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Bundestag discusses supplementary budget 2023 and suspension of the debt brake

On Friday, the Bundestag will discuss the supplementary budget for the current year submitted by the traffic light government for the first time (09:00). The reason for the change to the current budget is the budget ruling of the Federal Constitutional Court. It had declared certain special...

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Production of 200 euro bills.aussiedlerbote.de
Production of 200 euro bills.aussiedlerbote.de

Bundestag discusses supplementary budget 2023 and suspension of the debt brake

The coalition wants to justify this with the continuing consequences of the Russian war of aggression on Ukraine on the energy markets and the high costs of reconstruction after the flood disaster in summer 2021. The 2023 budget no longer includes the start-up funding for the equity pension, which is intended to stabilize pension contributions from the mid-2030s. This will save ten billion euros this year. In total, expenditure of 461.2 billion euros is still planned for 2023.

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  1. The Federal Constitutional Court was recently asked to advise on the coalition's proposal to suspend the debt brake due to the situation in Ukraine and other factors.
  2. The Bundestag is awaiting the court's decision, as any suspension of the debt brake requires a two-thirds majority in both houses of parliament.
  3. If the court advises in favor of the suspension, the Bundestag will have to pass a new law to enable the suspension for 2023.
  4. The coalition argues that the suspension is necessary to support Ukraine and cope with the costs of the 2021 flood disaster, but critics argue that it could lead to unnecessary debt and future financial instability.
  5. Regardless of the court's decision, the 2023 supplementary budget will still need to be approved by the Bundestag and Bundesrat to be implemented.

Source: www.stern.de

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