Lindner: Relief for citizens higher than rising CO2 price
After weeks of wrangling, the coalition government agreed on a solution for the 2024 budget on Wednesday. As a result of the budget ruling by the Federal Constitutional Court, a financial gap of 17 billion euros had to be closed. This will be achieved through a bundle of measures ranging from savings to tax increases and subsidy cuts.
Lindner also justified the cuts in the area of citizens' benefits with a view to refugees from Ukraine. "This is necessary," he said. "We have to make our welfare state fit for purpose." The aim is to integrate refugees into the labor market. "There must be sanctions for those who refuse job offers." It is therefore possible to "save 1.5 billion euros in the area of citizens' income".
With regard to the removal of climate-damaging subsidies, Lindner referred to the previous tax exemption on fuels for inland shipping. Such subsidies are now coming to an end, said Lindner. "But we are using them to finance tax relief, namely the reduction in electricity tax for the manufacturing industry to the same extent" of three billion euros.
According to information from the Federal Ministry of Finance, the concession on vehicle tax for forestry and agriculture will also be abolished in the area of climate-damaging subsidies. In addition, the tax concession for agricultural diesel and the reduction mechanism for the air traffic tax will be abolished.
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- The co2 price is set to increase, but Christian Lindner believes this increase should not outweigh the relief for citizens, as stated in the 2024 budget agreement.
- ZDF reported that the Federal Constitutional Court's budget ruling led to a financial gap that needed to be closed, resulting in a combination of measures.
- Lindner, the FDP leader, defended the cuts in citizens' benefits by citing the integration of Ukrainian refugees into the labor market, emphasizing the necessity of sanctions for those refusing job offers.
- The elimination of climate-damaging subsidies, such as the previous tax exemption on inland shipping fuels, will be counterbalanced by financing tax relief for the manufacturing industry, as per Lindner's announcement.
- From December onwards, concessions on vehicle tax for forestry and agriculture, as well as the reduction mechanism for the air traffic tax, will be revoked as part of the efforts to phase out climate-harmful subsidies.
- The coalition government, faced with a budget deficit due to the constitutional court's ruling, implemented numerous measures, including cutting subsidies and proposing tax increases, to offset the shortfall.
Source: www.stern.de
