Coalition agrees budget after month of tense talks
Berlin bets on austerity instead of suspending debt brake
Deal is win for FDP, could help hold coalition together

BERLIN, Dec 13 Reuters Germany39;s government clinched a lastminute deal on its 2024 budget on Wednesday that will see Berlin return to its selfimposed limits on new debt despite warnings this could hamper growth in Europe39;s top economy and its green transition.

Chancellor Olaf Scholz39;s threeparty coalition was faced with either suspending what is known as the debt brake or finding some 17 billion euros 18.3 billion in savings and tax hikes after a Nov. 15 constitutional court ruling threw its plans into disarray.

Weeks of tense talks that had raised doubts the coalition could survive ended at around 5 a.m. 0400 GMT on Wednesday with an agreement to go down the path of austerity a win for fiscally hawkish junior partner, the Free Democrats FDP.

Scholz of the centreleft Social Democrats SPD nevertheless said the brake to limit debt could be suspended again if Ukraine needed more funding to fight off Russia39;s invasion. He was speaking hours before flying to Brussels to an EU summit at which support for Kyiv will be top of the agenda.

The government will stick to its goals … but we must do so with less money which means cuts and savings, Scholz told a press conference flanked by Finance Minister Christian Lindner of the FDP and Economy Minister Robert Habeck of the Greens.

After the court…