Klingbeil can imagine tax increases

SPD party conference plans key motion - Klingbeil can imagine tax increases

At the start of their coalition agreement, the SPD has written a renunciation of tax increases and adherence to the debt brake into its coalition agreement. Following the ruling from Karlsruhe, the SPD leader wants to overturn both. Klingbeil announces difficult talks with coalition partner FDP.

Following the Karlsruhe budget ruling, SPD leader Lars Klingbeil is questioning agreements made in the coalition agreement. The decision by the SPD, Greens and FDP not to increase taxes is being put to the test, Klingbeil said in Berlin. In the coalition agreement, it was agreed that investments in the future of the country should be financed with money from the corona pot. "It was derived from this that we would return to the normal situation with the debt brake and that there would be no need for a tax increase," explained Klingbeil. Now the first of these has been broken by the ruling of the Federal Constitutional Court. "For us as the SPD, this of course also means that we are now talking about the other two things."

The traffic light coalition is struggling to decide how much money the federal government can spend in the coming year. This is because the Karlsruhe ruling has torn billions in gaps in the budget for 2024 as well as in a fund for modernizing the economy and for climate protection. While Finance Minister Christian Lindner and the FDP insist on savings, the SPD and Greens also want to ensure more revenue through tax increases and loans.

Klingbeil held out the prospect of difficult talks. These are currently taking place in a three-way round with Chancellor Olaf Scholz, Vice-Chancellor Robert Habeck and Lindner. First of all, the three want to clarify how the budget for the coming year can be set up. Klingbeil called for the debt brake to be suspended, as the federal government has also initiated for 2023. The Basic Law allows this in the event of natural disasters or extraordinary emergencies. "The federal government must make savings. But in the end, I am of the firm political conviction that We have to declare an emergency for 2024 because I don't want to get into a situation where we play off Ukraine aid against climate investment," Klingbeil emphasized. "I want us to remain active supporters of Ukraine, and I hope that this is a consensus among the democratic parties."

Hoping for the CDU minister presidents

The opposition CDU/CSU currently sees no solid justification for the decision on an emergency situation for 2024. Should the traffic light coalition nevertheless suspend the debt brake, the CDU/CSU could once again take the matter to the Federal Constitutional Court. Klingbeil expects the debate on a reform of the debt brake to gain further momentum following the budget decision. "I believe that there will still be a lot of movement on the part of the CDU/CSU when the state premiers, mayors and district councils realize how the Federal Constitutional Court ruling will ensure that there is less money," he said.

At its party conference this coming weekend in Berlin, the SPD intends to adopt a key motion that provides for a relaxation of the debt brake and tax increases for the super-rich. In this way, the Social Democrats want to enable more money to flow into infrastructure and the jobs of the future. "This is not a direct reaction to the Federal Constitutional Court, it is our social democratic stance, but it is exactly the right one right now," said Klingbeil.