Budget Dispute: Schwesig Urges Coalition to Reach Agreement

The ongoing budget dispute within the traffic light coalition has drawn criticism from Prime Minister Schwesig. Finance Minister Lindner has identified financing gaps in the 2025 budget draft and is committed to adhering to the debt brake.

The Greens reject austerity measures, while the FDP rules out tax increases. Chancellor Scholz and Vice Chancellor Habeck are currently on vacation, but a revised budget draft must be submitted by the next cabinet meeting on August 14. The government aims to forward the budget to the Bundestag for a vote at the end of November.

The dispute revolves around the use of unused KfW loans and loans to the railway and highways. The government plans to financially strengthen the railway through a capital increase, but there are concerns about repayment.

The budget impasse has raised doubts about the coalition's ability to reach an agreement.