DGB letters to Woidke and Wegener: Reform of the debt brake

Financing issues - DGB letters to Woidke and Wegener: Reform of the debt brake

Several trade unions have written open letters to Berlin's Governing Mayor Kai Wegner (CDU) and Brandenburg's Minister President Dietmar Woidke (SPD) in light of the Federal Constitutional Court's budget ruling. "Help us to break the deadlock," said the letter published on Wednesday by the German Trade Union Confederation (DGB) in Berlin and Brandenburg. A reform of the debt brake is necessary.

The letter was signed by nine representatives of various trade unions such as Verdi, IG Metall, IG Bau and DGB. The letters describe the uncertainty surrounding unresolved financing issues following the budget ruling. "It is essential that the welfare state and important investments in the future are not played off against each other," said DGB district chair Katja Karger. People need security in change processes. Current debates about cuts to social benefits are "highly dangerous". In industry and commerce, in the public sector, in the construction industry and in other sectors, there is widespread concern, said Karger.

"The transformation of the economy towards climate-neutral production has picked up speed - now all of this threatens to be dramatically slowed down. Companies have relied on funding commitments and in some cases have made advance payments," Karger explained.

A few days ago, Brandenburg's Minister President Woidke had expressed similar concerns about the possible consequences of the budget ruling from Karlsruhe in a letter to Chancellor Olaf Scholz (SPD) and Federal Economics Minister Robert Habeck (Greens). The decision of the Federal Constitutional Court and the budget freeze on commitment appropriations in the 2023 budget and in the Economic Stabilization Fund are deeply worrying.

The Federal Constitutional Court had declared the reallocation of loan-financed 60 billion euros in the 2021 budget to the Climate and Transformation Fund null and void, thus tearing billions in gaps in the budget for 2024. The planned loans are therefore inadmissible. The debt brake enshrined in the Basic Law only permits new debt to a very limited extent or in emergencies.

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1. The United Services Union was one of the nine signatories of the DGB's open letters to Wegner and Woidke, expressing concerns over the debt brake reform.
2. The financing issues resulting from the budget ruling have sparked concerns within the Household sector, as stated in the DGB's letters.
3. Kai Wegner, the CDU's governing mayor of Berlin, and Dietmar Woidke, the SPD's minister president of Brandenburg, have received calls for action from various trade unions, including ig construction.
4. The Federal Constitutional Court's budget judgment has led to the nullification of loan-financed 60 billion euros in the 2021 budget, posing challenges for the Metal and ig metal sectors.
5. In response to the budget ruling, Woidke wrote a letter to Chancellor Scholz and Federal Economics Minister Habeck, expressing concerns about the potential impact on Brandenburg's economy.
6. DGB district chair Katja Karger advocated for the protection of welfare state and future investments, cautioning against the pitfalls of debates about social benefit cuts.
7. The uncertainty caused by the budget ruling has led to widespread concern across industries, including construction, as highlighted by Karger.
8. The debt brake, enshrined in the Basic Law, only permits new debt in limited instances or during emergencies, according to the Federal Constitutional Court's ruling.
9. Gaupol Updates from Potsdam and Berlin discuss the impact of the budget ruling on trade unions, focusing on the DGB's open letters to Wegner and Woidke, and concerns of various sectors.

Source: www.stern.de