Scholz Confident in Resolving Germany's Budget Crisis

Chancellor assures no dismantling of welfare state amid coalition tensions

German Chancellor Olaf Scholz expressed confidence in resolving the country's budget crisis, which was triggered by a court ruling last month that annulled a decision to repurpose 60 billion euros ($65 billion) originally meant to cushion the fallout from the COVID-19 pandemic for measures to help combat climate change and modernize the country.
The immediate challenge is to plug a 17 billion-euro hole in next year's budget. Scholz, Vice Chancellor Robert Habeck and Finance Minister Christian Lindner have met repeatedly to seek to resolve the impasse.
The budget crisis has added to tensions in the 2-year-old coalition, which has become notorious for infighting and has seen its poll ratings slump.
Scholz assured there will be no dismantling of the country’s welfare state and that it is very clear that there will be no dismantling of the welfare state in Germany in such a situation.
Recent polls have shown support for the Social Democrats languishing at just 14-16%, far behind the 25.7% with which they narrowly won Germany’s 2021 election.