Finances - Left accuses black-red of risky budget policy
Berlin's Left Party parliamentary group is extremely skeptical of the black-red budget plans. Left Party parliamentary group leader Anne Helm called the planned budget on Tuesday unambitious and at the same time highly risky - especially for the city's social infrastructure and in view of the challenges posed by climate change. Helm criticized that with such a budget, Berlin is heading for a billion-dollar cut-off point after 2025. "After that, there will be massive cuts."
Berlin could not afford a second Sarrazin era, she warned. Former SPD Finance Senator Thilo Sarrazin (2002 to 2009) was regarded as an advocate of a rigid austerity policy.
Left-wing budget expert Steffen Zillich accused the SPD of using billions in reserves to cover the budget - money that would then be gone. The reserves from the time of the previous red-green-red senate had been created on purpose, for example with a view to rising construction prices and higher energy costs.
He is also critical of the extent of the so-called flat-rate expenditure cuts, which amount to almost four billion euros - savings obligations that will soon be felt. The budget calls Berlin's social infrastructure into question, warned Zillich.
In the view of the Left Party parliamentary group, it would make more sense to increase taxes - and, for example, to bring more money into the coffers in the form of land purchase tax, overnight accommodation tax and second home tax. Zillich also argued in favor of enabling state-owned companies to obtain credit financing, repaying corona loans later and saving on planned investments in areas such as IT. The state parliament is expected to vote on the 2024/2025 double budget next Thursday.
Read also:
- The Left Party in Berlin's Senate criticizes the budgetary policy of the black-red coalition, arguing that the proposed budget is risky and could lead to significant cuts to social infrastructure after 2025.
- Thilo Sarrazin, former SPD Finance Senator in Berlin (2002-2009), was known for advocating a rigid austerity policy, and the Left Party warns against repeating this era.
- Steffen Zillich, a left-wing budget expert, accuses the SPD of using reserves to cover the budget, money that could have been used for other purposes.
- Zillich also criticizes the flat-rate expenditure cuts, which amount to nearly four billion euros, and warns that they could have a devastating impact on Berlin's social infrastructure.
- Instead of relying on budget cuts, the Left Party suggests increasing taxes on areas like land purchase, overnight accommodation, and second homes, and enabling state-owned companies to obtain credit financing to help ease financial pressure.
Source: www.stern.de
