In Germany, a pivotal budget meeting was canceled amid a deepening political crisis, raising concerns about potential delays in finalizing the country’s 2025 budget. This week’s session of the parliamentary budget committee was called off, further complicating efforts to secure approval amidst escalating political turmoil.
Parliamentary factions are still negotiating the timeline for early elections to address the ongoing uncertainty after Chancellor Olaf Scholz’s coalition fractured last week. Scholz’s administration lost its parliamentary majority on Wednesday, following the withdrawal of the Free Democratic Party (FDP) from the coalition. The FDP cited disagreements over spending increases, as their more left-leaning partners considered raising funds through public borrowing if necessary.
With the budget committee meeting now canceled, the prospect of forming a majority in the Bundestag to pass the 2025 budget appears slim. Even if Scholz’s Social Democrats and the Greens, who remain in the government, manage to present the budget, securing enough votes may prove challenging.
Helge Braun, chairman of the Bundestag’s budget committee and a member of the Christian Democratic Union (CDU), remarked in an interview with MDR on Monday, “I do not expect the 2025 budget to be approved before the summer of next year.”
