Federal Budget 2025: Olaf Scholz Considers Budget Legally Sound
Image courtesy of : AFP (RALF HIRSCHBERGER)
Despite criticism from experts, Federal Chancellor Olaf Scholz believes that investments in infrastructure are legally feasible. Finance Minister Christian Lindner commissioned expert reports that cast doubt on the financing of the gas price brake and loans for rail and motorway companies. These uncertainties could lead to a shift of traffic to the roads and work against the government's climate targets if the track prices rise.
Scholz conceded that there is a funding gap of around five billion euros which, according to the SPD and the Greens, will not be closed by Lindner. SPD leader Saskia Esken is calling for the heads of government to work together to find a solution and present a balanced budget. The CSU criticises Scholz and describes the budget as chaotic. Discussions continue about the funding gap totalling 17 billion euros.
Lindner emphasises that the budget must not be unconstitutional and plans to take previous rulings by the Constitutional Court into account. The draft budget will be presented to the Bundestag for discussion in mid-August. Scholz remains confident that the investments can be implemented and emphasises the need to modernise the debt brake in order to cope with future tasks.
