euros.

The remaining deficit of less than 2% of the total volume aligns with previous budgets. The federal government has agreed to submit the budget draft by August 16. Despite coalition disputes, the government remains optimistic about reaching an agreement on the budget.

The budget draft includes a global spending reduction of 17 billion euros that needs to be reduced. Future investments are a priority.

The budget is set to receive a new cabinet decision on August 14 and will then go to the Bundestag. Chancellor Scholz, Vice-Chancellor Habeck, and Finance Minister Lindner are determined to find a solution.