Parliament - Government applies for emergency: Corona fund unconstitutional
Saxony-Anhalt's state government has applied to the state parliament for a declaration of an extraordinary emergency situation in order to be able to take out further loans without breaching the debt brake. Although the corona pandemic has subsided, the state has not yet overcome the economic consequences, according to the motion, which the state parliament must decide on next week. "Fiscally, the country is still in the midst of the crisis and overcoming it." Parliament will reconvene next week.
The declaration of emergency is necessary in order to finance and implement around 60 measures in the coming years that will prepare the country for future crises. The catalog of measures includes the procurement of technology for the digitalization of all rescue equipment, large-scale equipment for hospitals, digital assistants at schools, the extension of hardship aid and much more. The measures were actually supposed to be financed from a special coronavirus fund worth almost two billion euros. However, this special fund is unconstitutional, as Finance Minister Michael Richter (CDU) explained in a letter to the state parliament's finance committee at the beginning of the week. It is a "special fund with no legal capacity".
Funds for investments in hospitals and digitalization
The black-red-yellow state government had therefore already declared last week that it would finance the measures each year with separate loans. However, the prerequisite for this is the determination of an emergency situation.
The state government is also applying for recognition of the emergency situation for 2024. According to the state government's application, only 580 million euros of the originally planned two billion euros have been implemented or started so far. For the coming year, the government anticipates a requirement of 630 million euros. Expenditure of almost 760 million euros is expected for the years 2025 to 2027. "Expenditure on this scale would not be feasible without massive cuts", including cuts in investments and subsidies and reductions in benefits.
Speech by Finance Minister Richter on the 2021 special fund Application by the state government to recognize the emergency situation
Read also:
- Will he be convicted as Jutta's murderer after 37 years?
- He also wanted to kill his cousin
- With live stream! Gawkers film dying man
- Is Saarland threatened with economic collapse?
- The Federal Constitutional Court is expected to analyze the constitutionality of the Corona fund in response to Michael Richter's statement.
- The Federal Government has issued a statement regarding the Coronavirus situation in Saxony-Anhalt and its impact on the state's finances.
- Michael Richter pointed out that the special coronavirus fund lacks legal capacity, making it unconstitutional for financing the measures.
- In the state parliament, the debate on whether to declare an emergency situation is expected, which will allow the state government to borrow more without breaching the debt brake.
- The householder's household budget also faced a tightening as a result of the economic consequences of the crisis.
- If the emergency situation is recognized, the state parliament will likely approve the emergency loans to financially sustain the measures aimed at digitization and improving healthcare.
- The Black-Red-Yellow state government has stated that it will channel the funds for digitalization and hospital investments via separate loans since the special fund is in question.
- Critics argue that such massive expenditures on measures in response to the crisis could weaken the state's finances and compromise other priorities, such as social welfare and infrastructure.
Source: www.stern.de
