Budget compromise sought by Schmidt

July 1, 1982

West German Chancellor Helmut Schmidt put proposals to his Cabinet for compromise on the 1983 budget, on which the future of his left-liberal coalition depends.

Failure of his Social Democratic Party to agree with the Free Democratic Party on a budget could end their 13-year alliance and bring down the coalition. Political sources said wide differences remain over state borrowing, welfare cuts, and measures to combat unemployment.