The traffic light coalition reaches an agreement on the 2025 draft budget - details remain open

The traffic light coalition reaches an agreement on the 2025 draft budget - details remain open

Peter Boehringer: The announced agreement on the household must still prove to be viable in autumn

At night, the traffic light coalition has achieved a fundamental agreement on the draft budget for 2025. It was officially announced that the debt brake will be observed. However, the exact details have not yet been published. These will only be announced in autumn during budget consultations. There are therefore doubts as to whether this household is really seriously financed. The agreement came under considerable pressure after the traffic light coalition had previously been at a loss and disputed.

It is still unclear where the government has made the necessary savings, since there is no information on this. Instead, there were only general statements about where it should not be saved. It is also questionable whether the planned savings can be specified in billions of billions. There are considerable risks that the expenses that are out of control this year, such as the exploding citizen benefit, will not be under control in 2025. The government may simply ignore these risks and beautifully the household in this way. Household burdens are often also postponed to the future, at a time when the current government is no longer in office. There is also the possibility that a further economic recovery will further reduce the planned tax revenue.

also remains to be seen whether the coalition will actually comply with the debt brake in this household by implementing the requirements of the constitutional court. This was clearly not achieved in 2024. It is more likely that the government will try to exploit the scope of the debt brake even further. It is currently being checked whether loan awarding to private companies in the future can also be led around the debt brake. The result of this exam is still pending. Overall, however, the debt brake is being softened.

It remains to be seen whether the announced agreement on the budget in autumn will actually prove to be viable. It is important to observe the household counseling closely in order to find out how serious and co -financed this household is really.

Source: Berlin