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Giffey calls for a rethink in budgetary policy

Economics Senator Franziska Giffey demands an end to the belief that the state budget can constantly grow. She wishes a change of mindset - towards greater efficiency.

How can we become more efficient and how can we also become more digital to save resources?" That...
How can we become more efficient and how can we also become more digital to save resources?" That is the central question of Economics Senator Franziska Giffey. (Archival Photo)

- Giffey calls for a rethink in budgetary policy

Economy Senator Franziska Giffey advocates for a shift in budget policy. "Budget discussions in recent years have been dominated by numbers that only went up. A successfully negotiated budget was one that always contained more funds and rarely asked about efficiency," said the SPD politician to the German Press Agency.

"It is naturally correct that price increases and wage increases must also be reflected in a growing budget in the future. But we must generally ask ourselves: What of what we have done so far is still necessary? How can we become more efficient and more digital to save resources? Which measures are no longer necessarily required?" Giffey explained.

Budget consolidation is necessary

"We must accept that budget consolidation is necessary if we want to make responsible politics," said the Economy Senator. "I see that we are facing a great challenge, but comparisons with the drastic cuts at the beginning of the 2000s do not do justice to reality."

The budget volume was around 20 billion euros in the 2010s. "In 2019, the budget was just under 30 billion euros and increased by a third to 40 billion euros due to the Corona crisis and its management."

Even with the upcoming savings, the next budget will still be significantly higher than before the pandemic, at around 37 billion euros, Giffey said. "I think it's important to keep that in mind. With this money, we can do a lot for our city."

"The blind adherence to the debt brake is dangerous"

"In recent years, we have been focused on crisis management, and in a crisis, you don't save, you invest. That was and remains correct. That's what the SPD has always stood for," Giffey emphasized, who was also the SPD state chairwoman until May.

Cutting several billion euros from the budget is a major challenge that will be noticeable. "For us as the SPD, it is important not to save on the social city," said Giffey.

A reform of the debt brake is, in her view, indispensable: The investment needs remain enormous due to climate change and global crises. "The normal budgets are not designed for these dimensions. That's why I consider the blind adherence to the debt brake fundamentally wrong and dangerous."

"Given the need for budget consolidation, it's crucial to reevaluate our taxation policies to ensure we're maximizing efficiency and minimizing unnecessary spending."

"In light of the reformed debt brake, it's essential to reconsider our taxation strategies to support investments in climate change mitigation and global crisis management without compromising fiscal responsibility."

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