Cabinet only takes note of budget, details still completely unclear
The Federal Cabinet "takes note" of the budget plans of the Chancellor, Economics Minister and Finance Minister; numerous details still need to be clarified before a decision can be made. The only thing that is clear is what savings the individual ministries will have to make.
The spokespersons for the federal ministries were not to be envied. "Due to the ongoing coordination process, I cannot comment on individual issues," was one of the answers they frequently gave at the intergovernmental conference on Wednesday when asked about the details of the 2024 budget.
This applies to details as well as the big picture. For example, it is still unclear what the increase in ticket tax will actually mean for the price of airline tickets. "I ask for your understanding that this is still being examined," was all that was said.
However, government spokesperson Steffen Hebestreit emphasized that the ticket tax is a levy - and that the coalition is not violating its intention not to increase taxes. "It's not a tax, it's a levy," said Hebestreit about the air traffic levy introduced in 2011, as the measure is officially called. The levy currently generates around one billion euros per year; in future, it is expected to raise up to an additional 580 million euros. The ticket tax is being increased because the legal hurdles for the planned introduction of a kerosene tax for domestic flights proved to be too high.
On Wednesday of last week, Federal Chancellor Olaf Scholz, Economics Minister Robert Habeck and Finance Minister Christian Lindner agreed on the main features of the 2024 budget in an overnight meeting after four weeks of talks. The consultations were necessary because the previous plans were no longer valid following the budget ruling by the Federal Constitutional Court. It was necessary to close a gap of around 17 billion euros. On Tuesday, just under a week after the agreement was reached, the federal government published its first written communication with concrete savings targets.
Özdemir stands by his criticism
Nevertheless, it is not only the structure of the air traffic levy that remains unresolved, but also numerous other details. The cabinet therefore did not approve the savings targets, but merely "took note of them", as Hebestreit said. There are still disputes over some points. For example, Agriculture Minister Cem Özdemir continues to oppose the planned abolition of agricultural diesel benefits and vehicle tax exemptions for agricultural vehicles.
Özdemir also took the floor during the debate at the cabinet meeting, said Hebestreit. Cabinet meetings are generally confidential, "but I can go so far as to say that he made his point clear". The exchange had been "very open", but also "very good": all ministers had made it clear how important it was to reach an agreement, and there had also been "a great sense of solidarity". In a way, however, Hebestreit immediately qualified this assessment by stating that the federal cabinet always showed solidarity.
The largest opposition group sharply criticized the approach of the traffic light coalition. "This coalition is clearly not really managing to set priorities, to draw really long lines and to see this crisis as an opportunity to reorganize the budget and set new priorities," said CDU/CSU parliamentary group leader Thorsten Frei on ntv's Frühstart. The question arises: "What applies now and to what extent does the Chancellor still have the reins in his hands?"
It is clear that the savings targets will not be changed in principle. So if Özdemir, for example, wants to prevent future burdens for farmers, he will have to organize the 480 million euros that are to be added to the budget through the abolition of the motor vehicle tax exemption and the 440 million euros from the end of the agricultural diesel exemption elsewhere.
Germany ticket probably not affected
What the development aid ministry spokesperson said also applies to almost all other ministries: the cuts are very painful and their implementation is currently being "discussed in house". Hebestreit said that each ministry now knew what amount it had to save, "everything else will be determined in the coming weeks".
Even when it came to the Deutschlandticket, the spokesperson for the Ministry of Transport was unable to give the all-clear. His department is "not aware of any effects on this", he said. But basically "what is always said here" applies - that details are still unclear. The background to this is that "the regionalization funds in the budget" are to be cut by 350 million euros - an item that is used by the federal states for local rail passenger transport.
The cabinet intends to finalize the draft budget at the beginning of January and then pass it on to parliament. In view of the many outstanding issues, the timetable is likely to be tight - and some ministries will also be working between the years, especially the Ministry of Finance. According to Hebestreit, the important review meeting of the Budget Committee could take place in mid-January and the actual decision in the Bundestag could be made at the end of January. The Bundesrat could then vote on it on February 2. "Until then, provisional budget management applies."
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The Federal Constitutional Court's budget ruling necessitated significant changes to the initial plans, requiring Olaf Scholz, Robert Habeck, and Christian Lindner to agree on revised budgetary policies in an overnight meeting. Despite the agreement, the cabinet only took note of the new savings targets due to ongoing disputes, such as Agriculture Minister Cem Özdemer's opposition to abolishing agricultural diesel benefits and vehicle tax exemptions for agricultural vehicles.
As a result of these disputes, the Fedeal Constitutional Court's influence extends beyond the budgetary policy's structure, as individual ministers like Cem Özdemer must find alternative ways to cover the additional costs that would result from their desired changes, such as preventing future burdens for farmers.
Christian Lindner, as Finance Minister, is involved in these budgetary negotiations, and his role is crucial in ensuring that the proposed changes are financially feasible within the allocated budget and legal framework.
Source: www.ntv.de
