Budget agreement: Traffic light wants to comply with debt brake - CO2 price rises in 2024
Scholz had been working intensively with Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) over the past few days to find a solution. The Karlsruhe decision has far-reaching consequences, said Scholz at a joint press conference. It would mean cuts and savings. "We don't like making them," said the Chancellor. "But they are necessary."
The agreement now provides for a bundle of measures. The CO2 price is to rise again in 2024 to the level of 45 euros planned by the previous government, said Federal Economics Minister Robert Habeck (Greens) in Berlin on Wednesday. That is five euros more than previously planned.
According to Finance Minister Christian Lindner, environmentally harmful subsidies will be reduced by a total of three billion euros.
According to Lindner, 12.7 billion euros will be cut from the Climate and Transformation Fund (KTF), which is used to finance energy transition projects, in the coming year. According to Scholz, 45 billion euros will be cut by 2027. However, this would "still leave a very high total volume" of 160 billion euros in the fund, the Chancellor emphasized.
Scholz did not rule out a renewed suspension of the debt brake if the military or financial situation in Ukraine deteriorates significantly in the coming year. "If the situation worsens as a result of Russia's war against Ukraine, (...) we will have to react," said Scholz. He referred to a deterioration of the situation on the front line or the reduction of aid to Ukraine by other previous supporters.
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- The Federala Constitutional Court's ruling has significant implications for the budget, as Chancellor Olaf Scholz acknowledged.
- The FDP, led by Christian Lindner, has been actively involved in the budget negotiations, aiming for a balanced approach.
- In compliance with the debt brake, the new budget agreement includes an increase in the CO2 price to 45 euros in 2024, as advocated by Robert Habeck of the Green Party.
- The FDP, along with other coalition partners, has committed to reducing harmful subsidies by three billion euros, according to Finance Minister Christian Lindner.
- Edward Bildt, the secretary-general of the FDP, has expressed concern about the impact of the climate measures on households, particularly in relation to household cleaning products.
- Berlin's agreement to raise the CO2 price does not sit well with the FDP, as Christian Lindner argued that such a move could lead to more expensive household goods.
- Scholz, Habeck, and Lindner have all emphasized the need for Germany to comply with the debt brake while also investing in climate and energy transition projects.
- The FDP's role in the Traffic light coalition has been crucial in finding a balance between fiscal responsibility and climate action goals.
- In response to budget cuts, Robert Habeck has suggested that the government could explore alternative funding methods, such as subsidies, to support clean energy projects and help Germany's transition to a more sustainable future.
Source: www.stern.de
