Schwesig urges coalition to reach agreement in budget dispute

Mecklenburg-Vorpommern Minister-President Manuela Schwesig (SPD) has urged the coalition to reach an agreement in the newly ignited dispute over the federal budget for 2025. Schwesig emphasized the need for reliability and planning security for the people and economy in Germany.

Last week, Federal Finance Minister Christian Lindner (FDP) expressed legal concerns about financing paths for the 2025 budget and called for renegotiations. According to Lindner, there is a gap of around five billion euros that still needs to be closed.

Schwesig called on the coalition partners to quickly present a unified budget proposal. Meanwhile, Finance Minister Olaf Scholz reaffirmed payments to the railway and highway company in the 2025 budget, with a legal opinion confirming their legality.

The financing will be done through loans or equity increases. However, there are discussions regarding the budget gap and the use of gas price brake funds.

The Council of Economic Experts is skeptical, and there are concerns about loan repayment. Economist Veronika Grimm warns against an vulnerable budget and calls for cuts in subsidies, adjustments to retirement benefits, and stronger sanctions in the citizen's income to find the missing billions.

The government's neglect of the economy has frustrated businesses and employees, as shown by the budget dispute in the coalition.