Federal Minister of Economics - Habeck: "Clear agreement" on taking on debt for flood aid
Federal Economics Minister Robert Habeck has made it clear that he believes the suspension of the debt brake in the coming year to finance the flood aid in the Ahr valley is a foregone conclusion. "There is a clear agreement that we will provide the 2.7 billion euros for the Ahr valley through loans," the Green politician told the Handelsblatt newspaper.
Last Wednesday, Federal Chancellor Olaf Scholz (SPD), Finance Minister Christian Lindner and Habeck reached a compromise on the 2024 federal budget. However, this included that the debt brake will not be suspended next year for the time being, but that an exception for the consequences of the flood disaster in the Ahr valley will be examined with an open mind. In the event of a change in the situation in Ukraine, the traffic light system also reserves the right to suspend the brake at a later date and to grant additional loans.
With regard to the exception for the flood aid, Habeck now said that this would of course have to be properly justified and examined with this in mind. However, when asked whether this review could also turn out to be negative and whether new budget negotiations would then be necessary, he said: "That won't be necessary."
From Habeck's point of view, there is also a clear agreement in which case the traffic light coalition would declare a further emergency for the financing of Ukraine aid in the coming year. "If we have to extend the aid by billions, we will also have to decide on this emergency situation." Scholz, Habeck and Lindner had agreed to examine a possible Ukraine emergency in the course of the coming year.
Interview in the"Handelsblatt"
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- The Federal Government, led by Chancellor Olaf Scholz (SPD), is considering suspending the debt brake in Rhineland-Palatinate, specifically to provide aid to households affected by the floods in the Ahr valley.
- Olaf Scholz, Finance Minister Christian Lindner, and Economics Minister Robert Habeck (SPD) have all expressed their support for providing financial aid to the Ahr valley, despite the current debt brake regulations.
- According to Handelsblatt, Olaf Scholz, Habeck, and Lindner are also examining the possibility of declaring an emergency situation for funding Ukraine aid in the coming year.
- In an interview with Handelsblatt, Habeck emphasized that the examination of an exception for flood aid in the Ahr valley would not require additional budget negotiations.
- Christian Lindner, of the FDP, was part of the recent compromise on the 2024 federal budget, which delayed the suspension of the debt brake but left the option open for exceptions in case of natural disasters or other exceptional circumstances.
- The commitment of the Federal Government, particularly Olaf Scholz and Robert Habeck, to providing aid to the Ahr valley and discussing possible emergency situations in Ukraine has been widely reported in various German newspapers, including Handelsblatt.
Source: www.stern.de
