Lindner remains adamant on debt and tax issues
Finance Minister Christian Lindner sees the debt brake and tax increases as red lines for participation in the traffic light coalition. He sees the matter quite simply: the state should simply make better use of the money it has.
In the debate on the consequences of the Karlsruhe budget ruling, Federal Finance Minister Christian Lindner has once again taken a firm stance against tax increases and called for measures to relieve the economy. The time for a debate on tax increases is not now, but in the 2025 federal election campaign, Lindner told the news portal The Pioneer with regard to demands for tax increases by SPD leader Lars Klingbeil. The latter had said that following the budget ruling, the coalition agreements on adhering to the debt brake and refraining from tax increases would be up for debate again.
"I can only give a friendly answer to that: This can be discussed in the next Bundestag election campaign in 2025." "The guidelines for our participation in government have always been: we respect the debt brake, i.e. the debt level in our country must fall." In addition, the tax burden on citizens must not increase. However, he sees no need for tax increases even after 2025, as the state should "simply make better use of the money it has", says Lindner. "There is no wobbling on this issue."
With regard to the 2024 budget, he explained that the ruling would have "no major impact on the federal budget itself". For example, the interest on the economic stabilization fund would have to be paid from the federal budget next year, which would amount to 2.5 billion euros. "Overall, we have a need for action of 17 billion euros in 2024," confirmed Lindner. "But this is partly for completely different reasons." Of the 17 billion euros, 3 billion euros alone would come from the reduction in electricity tax for the manufacturing industry and around 6 billion euros from the increased level of basic security.
Mobilize more private capital
The impact of the Karlsruhe ruling "should not be overestimated", said Lindner with regard to the affected projects. "We should not complain that less financial aid, subsidies and investments are now possible in this climate and transformation fund, but should take this as an opportunity to see where we can mobilize private capital in terms of the market economy and regulatory policy," said the FDP chairman. 60 billion euros would now be deleted from the fund, "but it is 60 billion by 2027".
Lindner reaffirmed his commitment to the debt brake. It also disciplines politicians to make do with the money that citizens make available to the state. "And this is precisely the task we must now fulfill, namely to use the high revenues we have in the state budget to make more effective policies," said Lindner. "You can also make very good policies without money, such as renewing our economy and returning the German economy to a growth path." If you start on the supply side of the economy, this does not cost the state any money. Lindner also reiterated that "the level of social security in Germany should not be increased any further".
The FDP leader also emphasized that there were good reasons to remain in the coalition. Without the FDP, only a grand coalition of SPD and CDU/CSU would be conceivable. "And the last grand coalition left us with the many problems with migration, planned climate protection and neglect of the Bundeswehr in the first place. I don't think that's the better constellation for the country."
Read also:
"Despite the demands for tax increases by SPD leader Lars Klingbeil, Finance Minister Christian Lindner remains firm on his stance, stating that the 'traffic light coalition' should respect the debt brake and avoid increasing the tax burden on citizens as part of their participation in government."
"In relation to the budgetary policy, Lindner believes that the state can make better use of its existing resources rather than resorting to tax increases, maintaining his commitment to the 'debt brake' principle."
Source: www.ntv.de
