Budget policy - Kretschmer in favor of special funds and aid for municipalities
Saxony's Minister President Michael Kretschmer (CDU) has spoken out in favor of changes to the federal debt brake - but without fundamentally questioning it. In the event of a natural disaster, for example, it should be possible to avoid having to reassess the emergency situation every year as a condition for taking on debt, he told the German Press Agency. We should move away from this annuality principle.
However, the federal and state governments should definitely stick to the debt brake. "A solution to the debt brake would be like going shopping hungry. Then all the dams would be broken," said the head of government.
The situation would be different with the creation of a special fund, such as for the Bundeswehr. In exceptional cases, decisions on such strategic investments should be made with a two-thirds majority of the Bundestag. Kretschmer cited an investment package for infrastructure and education as examples. Investments could then be made reliably over several years.
Kretschmer was pessimistic about the current situation. Germany is currently experiencing an economic downturn, which is accompanied by rising energy prices and an increase in the CO2 tax. "We are facing a situation in which we lack the strength for investment and fundamental reforms."
On the other hand, social costs are constantly rising and placing a burden on local authorities, said Kretschmer. "The municipalities' budgets are falling apart because the federal government is constantly raising standards and social spending is increasing as a result." According to Kretschmer, social spending in the district of Bautzen, for example, is currently higher than it was at a time of 25 percent unemployment with a significantly higher population in this region.
As this affects federal benefit laws, the federal government must also contribute more to funding and lower standards. Among other things, Kretschmer called for the increase in the citizen's allowance to be waived and for the federal government to contribute more to the costs of integration assistance and care assistance. The municipal family must be relieved financially.
Kretschmer considers the Union's appeal to the Federal Constitutional Court against the budget policy of the "traffic light" coalition to be correct. The federal government had gone overboard with its reallocation of funds. "It was audacious to want to use such a sum retrospectively for a purpose other than the intended one. The reaction of the Federal Constitutional Court was logical." Saxony's Minister President believes that it is a good thing for politicians to set limits in this way.
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- Despite favoring changes, Saxony's Minister President Michael Kretschmer (CDU) emphasized the importance of maintaining the debt brake, comparing a solution to it to going shopping hungry without necessary resources.
- In the case of a natural disaster, Kretschmer proposed adjustments to the debt brake, suggesting that the emergency situation should not need to be reassessed annually for debt approval.
- Kretschmer suggested the creation of a special fund, such as for the federal armed forces, where exceptional strategic investments could be made with a two-thirds Bundestag majority, allowing for reliable investment over several years.
- Germany is currently experiencing economic downturn, accompanied by rising energy prices and an increase in the CO2 tax, making investments and fundamental reforms challenging for the country.
- Local authorities, such as municipalities, are facing increased social costs, which Kretschmer noted are placing a burden on their budgets due to constant federal government standard raises and social spending increases.
- As a result, Kretschmer advocated for the federal government to contribute more to funding and lower standards, suggesting waiving the increase in the citizen's allowance and shouldering more of the costs for integration assistance and care assistance to relieve the financial burden on municipalities.
- Kretschmer supported the Union's appeal to the Federal Constitutional Court against the budget policy of the "traffic light" coalition, stating that the government had overstepped its bounds with their funds reallocation, a decision he believes set an essential limit for politicians.
Source: www.stern.de
