Coalition - Habeck warns against abandoning the budget compromise
Federal Economics Minister Robert Habeck (Greens) has warned against abandoning the compromise reached by the coalition leaders on the austerity package. Habeck told the German Press Agency: "If individual struts are now pulled out without new ones being inserted, the overall solution will collapse. This means that anyone who wants to make changes in one area must offer coordinated counter-financing that is viable for all sides. But we cannot afford not to give an answer, because the budget has to be done."
Planned cuts to the federal budget had triggered fierce protests. For example, the FDP parliamentary group in the Bundestag announced on Sunday that it would veto the plans of the "traffic light" leaders to cut tax breaks for farmers.
On Wednesday, Habeck, Federal Chancellor Olaf Scholz(SPD) and Finance Minister Christian Lindner (FDP) had agreed on how to plug billions of euros of gaps in the federal budget for 2024 and in the climate and transformation fund following a ruling by the Federal Constitutional Court.
Habeck: Package demands something from everyone
"The Federal Chancellor, the Finance Minister and I have negotiated intensively for three weeks in order to work out an austerity package that, as an overall solution, makes further investments possible, secures tens of thousands of jobs, preserves relief and maintains the social balance," said Habeck. He spoke of a package that implements the constitutional court ruling, has been put together on the basis of existing rules and demands something from all sides. "Cuts impose something on people and I would have liked to avoid it." He can understand everyone affected who is now disappointed.
Habeck's appeal to the traffic lights
Habeck continued: "However, as there are now also calls in the political arena not to make cuts in certain areas, I have to say: as politicians, we are obliged to facilitate an overall solution. What politicians cannot do is shirk their responsibility and only say where savings should not be made. I would also like to be able to promote e-mobility with the environmental bonus for longer, use more money for the solar industry or cap the costs of grid fees. But I know that other things are important to others and that every cut means hardship. That's why I'm defending the compromise, which is what it is."
Another controversial issue, for example, is the halt to the state purchase premium for electric cars at the end of Sunday. Three deputy leaders of the SPD parliamentary group had declared that the stop to the subsidy announced by the Ministry of Economic Affairs at short notice on Saturday was "extremely unfortunate". They had called on Habeck to organize a more reliable transition.
Habeck in favor of reforming the debt brake
The constitutional court ruling as a result of the Union's lawsuit means that the coalition must now save billions of euros, said Habeck. "At the same time, we should discuss how we can improve our investment rules in the future. It has long been known that I consider the rules of the debt brake as they stand to be outdated. Germany must invest massively in order to keep up with the global competition for future technologies and it must make the transition socially just."
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- The SPD parliamentary group announced on Sunday that they would veto the plans of the "traffic light" leaders to cut tax breaks for farmers, which are part of the planned cuts to the federal budget.
- The planned cuts had triggered fierce protests, with the FDP parliamentary group in the Bundestag being one of the groups opposing the plans.
- Federal Economics Minister Robert Habeck (Greens) warned against abandoning the compromise reached by the coalition leaders on the austerity package, stating that if individual struts are pulled out without new ones being inserted, the overall solution will collapse.
- The coalition leaders, including Federal Chancellor Olaf Scholz (SPD) and Finance Minister Christian Lindner (FDP), agreed on how to plug billions of euros of gaps in the federal budget for 2024 and in the climate and transformation fund following a ruling by the Federal Constitutional Court.
- Habeck emphasized that the austerity package is an overall solution that makes further investments possible, secures tens of thousands of jobs, and maintains the social balance, despite the cuts.
- The FDP parliamentary group's opposition to the planned cuts represents a challenge to the coalitions compromise, as they are opposed to reducing tax breaks for farmers.
- The Federal Constitutional Court's ruling means that the coalition must now save billions of euros, and Habeck has proposed discussing how to improve investment rules in the future to address this challenge.
- Another controversial issue is the halt to the state purchase premium for electric cars, which was announced by the Ministry of Economic Affairs at short notice on Saturday, with several SPD leaders calling for a more reliable transition.
- Robert Habeck has defended the compromise, stating that as politicians, they are obliged to facilitate an overall solution and cannot shirk their responsibility by only pointing out where savings should not be made.
Source: www.stern.de
