Lindner fends off crisis fears: "State fully capable of acting"
Federal Minister of Finance Lindner does not see a crisis looming if the leaders of the traffic light coalition fail to agree on the details of the 2024 budget in the near future. Unlike in the USA, there is no threat of a government shutdown in Germany if there is no budget.
According to Finance Minister Christian Lindner, a decision on the 2024 budget after the turn of the year would not be a major problem. "The state is fully capable of acting: no authority will close. No salaries will not be paid. No one who expects support will not receive it," said the FDP politician in Brussels. He was responding to statements from the SPD parliamentary group leadership that the budget for 2024 could no longer be passed in the Bundestag before the end of the year due to the budget crisis. However, Lindner was optimistic that an agreement would soon be reached: "A political agreement on the 2024 budget is probably already possible in the next few days."
Unlike in the USA, there is no threat of a government shutdown in Germany if there is no budget. This is because the Basic Law expressly provides for provisional budget management. Without a new budget, Article 111 of the Basic Law allows the federal government to make the necessary expenditures to maintain the operation of federal authorities, to continue construction projects and procurements that have already been approved and to fulfill existing obligations. This also means that social benefits such as parental allowance or unemployment benefit can continue to be paid.
However, measures that are only in the planning stage may not generally be started. Only "in the event of an unforeseen and unavoidable need" may there be exceptions according to Article 112. The Federal Minister of Finance decides on these. Provisional budget management is not uncommon in Germany, especially after federal elections. There is usually not enough time before the end of the year for the new parliament to form a government and approve the draft budget.
"We have always explained to the Ministry of Finance that we make everything possible," emphasized Lindner. However, a political agreement was a prerequisite. The traffic light coalition is struggling with how to plug a 17 billion euro hole in the budget for 2024. The SPD and Greens had planned to get everything under control before Christmas. The FDP, on the other hand, had pleaded for more time from the outset. "I noticed that the coalition partners had very ambitious timetables," said Lindner in Brussels. "However, there is no crisis now if we only reach a budget law next year."
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The FDP, led by Christian Lindner, advocates for more time to address the 17 billion euro budget deficit in 2024, as opposed to the ambitious timetable proposed by the traffic light coalition partners. Germany's Basic Law permits provisional budget management, ensuring essential services, social benefits, and ongoing projects continue, even without an agreed-upon budget. The Debt brake, a key aspect of Germany's budgetary policy, remains in effect, limiting the potential growth of the national debt.
Source: www.ntv.de
