Federal Government - Habeck cancels trip to climate conference due to budget crisis
Vice Chancellor Robert Habeck (Greens) has canceled a trip to the World Climate Conference in Dubai and the region planned for Monday evening due to the budget crisis.
Habeck's presence in Berlin was necessary in order to make further progress in the talks on the 2024 budget following the ruling by the Federal Constitutional Court, a spokeswoman for the Ministry of Economic Affairs announced. This was done in consultation with and at the request of Federal Chancellor Olaf Scholz (SPD). The trip will be postponed to the next possible date.
The traffic light coalition of SPD, Greens and FDP is under great pressure to make decisions in the budget crisis. The federal government 's schedule recently included the participation of Economics and Climate Protection Minister Habeck at the World Climate Conference in Dubai on Tuesday.
Coalition must come to an agreement
Negotiations on the budget are currently taking place primarily in a three-way round with Scholz, Habeck and Finance Minister Christian Lindner (FDP). The coalition must reach an agreement within the next few days if it wants to adopt the budget for 2024 this year. A political agreement in principle must be reached by the cabinet meeting on Wednesday so that there is still enough time for the parliamentary process.
The Federal Constitutional Court had declared the reallocation of 60 billion euros in the 2021 budget to the Climate and Transformation Fund null and void. The money had been approved as a coronavirus loan, but was subsequently to be used for climate protection and the modernization of the economy. At the same time, the judges ruled that the state was not allowed to set aside emergency loans for later years. However, the federal government has done this in special pots - which is now tearing additional holes in the budget. Lindner sees a "need for action" of 17 billion euros for 2024.
Possible savings, particularly in social spending, are now being disputed - and whether the debt brake should be suspended again next year due to an emergency situation and with reference to the burdens caused by the Russian war of aggression against Ukraine.
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- The budget crisis has put the Traffic light coalition, consisting of SPD, Greens, and FDP, under immense pressure to make decisive budgetary decisions.
- Despite the budget crisis, Finance Minister Christian Lindner (FDP) emphasizes the need for additional savings of approximately 17 billion euros in the 2024 budget.
- Following the Federal Constitutional Court's ruling, the reallocation of 60 billion euros from the 2021 budget for the Climate and Transformation Fund was declared invalid.
- Vice Chancellor Robert Habeck (Greens) is currently engaged in negotiations with Federal Chancellor Olaf Scholz (SPD) and Finance Minister Lindner to reach an agreement on the 2024 budget within a few days.
- Christian Lindner sees a potential solution in scrutinizing household expenses, particularly in the area of social spending, and suspending the debt brake again for an emergency situation.
- Habeck had originally planned to attend the World Climate Conference in Dubai as part of the federal government's schedule, but his trip was canceled due to the pressing needs of the domestic budget crisis.
- The Federal Constitutional Court's judgment highlighted that the state cannot set aside emergency loans for future use, which has further exacerbated the budget deficit.
- Germany's participation in the un climate conference and Habeck's trip to Dubai for the World Climate Conference will now be postponed to a later date to allow for the settlement of the budget crisis.
Source: www.stern.de
