Budget debate | Union politicians become faith healers in the budget debate

The statements by CSU MP Alexander Hofmann were symptomatic of the CDU's view of reality. "The mood is noticeably brightening, optimism is returning, people sense that something is changing," he said on Wednesday during the general debate on the federal budget for the current year, which will not be passed until after the summer recess. Philipp Amthor (CDU) had expressed similar sentiments the day before in an Instagram video, sitting on a beach promenade with a drink and wearing a polo shirt. The State Secretary in the new Federal Ministry for Digital Affairs and State Modernization explained to the astonished audience that the mood was excellent, something that could be seen "also abroad, because thanks to the CDU-led federal government, Germany has regained international prestige."

This is precisely what the Chancellor asserted in his speech to parliament on Wednesday morning. Friedrich Merz highlighted the initial successes of his government, which has been in office since May 6, in economic policy and, above all, in asylum policy. He nevertheless acknowledged that much remains to be done and that he sees continued concerns among citizens. His government will address these to create "courage and confidence."

Beforehand, he had to endure a tirade from Alice Weidel. As leader of the largest opposition faction, the AfD parliamentary group leader was entitled to the first speech. "You are a paper chancellor who plays the role of global power abroad, but allows himself to be humiliated at will at home by the election loser, the SPD," she shouted at Merz. The government is planning a "debt orgy the likes of which this republic has never seen before," and Merz is a "lying chancellor," because, according to Weidel, the CDU leader had promised a reduction in government spending before the federal election. Meanwhile, there is no "migration turnaround," said the far-right politician, but only measures in "homeopathic" doses.

Merz rejected Weidel's "half-truths, slander, and personal insults" and explained that the debt was necessary, in particular, to "strengthen the Bundeswehr" and NATO; otherwise, the latter would no longer exist in its 70th year. But loans were also needed to pull the economy out of the economic downturn. All of this would ensure "a life of security and freedom in Germany" and "initiate a change in our economic policy."

The Greens particularly criticized the CDU-SPD coalition's widespread inaction on climate protection. Green Party parliamentary group leader Katharina Dröge called their course in this regard a "declaration of bankruptcy." Instead, they allow subsidies for fossil gas from the Climate and Transformation Fund (KTF) and support new gas drilling off the island of Borkum.

"While you have hundreds of billions available for tanks, there is a mere four billion, the equivalent of Jens Spahn, for social housing."

Ines Schwerdtner, Chairwoman of the Left Party

All opposition parties criticized the temporary decision not to reduce the electricity tax for private households. Merz, for his part, pointed to the reduction of energy costs in other areas, including for private households. "Of the possible 200 euros per family per year (...) we are now making 150 euros per year possible," he emphasized. This is already "three-quarters of what we set out to achieve."

Union parliamentary group leader Jens Spahn (CDU) warned that the government must also "consolidate and save." Otherwise, "the enormous additional debt of €850 billion by the end of the decade" would be unsustainable given interest and repayment obligations. SPD parliamentary group leader Matthias Miersch also called for budgetary discipline. He said there is still "a huge problem in the budget, and that's why we must also have discussions about savings."

Merz announced an imminent and "comprehensive" reform of the citizen's income, which the CDU/CSU hopes will result in billions in savings. Even the governing parties only anticipate lower spending in the tens of millions due to the additional tightening of sanctions against citizen's income recipients.

Meanwhile, Merz assured Ukraine of continued comprehensive support, especially in terms of weapons. He emphasized that Germany has assumed "leading responsibility" in foreign and security policy within the EU and NATO. Regarding calls for more negotiations to end the war in Ukraine, the Chancellor declared: "Diplomatic means have been exhausted." Russian President Vladimir Putin, he said, is not willing to engage in talks. This course is reflected in the Defense Ministry's core budget, which will increase by €10.5 billion to €62.4 billion compared to 2024.

In light of this, Left Party parliamentary group leader Heidi Reichinnek and its federal chairwoman Ines Schwerdtner spoke of a "policy of social coldness." "You organize tax breaks for your friends in expensive suits and at the same time give billions to the arms lobby," said Schwerdtner. On the other hand, the government is "making the lives of people who are already in dire straits even more difficult." They are "kicking down to scrape together a few billion, which their parliamentary group leader just squanders in a few weeks because this CDU despises working and poor people," said the politician, referring to the billions in losses to the state treasury caused by former Health Minister Jens Spahn's mask procurement.

Schwerdtner pointed out that a wealth tax, which the government refused to introduce, could bring the federal government up to 120 billion euros annually. "That's 27 times the cuts to the citizen's income that you're planning," she calculated, noting: "While you have hundreds of billions available for tanks, there's a mere four billion, the equivalent of Jens Spahn's money, for social housing." True security begins "with a roof over one's head."

"When crises escalate in Africa, for example, this leads to further migration movements. Germany is called upon to combat the roots of this refugee movement. It is therefore in our own best interest to get involved there."

Johann Wadephul, Federal Foreign Minister

The four-day budget debate began on Tuesday with the introduction of the 2025 draft budget to the Bundestag by Finance Minister Lars Klingbeil (SPD). Significantly more investments are planned, which are to be financed primarily through significantly higher debt. The federal government plans to spend €503 billion this year. That's 6.1 percent more than in 2024. Of this, €81.8 billion in the core budget is to be financed through borrowing, more than twice as much as last year. In addition, there will be more than €60 billion from debt-financed special funds.

Meanwhile, cuts are being made not only to citizens' income and integration assistance, but also in areas that Foreign Minister Johann Wadephul (CDU) described in his speech as extremely important for international and German security. The budget for the Federal Foreign Office for this year amounts to 5.96 billion euros, compared to 6.71 billion euros in 2024. Wadephul's ministry is to be able to spend 2.56 billion euros on ensuring peace and stability, almost one billion euros less than last year. The cuts in humanitarian aid and crisis prevention are even more significant. The budget here is to be more than halved to 1.43 billion euros. The development aid budget will also be cut again, by almost one billion euros to 10.3 billion euros. All of these individual budgets had already shrunk drastically under the traffic light coalition in the past two years.

Minister Wadephul nevertheless called for greater German engagement in the world's crisis regions, particularly as a consequence of the dissolution of the US development agency USAID. Given the number, scope, depth, and severity of the crises, Germany is "called upon, from a humanitarian perspective, to engage more clearly in these regions than we have done so far," said the CDU politician. If the crises escalate in Africa, for example, this will lead to further migration movements. Germany is called upon "to combat the roots of this refugee movement," the minister said. Therefore, it is "in our own best interest to engage there."