Work to do, but we will get a budget deal, German Fin Min says

By Maria Martinez

BERLIN (Reuters) -German Finance Minister Christian Lindner said on Thursday that there is still a lot to do in 2025 budget negotiations but the coalition will get an agreement.

"There is still a lot of work to be done," Lindner said at an event at the finance ministry in Berlin. "But don't worry. We'll all get through this."

Germany's three-way coalition has been battling for months to resolve differences over next year's budget.

Chancellor Olaf Scholz of the Social Democrats (SPD), Economy Minister Robert Habeck of the Greens and Lindner of the Free Democrats (FDP) aim to agree at least an outline on Friday.

Lindner said investments are important but they are compatible with respecting the debt brake, which limits government borrowing to 0.35% of gross domestic product.

The finance minister is known for his fierce support of the debt brake.

A long-awaited package to stimulate an anaemic German economy is also expected with the budget.

Amid the demographic challenge that Germany faces, Lindner said, working years should be extended.

"There is no way around it, working life must be extended because, thank God, we are all living longer in good health," Lindner said, defending tax incentives for people to stay longer in the labour market.

However, he noted that this is still a controversial topic in the coalition and further discussions will be needed.

(Reporting by Maria Martinez and Christian KraemerEditing by Madeline Chambers and Miranda Murray)