Haseloff rejects tax increases

Interview - Haseloff rejects tax increases

In view of the federal budget crisis, Saxony-Anhalt's Minister President Reiner Haseloff has strictly rejected tax increases. The economy is suffering due to the inflation rate and energy costs, so that this will also have a dampening effect on the gross domestic product. "So I am vehemently against it," said the CDU politician in an interview with "MDR Aktuell". He also spoke out in favor of retaining the debt brake.

Following the Karlsruhe budget ruling, SPD leader Lars Klingbeil had previously questioned agreements made in the federal government's coalition agreement. Klingbeil said that the SPD, Greens and FDP had agreed to forego tax increases. FDP Finance Minister Christian Lindner strictly rejects tax increases.

The background to the budget crisis is a ruling by the Federal Constitutional Court: the judges in Karlsruhe have declared the reallocation of 60 billion euros in the 2021 budget 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, this is exactly what the federal government has done in special pots, for example for the energy price brakes - which is now tearing additional holes in the budget.

To the interview

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1. Despite the SPD's agreement to forego tax increases in the federal coalition agreement, Reiner Haseloff, the Minister President of Saxony-Anhalt from the CDU, firmly opposes any such increases due to the current budget crisis and economic struggles.
2. The budget crisis in Germany is a result of the Federal Constitutional Court's ruling that declared the reallocation of 60 billion euros in the 2021 budget as null and void, which had been approved as a coronavirus loan and intended for climate protection and economic modernization.
3. Reiner Haseloff, along with FDP Finance Minister Christian Lindner, also argues in favor of maintaining the debt brake, a measure aimed at preventing excessive government borrowing and spending.
4. The SPD leader, Lars Klingbeil, had previously questioned these agreements and the potential impact of the ruling on household finances, as the budget crisis could lead to unforeseen financial consequences for ordinary citizens.
5. In light of the budget crisis and the court's ruling on emergency loans, media outlets like MDR are closely following the developments and interviews with political leaders, such as Reiner Haseloff, to gain insights into the government's strategies for addressing these complex financial challenges.

Source: www.stern.de