Dispute over budget 2025
Lindner sends sharp warning to the SPD
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In order to plug the billion-euro holes in the 2025 budget, SPD leader Klingbeil is protesting against the finance minister's austerity dictates. Lindner's response follows promptly: in order to loosen the debt brake or raise taxes, the traffic light coalition must seek its majority beyond the FDP.
In the debate about the debt brake, Federal Finance Minister Christian Lindner has called on the SPD to comply with the coalition agreements. For higher taxes and the abolition of the debt brake, “he would have to seek a majority beyond the FDP,” Lindner told the “Bild” newspaper, referring to comments by SPD leader Lars Klingbeil on Lindner's budget policy. The SPD has signed a coalition agreement “in which tax increases and a weakening of the debt brake are ruled out,” Lindner said.
With his comments, Klingbeil is “publicly questioning” the coalition agreement, although he knows that these guard rails are immutable for us,” criticized Lindner. The difficult budget situation is not due to insufficient tax revenues, but to excessive spending. The FDP politician's criticism of the coalition partner SPD was a reaction to Klingbeil's recent comments in an interview. Klingbeil had said in an interview with Reuters TV that “it is not possible to just save 30 or 40 billion euros.”
Klingbeil: SPD does not go along
Klingbeil spoke of a clear message to Lindner that the Social Democrats would not go along with this path. Instead, the SPD is relying on revenue increases or a different approach to the debt brake. Nevertheless, Klingbeil was confident that the federal cabinet would agree on the draft budget on July 3, as promised.
Lindner is planning relief for income tax payers in the tens of billions, and on Wednesday he triggered the next internal coalition debate in the traffic light government. According to the Federal Finance Minister's plans, the basic allowance is to be increased and the income tax rates adjusted in several steps by 2026. Lindner wants to use this to combat the so-called bracket creep. The SPD and the Greens reject the plans.
