Budget crisis: Union increases pressure on traffic light coalition

Finances - Budget crisis: Union increases pressure on traffic light coalition

The CDU/CSU is increasing the pressure on the coalition government in the budget crisis. CDU General Secretary Carsten Linnemann called on Chancellor Olaf Scholz (SPD) to call a vote of confidence. "I think it would be better for the Chancellor to put the question of confidence to the German Bundestag," said Linnemann on the ZDF program "Maybrit Illner".

The Parliamentary Secretary of the CDU/CSU parliamentary group, Thorsten Frei, called on the President of the Bundestag, Bärbel Bas, to intervene in the current situation in a letter. On Thursday, it became known that the SPD parliamentary group leadership no longer considers a Bundestag resolution on the 2024 budget possible this year.

Linnemann said on ZDF television that if Scholz won the vote of confidence, the coalition government would have to make a plan for the next two years. "It can't go on like this." If, on the other hand, he loses the vote of confidence, the citizens will have to decide on a new start. "We need honesty now. This country cannot afford to go on like this for two years."

SPD federal party conference begins today

SPD General Secretary Kevin Kühnert said in the broadcast that he was certain that Scholz enjoyed the trust of all parts of the coalition government. New elections would bring further uncertainty to the country.

Chancellor Scholz, Vice-Chancellor Robert Habeck (Greens) and Finance Minister Christian Lindner(FDP) have been wrestling for days over how to plug a 17 billion euro hole in the budget for 2024. It was caused by the budget ruling of the Federal Constitutional Court, among other things.

The SPD parliamentary group leadership no longer believes that a Bundestag resolution on the 2024 budget is possible this year. The Parliamentary Secretary of the largest coalition parliamentary group, Katja Mast, expressed this view in a text message to her parliamentary group on Thursday, which was coordinated with parliamentary group leader Rolf Mützenich. This Friday, the Social Democrats will meet in Berlin for their national party conference.

Letter to Bas: "Call the coalition parliamentary groups to order"

In a letter sent on Thursday, Frei demanded that Bundestag President Bärbel Bas (SPD) call the coalition parties to order. The coalition's actions to date have been characterized by a lack of planning and stubbornness, according to the letter, which is available to the Deutsche Presse-Agentur. "Even the budget law as the supreme right of parliament is no longer spared from the chaos of the traffic light."

The way the government and the "traffic light" parliamentary groups deal with the Bundestag is unacceptable. The deliberations on the budget in the committees on Thursday were a new low. Apparently, the members of the coalition parliamentary groups were also not fully aware of what they were actually voting on. "Madam President, it is imperative that you personally intervene in the proceedings and call the federal government and the coalition parliamentary groups to order," Frei demanded. The "Süddeutsche Zeitung" had previously reported.

Economist Fratzscher warns against escalation of the situation

According to economist Marcel Fratzscher, the budget crisis must be ended as quickly as possible and a federal budget for 2024 adopted. "Otherwise the situation will escalate and could drive the German economy into recession again," the President of the German Institute for Economic Research told the German Press Agency.

"The biggest problem today, both politically and economically, is not spending cuts or subsidies, but such a massive loss of confidence in politicians' ability to act that companies are canceling their investments or relocating them abroad," said Fratzscher. "Stability and keeping promises must now be the top priority for the German government."

Fratzscher spoke out in favor of a renewed suspension of the debt brake, as many in the SPD and the Greens also want - although the FDP has so far been very skeptical.

The Taxpayers' Association called for extensive savings in the budget. "Whether the 2024 federal budget is passed this year or at the beginning of next year is of secondary importance," President Reiner Holznagel told Redaktionsnetzwerk Deutschland (RND/Friday). "The decisive factor is that the traffic light sets the course for structural savings." Consolidation is not over with the 2024 budget.