German coalition’s budget fight is back

In a significant development for Germany's political landscape, Finance Minister Christian Lindner has expressed skepticism regarding a draft budget agreement for 2025, reigniting tensions within Chancellor Olaf Scholz’s coalition government. This draft budget was initially perceived as a crucial compromise following the coalition's poor performance in the recent European elections, where Scholz’s SPD party recorded its worst results in over a century, and support for the Greens plummeted. Lindner's remarks suggest that further negotiations will be necessary, prompting criticism from coalition partners. SPD Secretary General Kevin Kühnert accused Lindner of self-promotion, while SPD Chairwoman Saskia Esken condemned his actions as exceeding acceptable limits within the coalition. Esken also rejected the idea that a fundamental reevaluation of the budget was needed, indicating a divide in perspectives among coalition leaders. Defending his stance, Lindner highlighted the financial challenges faced by the government, particularly following a landmark ruling by the constitutional court that restricted the use of special funds previously utilized to bypass constitutional debt limits. He emphasized his commitment to responsible fiscal management, stating, “I carry the political responsibility for our state finances,” and vowed not to repeat past mistakes. As tensions rise among the coalition's three parties, the prospect of reaching a new budget agreement remains uncertain, raising questions about the stability of Scholz’s government moving forward.