Politicians from the SPD and Greens have expressed opposition to the Five-Point Plan proposed by their liberal coalition partner regarding the federal budget and retirement plans. SPD General Secretary Kevin Kühnert stated that attacks on retirement by the FDP and Union have become a tiresome ritual. He emphasized that abolishing current retirement rules would result in a reduction of benefits for millions of workers. Kühnert criticized the FDP’s proposal on ZDF, stating that the government is expected to approve the Ampel coalition’s retirement package in May and the 2025 budget plan in July. He urged everyone to focus on the issue at hand rather than releasing more policy papers.
Vice Chancellor Robert Habeck called on the SPD and FDP to resolve their dispute over retirement policy. He expressed confusion over the ongoing debate despite the existence of a solution developed by both parties. Habeck highlighted that the Greens are remaining neutral in the debate and are focused on finding solutions with Chancellor Olaf Scholz and Finance Minister Christian Lindner. The Ministry of Labor, led by Hubertus Heil, and Lindner’s Finance Ministry reached an agreement on the Retirement Package II in March, which includes maintaining a retirement level of 48% until 2039 and gradually increasing contributions to 22.3% by 2035.
Green Party Vice-Fraktionskonstantin von Notz criticized the FDP’s call for adhering to the debt brake in 2025. He argued that in times of external threats, such as from aggressive Russia and extremists, it is essential to reassess existing norms, including the debt brake. He emphasized the importance of investments in defense, police, and cybersecurity, stating that these are fundamental questions for society. The SPD’s First Parliamentary Secretary, Katja Mast, expressed support for retaining the retirement at 63 option for individuals with 45 years of contributions, emphasizing their contribution to society from a young age.
The coalition dispute over the 2025 federal budget continues, with various ministries resisting strict austerity measures proposed by Finance Minister Christian Lindner. Chancellor Scholz aims to reach an agreement by July, before the parliamentary summer break, and reiterated his stance against cuts for retirees. Development Minister Svenja Schulze warned against significant cuts in her department’s budget, highlighting the importance of international development cooperation for Germany’s security. There have been calls from the FDP to reduce spending in development aid to prioritize restoring Germany’s competitiveness.
Overall, the debate between the coalition partners revolves around ensuring a fair and sustainable budget while maintaining essential services and support for retirees and international development. The parties must navigate differing views on fiscal responsibility, social welfare, and international cooperation to reach a consensus on the 2025 budget. The pressure is on for a resolution before the summer break, with key ministers and party leaders emphasizing the need to prioritize the country’s stability and social cohesion in the budget negotiations.
