Frankfurt: The three parties in Germany’s ruling coalition have reached an agreement on the 2025 budget after weeks of contentious talks that brought Chancellor Olaf Scholz’s government to the brink of collapse.
According to sources close to the coalition, Scholz’s center-left Social Democrats and their partners, the Greens and the pro-business FDP, reached an agreement after the latest round of clashes that began on Thursday.
The government has faced several setbacks since taking office in 2021, but analysts fear the budget crisis could be the last straw as austerity supporters clash with those who want more spending.
There is relief among coalition MPs that the coalition is in crisis.
“I think it would be completely responsible given the situation in the world if the government dissolves now,” said Anton Hofreiter, a Green Party lawmaker and head of the German parliament’s European committee.
Germany has a “great responsibility” for Europe.
After the ruling parties won the European Parliament elections last month, pressure to prevent the collapse of the coalition increased and the far-right AfD party reached a record high. The budget line calls for 30 billion euros ($32 billion) of savings from the center, FDP-based Finance Minister Christian Lindner – a proposal put forward by the Greens and the SPD.
