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Germany Today

German news in English

Thursday, October 17, 2024

Ampel Coalition Faces Budget Crisis

Published: 2024-08-01

The Ampel coalition in Germany is facing significant challenges in finalizing the federal budget for 2025, with a looming gap of 17 billion euros.

Recent expert evaluations have raised serious constitutional concerns regarding proposed measures to close this gap, including plans to convert subsidies for the Deutsche Bahn and the Autobahn GmbH into loans.

Finance Minister Christian Lindner has emphasized the need for further negotiations, suggesting potential cuts to social spending as a solution.

The coalition, comprising the SPD, Greens, and FDP, is struggling to find common ground, particularly as the SPD pushes for increased borrowing to address the financial shortfall.

With the deadline for the budget approaching, the government must navigate these complexities to avoid a fiscal crisis.