The German finance minister, Christian Lindner, stated in a televised interview that the 2025 federal budget deficit is expected to be about 5 billion euros. He noted this figure during a discussion with viewers on the public broadcaster ZDF and suggested that the government still has time to devise a solid solution. The figure Lindner cited, roughly five billion euros, reflects his assessment of the budgetary challenge ahead. He indicated plans to hold talks with Chancellor Olaf Scholz and Vice Chancellor Robert Habeck around mid-month to align on a path forward.
The draft budget is set to be presented to the Bundestag for final approval by the end of November. On July 17, the Council of Ministers gave its green light to the 2025 draft, though agreement within the ruling coalition took longer than anticipated and was marked by public disagreements among members. Some lawmakers even warned they might withhold support for the government if compromises could not be reached. The total budget amounts to 481 billion euros, with a provision of 4 billion euros earmarked for military aid to Ukraine, a figure that represents a reduction from the 2024 allocation. German Defense Minister Boris Pistorius has repeatedly voiced concern that the proposed budget does not provide sufficient increases for the armed forces, underscoring ongoing tensions about defense spending priorities.
Lindner also questioned the feasibility of several projects and urged that they be examined from both legal and economic perspectives. An audit highlighted legal risks connected to the use of the remaining 4.9 billion euros made available by the state-backed KfW to cap gas prices, suggesting this spending should be scrutinized within the broader budget framework. The finance chief emphasized the need for careful assessment of these items to ensure legality and economic soundness as the budget process progresses.
Scholz and his coalition have faced a challenging political dynamic since the government took office. The current assessment has hovered at a notably cautious level as lawmakers navigate competing priorities and the constraints of fiscal discipline. In this context, Lindner’s remarks reflect a pragmatic approach aimed at balancing immediate budgetary pressures with long-term fiscal stability. The discussion continues to unfold against a backdrop of broader debate about Germany’s role in European economic policy, defense commitments, and the use of state guarantees and public funds to address evolving geopolitical and domestic needs. The conversations with Scholz and Habeck are expected to refine the government’s stance on spending, prioritize essential programs, and seek consensus on how to manage the 2025 budget path while maintaining fiscal credibility for markets and citizens alike.