Flood situation triggers new debate on debt brake

Household - Flood situation triggers new debate on debt brake

An end to the flood situation in Germany is not yet in sight and the extent of the flood damage is not yet foreseeable - but a debate has begun in politics about the possible consequences. Politicians from the SPD and the Greens have brought up the possibility of suspending the debt brake once again. The FDP reacted negatively. In Berlin, the spokesperson for the federal government made it clear that the government was capable of acting if the worst came to the worst.

The Interior Minister of Lower Saxony, Daniela Behrens (SPD), who was particularly affected by the floods, told the Phoenix channel that there would be a lot of damage once the water had receded. "We will have to invest a lot, again in the repair of dyke protection systems and roads." Lower Saxony will be dependent on help from the federal government.

SPD budget politicians forge ahead

Dennis Rohde, budget policy spokesman for the SPD parliamentary group in the Bundestag, told Stern magazine: "The full extent of the flood damage is not yet foreseeable, but we have the option of suspending the debt brake in the Basic Law for precisely such cases." Whether this financial dimension will be reached will be closely examined.

Support came from the Greens. Andreas Audretsch, deputy leader of the Green Party, said: "One thing is certain: we will not leave the people in the flood areas to deal with the costs on their own. In order to provide the necessary funds, the suspension of the debt brake in 2024 is of course also an option."

The FDP, on the other hand, raised other voices. "The people in Lower Saxony, who are having to scoop the water out of their cellars these days, have other worries than the debt brake," said parliamentary group leader Christian Dürr. "No one can put a figure on the extent of the damage today anyway. It is absolutely clear that the federal government will not leave those affected alone." Parliamentary group deputy Christoph Meyer said that it is currently not apparent that the federal states and the federal government are financially overburdened by the floods. "A suspension of the debt brake is therefore not justified at present."

Federal government wants to wait for the acute phase - Scholz to Saxony-Anhalt

"At the moment, it's all about providing acute aid," said federal government spokesman Steffen Hebestreit. The Ministry of Defense referred to the deployment of helicopters, the Ministry of the Interior to the deployment of the Federal Agency for Technical Relief (THW). Hebestreit said that after the acute phase, it would be necessary to see how extensive the damage was. Local authorities, federal states and the federal government would then have to sit down together and decide how to deal with the situation. "If such a high level of damage were to occur, which we are not assuming at the moment, then the federal government could also take action," said Hebestreit. He did not mention the word debt brake.

The government spokesman announced that Federal Chancellor Olaf Scholz (SPD) would visit flood areas in Saxony-Anhalt "in the very near future". On New Year's Eve, Scholz had visited Verden in Lower Saxony to find out about the situation, the situation of those affected and the work of the relief workers.

Renewed suspension of the debt brake already controversial

The debt brake enshrined in the German constitution only provides for strictly limited net borrowing. However, it can be suspended in the event of natural disasters or other extraordinary emergencies if the state's financial situation is significantly impaired.

As a result of a budget ruling by the Federal Constitutional Court, which created billions in gaps in the federal budget, the Bundestag suspended the debt brake again for 2023 in mid-December - for the fourth time in a row. The coalition government does not want to suspend the debt brake for the 2024 financial year for the time being. However, an exception for the consequences of the flood disaster in the Ahr valley in 2021 is to be examined in an open-ended manner. This involves around 2.5 billion euros. In the event of a change in the situation in Ukraine, the traffic light also reserves the right to suspend the brake at a later date and to grant additional loans.

Debate on disaster protection

The current tense flood situation shows how important it is to take flood precautions, explained the Federal Ministry for the Environment. "The consequences of the ongoing climate crisis are presenting us with ever-increasing challenges for which we must prepare even better in the future." Ten years ago, following the devastating floods on the Danube and Elbe, the National Flood Protection Program was drawn up by the federal and state governments in order to reclaim land for natural flood retention. According to the ministry, the majority of the planned measures are still in the design, planning or approval phase.

A spokesperson for Federal Minister of the Interior Nancy Faeser (SPD) said that the ministry sees a "need" to further strengthen the operational capability of the THW in the budget years 2025 and beyond. However, he referred to the necessary consultations in the coalition. The Association of Cities had already called for significantly more money for civil protection. In response to a question about structural changes, government spokesperson Hebestreit said that civil protection is very well positioned - and is basically a matter for the federal states.

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1. The SPD parliamentary group in the Bundestag has budget politicians who advocate for suspending the debt brake in severe flood situations.
2. The Interior Minister of Lower Saxony, Daniela Behrens, explicitly mentioned the need for financial aid to repair flood-damaged infrastructure in her interview with Phoenix.
3. The debate on suspending the debt brake due to the flood situation has gained traction, with Christian Lindner and the FDP expressing their opposition.
4. The federal government in Berlin is prepared to take action if the situation worsens, but they are currently focused on providing immediate aid.
5. Olaf Scholz, the SPD federal chancellor, has plans to visit flood-affected areas in Saxony-Anhalt to assess the situation and lend support.
6. The SPD budget policy spokesman, Dennis Rohde, believes that the full extent of the flood damage justifies suspending the debt brake as per the Basic Law.
7. The Greens stand in solidarity with those affected by the floods and support the possibility of suspending the debt brake in 2024 to cover the necessary expenses.
8. Christian Dürr, the FDP parliamentary group leader, asserts that the federal government will not abandon those affected by the floods, but does not see the need for a debt brake suspension at this time.
9. The current debate on the debt brake suspension is controversial, as it involves reviewing the strict borrowing limits enshrined in the German constitution for extraordinary emergencies.
10. The suspension of the debt brake has been utilized thirteen times since 1995, including two instances in 2021 to address flood damage in the Ahr valley and potential consequences arising from the Ukraine situation.
11. Steffen Hebestreit, the government spokesperson, mentioned that the situation would be closely monitored, and the federal government would assess its options after the acute phase of the flood situation has passed.
12. The current flood scenario serves as a reminder of the importance of flood precautions, as the consequences of climate change present increasingly severe challenges that call for better preparedness.
13. The German government is currently examining ways to further strengthen the operational capability of the Federal Agency for Technical Relief (THW) to better cope with natural disasters and emergencies.

Source: www.stern.de