Berlin: Budget dispute over! "There are many indications that the disputes will continue!" - Frei

Berlin: Budget dispute over! "There are many indications that the disputes will continue!" - Frei
During the budget negotiations, the traffic light coalition agreed to increase child benefit by five euros next year. The German Press Agency learned this from coalition circles. According to this, the child supplement for needy families in the citizen's allowance will also be increased by five euros next year. This amount will then rise from the current 20 euros to 25 euros and will expire with the introduction of basic child benefit, according to a paper available to the dpa. According to the agreement, the child benefit that all parents in Germany receive per child will then rise to 255 euros per month.
There are also changes to the child allowance. As the paper further states, this is to be increased by 228 euros to 9,540 euros this year. Next year it will be increased by another 60 euros to 9,600 euros. The allowance is deducted from taxable income and therefore reduces tax for families. "We have put together a large package to support children and families," said the deputy Green Party parliamentary group leader Andreas Audretsch to the dpa. "Children of parents with low incomes and children on basic social security will receive significantly more support. We want to set aside additional billions of euros for this."
In addition to the increases in payments to families, federal investments of two billion euros each in daycare quality are planned for 2025 and 2026. The funds for voluntary services are to remain at the level requested by the providers up to the end of 2023.
Ministry of Family Affairs satisfied
The Federal Ministry for Family Affairs is satisfied. Ministry sources say that the budget negotiations were successful for Family Minister Lisa Paus (Greens) in cooperation with Vice Chancellor Robert Habeck in a challenging environment. There is a strong children's package with financial support for children and families at risk of poverty, and at the same time, significant investments are being made in the quality of daycare centers. The children and youth plan and the promotion of democracy will continue at the same high level without any cutbacks, and more funds have been secured for voluntary services compared to the original financial planning.
Coalition leaders under budgetary stress
Chancellor Olaf Scholz (SPD), Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) had previously negotiated the budget until the early morning. A cabinet decision is now to be made on July 17. The Bundestag must then deal with the plans before the budget can be approved in November or December.
Billion dollar gap
Individual departments such as the Foreign Office or the Development Ministry initially did not want to accept Lindner's austerity measures in view of international obligations. The social budget was also controversial. In addition, there was still a gap of around 10 billion euros that needed to be closed. The SPD in particular, in view of the financial burdens caused by the war in Ukraine, pushed for the debt brake to be suspended again in order to have more scope for investments. This was out of the question for Lindner's FDP. The SPD rejected cuts in the social budget.
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Video created in 2024