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News about avoiding government crisis in Germany – Sydsvenskan

News about avoiding government crisis in Germany – Sydsvenskan

After long and decisive negotiations, Germany's three ruling parties have agreed on a framework for next year's budget, according to consistent reports in German and international media.

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Photo: Kay Netfield

Chancellor Olaf Scholz (SPD), Vice-Chancellor Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) have been in intensive negotiations over the past few days and are said to have reached an agreement early Friday morning.

Hence, it is clear that their compromise-filled coalition has succeeded in avoiding a government crisis.

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The biggest hurdle is the huge deficit that next year's federal budget must cover, with differing views on how to reduce it.

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The government faced this huge budget hole when the country’s Constitutional Court last fall blocked its plan to take emergency funds left over from the Covid pandemic, allowing it to fund climate policy measures instead.

The so-called traffic light coalition – the parties’ colours are red, yellow and green – took office at the end of 2021 and has lost much support during its tenure. During the budget negotiations, voices within the party warned that reaching an agreement was crucial for the future of cooperation.

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