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The 2025 budget has become a source of intense conflict among the three parties in the German government, raising concerns that the fragile coalition may be on the brink of collapse.
Chancellor Olaf Scholz's Social Democrats (SPD), the Greens, and the liberal FDP, who took office in 2021, have until July 3 to find a resolution.
FDP Finance Minister Christian Lindner is pushing for approximately 30 billion euros in savings, a demand that has been met with resistance from the Greens and SPD.
This budget dispute, which is unprecedented in its duration, is exacerbated by Germany's economic challenges, including high inflation and a slowdown in manufacturing.
The coalition's ability to remain in power hinges on the outcome of these negotiations, with all three parties also grappling with dwindling public support following the recent EU elections.
Key points of contention include unemployment benefits, with Lindner advocating for limitations on current payouts, citing their cost and lack of incentivizing effect.
