Habeck warns against abandoning the budget compromise

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 dpa: "If individual struts are now pulled out without putting in new ones, 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 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 shape the transition in a socially just way."

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1. The Federal Constitutional Court's ruling has put pressure on the Federal Government, requiring them to save billions of euros, as highlighted by Federal Economics Minister Robert Habeck.
2. Despite opposition from various parties, including the FDP in the Bundestag, Habeck emphasizes the need to maintain the budget compromise reached with Chancellor Olaf Scholz and Finance Minister Christian Lindner.
3. The compromise on the savings package was meticulously negotiated by Habeck, Scholz, and Lindner to maintain social balance, create jobs, and secure investments.
4. The FDP parliamentary group has threatened to veto tax break cuts for farmers, one of the controversial elements in the planned budget cuts.
5. Habeck urges the coalition to stick with the compromise, emphasizing the need for every side to contribute to viably closing the budget gaps, especially in light of the Federal Constitutional Court's ruling.
6. Another contentious issue is the abrupt halt to the state purchase premium for electric cars, a move criticized by three SPD parliamentary group leaders as "extremely unfortunate."
7. Habeck advocates for reforming the debt brake rules, believing they are outdated, and that Germany must increase investments to remain competitive in future technologies while ensuring a socially just transition.
8. The SPD parliamentary group has ruled out reaching a budget resolution before the end of the year, complicating the coalition's efforts to follow through on the budget compromise.
9. In light of the ongoing controversy, substantial compromise and political will are required to navigate these complex issues, guiding Germany towards a sustainable financial future.

Source: www.stern.de