German Chancellor Olaf Scholz said that talks in his coalition over the 2025 government budget remain on track, despite reports of intense disagreements over proposed cuts.
Scholz, in a speech to parliament on Wednesday, said that there were collegial, fact-oriented and confidential talks on the budget for the coming year and a package intended to boost economic growth.
"We will present the draft budget in July," pledged Scholz, a Social Democrat (SPD).
Scholz, Vice-Chancellor Robert Habeck of the Greens and Finance Minister Christian Lindner of the pro-business Free Democrats (FDP) had originally planned a Cabinet decision on July 3.
But delays in reaching a political agreement on the outlines of the budget mean that date can no longer be met, since civil servants at the Finance Ministry will need time to translate any deal into a draft budget document.
The Cabinet is now aiming to present a budget at its meeting on July 17, dpa has learned.
Negotiators must find ways to plug a gap that runs into the tens of billions of euros, and solve intense disagreements about whether to allow deficit spending despite tight rules on government borrowing.
"More security, more cohesion, more growth - these are the priorities for our country," Scholz said. "There must be no cuts in social justice, health, care or pensions."
