Decisive meeting on the 2025 budget underway Will the traffic lights burst tonight?

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Short break in negotiations: Robert Habeck (54, Greens, left) and Olaf Scholz (66, SPD) on Thursday afternoon on the balcony of the Chancellery

These could be the last hours of the traffic light coalition – or the beginning of a new start: Olaf Scholz (66, SPD), Robert Habeck (54, Greens) and Christian Lindner (45, FDP) have come together for what could be a decisive meeting in the Chancellery.

Since shortly after 3 p.m., the Chancellor, Minister of Economic Affairs and Minister of Finance have once again been discussing the federal budget for 2025. If they reach an agreement, it could be the end of the months-long dispute. If they do not reach an agreement, a breakdown of the traffic light coalition becomes more likely.

Specifically, the question is how the federal government intends to spend around 452 billion euros next year and how much new debt Lindner can take on.

The finance minister is determined to comply with the debt brake. It is enshrined in the constitution and allows for around 24 billion euros in new debt for 2025. That is not enough for the SPD and the Greens. They fear cuts in the social budget, among other things, and are therefore demanding additional loans. Lindner, in turn, rejects this, citing the debt brake.

The finance minister has already threatened to break up the coalition if the SPD and the Greens do not accept this. Conversely, there are calls within the SPD not to support social cuts.

There are signs of convergence on the debt issue, but no final agreement yet, it is said.

The traffic light coalition leaders are already in the extension of their deliberations. Scholz's original plan was to approve the budget on July 3. But there was no agreement.

Now Scholz is putting pressure on everyone to reach an agreement tonight – or this weekend at the latest.

The SPD and the Greens have each called special meetings of their parliamentary groups for Friday morning. Scholz is to explain the status of the budget discussions for the SPD, and Habeck for the Greens. The hope is that an agreement will be reached by then. After all, the MPs will then start their summer recess.

The FDP, on the other hand, appears unimpressed by the Chancellor's time pressure. Carefulness comes before speed, according to the Finance Ministry.

One thing is certain: it will be a long night. The outcome of the traffic lights is open...





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