"Can't understand the Union's howls of triumph"
SPD leader Lars Klingbeil sees the Federal Constitutional Court's ruling on compliance with the debt brake as a "challenge for politics as a whole". The traffic light coalition will have to find a common path and "talk about many fundamental issues". Klingbeil accuses the CDU/CSU of a destructive attitude.
SPD Chairman Lars Klingbeil has sharply criticized the CDU/CSU's reaction to the Federal Constitutional Court's ruling on the debt brake. "I cannot understand the Union's howls of triumph," Klingbeil told the news site ntv.de. "The budgets of CDU-led states such as NRW or Schleswig-Holstein could also face problems as a result." Klingbeil saw the verdict from Karlsruhe as a "challenge for politics as a whole, for the federal government, but also for the states".
In the opinion of the Federal Constitutional Court, it was not legal for the federal government to reallocate special loans taken out for coronavirus aid to the Climate Transformation Fund (KTF). The fund, which provides money for the transformation of the economy towards climate neutrality, for infrastructure projects and subsidies for replacing heating systems, is thus suddenly missing 60 billion euros that the federal government had borrowed on the market in 2021 under the pandemic-related exemption from the debt brake.
"Feisty boys from the CDU/CSU"
The SPD leader called on the CDU and CSU to deal constructively with the ruling. "The CDU/CSU can perhaps be pleased that they have won a legal point," said Klingbeil. However, the "economic policy dimension of this ruling and the political challenges" would affect all political levels in the country, including the CDU and CSU. "It's no use at all for the CDU/CSU guys to make fun of it." A new basis must now be found for "making the necessary investments in the economic strength of our country and at the same time ensuring that all citizens can afford the climate-neutral transition".
Klingbeil defended the rough adherence to the previous timetable for fixing the 2024 federal budget: "It is clear that we want to adopt the budget in December so that everything can go its way in an orderly manner from January 1, 2024." There had been calls from the CDU/CSU to open up the process once again. "A new economic plan for the Climate and Transformation Fund is being worked on in parallel. I don't want to sugarcoat the situation, but I still believe that we have the strength as a traffic light to get this done." There is not yet a precise timetable for when the future financing of the KTF projects should be in place.
"Fundamental discussions about many things"
Under great time pressure, the SPD, Greens and FDP must now find ways to finance planned projects elsewhere or cancel projects that have already been planned. As the FDP rejects any form of tax increase to finance investments, the governing coalition is once again facing a crucial test. However, since the ruling was announced on Wednesday morning, all parties involved have expressed their determination to find a common path. The deletions particularly affect projects from the house of Robert Habeck, the Green Federal Minister for Economic Affairs and Climate Protection.
"It is important to me that we do not stop modernizing this country now," said Klingbeil with regard to the loss of investment funds. The Federal Government must continue its efforts "so that Germany remains a strong industrial location and new jobs are created here through investment in climate protection". Klingbeil announced intensive talks within the three-party alliance: "We will put our heads together in the coalition with the government, with the parliamentary groups and with the parties. We will have to talk about many fundamental issues."
It is unclear, but possible that the SPD is still pushing for an increase in state revenue, at least behind the scenes. Green party leader Katharina Dröge suggested on ZDF on Thursday that subsidies should be cut, for example.
The traffic light coalition, led by SPD's Lars Klingbeil, is facing a challenge to find a common path following the Federal Constitutional Court's ruling on debt brake compliance. The ruling led to a 60 billion euro shortfall in the Climate Transformation Fund, which is used for infrastructure projects and subsidies. Klingbeil accused the CDU/CSU of having a destructive attitude towards the ruling.
Lars Klingbeil urged the CDU and CSU to approach the ruling constructively, as it affects all political levels in the country. He emphasized the need for a new basis to make necessary investments in the country's economic strength while ensuring affordability for all citizens during the climate-neutral transition.
Despite the financial setback, Klingbeil reiterated his commitment to adopting the 2024 federal budget in December and maintaining Germany's position as a strong industrial location with new job creation through climate protection investments. The coalition would need to engage in intensive talks to address the challenges and draft a new economic plan for the Climate and Transformation Fund.
Source: www.ntv.de
