Budget crisis - SPD leader sees big test for coalition
SPD leader Lars Klingbeil believes that the budget crisis will be the biggest domestic political test yet for the coalition government. If you deduct the international situation, this is "the biggest test that the traffic light coalition has had to pass", Klingbeil said in an interview with the German Press Agency. "I wouldn't want to beat around the bush, it's going to be a bumpy ride over the next few weeks," he predicted. "But in the end I am optimistic that we will get the budget done. We have already been able to solve some crises and this is now the next big test that lies ahead of us."
Following Wednesday evening's summit meeting, the opposition CDU/CSU denied Chancellor Olaf Scholz's government the ability to act. There was a general lack of leadership, criticized CDU leader Friedrich Merz on RTL and ntv's "Frühstart". The population has a right to expect the government to do its job "and it is not doing so at the moment because it is constantly arguing and because it does not agree on the key issues of German politics", said the party and parliamentary group leader. The coalition has not even managed to set a timetable for the adoption of the budget for 2024.
No visible progress in the struggle for the next budget
In fact, the traffic light coalition is still looking for ways out of the budget crisis. It is still unclear and controversial what the federal government can spend money on in the coming year. The Federal Constitutional Court had declared the reallocation of corona loans to a fund for climate protection and the modernization of the economy null and void. At the same time, the judges ruled that the state may not set aside emergency loans for later years. This will tear a billion-euro gap in the planning for the coming year - and in the financing of long-term projects in the coming years.
According to Finance Minister Christian Lindner(FDP), there is currently a shortfall of 17 billion euros for the coming year. This shortfall is not a direct result of the deletion of the 60 billion in the Climate and Transformation Fund, but because other funds are also affected by the ruling. For this reason, an emergency situation is also to be declared for 2023 and the debt brake suspended.
Baerbock sticks to ambitious timetable
Foreign Minister Annalena Baerbock expects the coalition to finalize next year's budget before New Year's Eve. At a "time when crises are collapsing on top of each other", everyone must "make it clear: Democracies are strong, even in times of maximum crisis," said the Green politician on the sidelines of a conference in the North Macedonian capital Skopje. "That's why we will do everything we can and will manage to get a budget in place not only for this year 2023, but also for next year."
The timetable is ambitious, as the Bundestag normally only has one more sitting week before Christmas. The Budget Committee should also be able to complete its deliberations before then. Deliberation in the Bundesrat would only be possible with a shortened deadline.
SPD in favor of another exemption from the debt brake in 2024
A bigger problem than the timetable, however, are the political agreements on content. Various austerity measures are being debated. The FDP in the Bundestag, for example, called on Labor Minister Hubertus Heil (SPD) to review the citizens' allowance. FDP social politician Pascal Kober wants the increase in basic benefits planned for the beginning of 2024 to be put to the test.
In an interview with the German Press Agency, Klingbeil emphasized that he was prepared to talk pragmatically and non-ideologically about potential savings. For him, however, it was important to maintain investment in Germany's economic performance. He also warned against making cuts for the poorest of all people. "We must keep the welfare state strong because it also gives people security, especially in times of uncertainty," he said. "And that's why it must not be axed."
The SPD leader spoke out in favor of suspending the debt brake again for 2024. The emergency situation required for this could be explained by the ongoing war in Ukraine and the billions in aid to support the country attacked by Russia. The question is whether the suspension of the debt brake could be limited to expenditure in connection with the war in Ukraine - and thus create scope for other expenditure in the core budget.
For the CDU/CSU, a renewed suspension of the debt brake is currently out of the question. The parliamentary secretary of the parliamentary group, Thorsten Frei (CDU), told the "Stuttgarter Zeitung" and the "Stuttgarter Nachrichten" (Thursday) that there is "no sensible reason" for this so far. Lindner had previously expressed a similar view: He was "not yet convinced" that the conditions for an emergency resolution in 2024 were in place.
New uncertainty due to climate ruling?
It is also not yet clear how the latest ruling by the Berlin-Brandenburg Higher Administrative Court on climate protection could affect the budget. The court ordered the federal government to launch immediate programs for more climate protection in transport and buildings. Possible measures include a speed limit, the abolition of tax benefits for diesel or company cars and a new wave of building refurbishment - many of which are contentious issues in the traffic light. However, the government can appeal and thus postpone the effect. On Thursday, it initially announced that it would examine the court's reasoning in detail.
Lesen Sie auch:
- The Federal Government is currently facing a budget crisis, which according to SPD leader Lars Klingbeil, will be the biggest domestic political test for the traffic light coalition.
- After a summit meeting on Wednesday evening, the opposition CDU/CSU denied the ability for Chancellor Olaf Scholz's government to act, with CDU leader Friedrich Merz criticizing a lack of leadership.
- The traffic light coalition is still struggling to find ways out of the budget crisis, with the German Press Agency reporting that it's unclear and controversial what the federal government can spend money on in the coming year.
- The Federal Constitutional Court declared the reallocation of corona loans to a fund for climate protection and the modernization of the economy null and void, creating a billion-euro gap in the planning for the coming year.
- Finance Minister Christian Lindner (FDP) has acknowledged a shortfall of 17 billion euros for the coming year due to the ruling, with an emergency situation being declared for 2023 and the debt brake suspended.
- Annalena Baerbock, the foreign minister, remains optimistic that the coalition will finalize this year's budget before New Year's Eve, despite the ambitious timetable and the opposition's criticism.
- The FDP in the Bundestag has called for the review of citizens' allowance, with FDP social politician Pascal Kober wanting the increase in basic benefits planned for the beginning of 2024 to be put to the test.
- Klingbeil, the SPD leader, has emphasized the importance of maintaining investment in Germany's economic performance and warned against making cuts to the welfare state and the poorest people.
- The SPD leader also advocated for the suspension of the debt brake again for 2024 due to ongoing crises, but the CDU/CSU considers a renewed suspension out of the question.
- The latest ruling by the Berlin-Brandenburg Higher Administrative Court on climate protection may also impact the budget, with contentious issues such as a speed limit and building refurbishment being considered.
- The government has announced it will examine the court's reasoning in detail and may appeal to postpone the effect of the ruling, furthering the uncertainty surrounding the budget crisis.
Source: www.stern.de
