Lindner wants to partially reform the debt brake
Federal Finance Minister Lindner is an ardent defender of the debt brake. However, he believes the rules could be improved. He wants his ministry to tackle a partial reform next year. Lindner is skeptical about the decision to raise the kerosene tax.
Next year, Federal Finance Minister Christian Lindner is planning a partial reform of the debt brake in order to better adapt the level of possible debt to economic fluctuations. He told the Redaktionsnetzwerk Deutschland that there are plans to revise the calculation of the so-called economic component, which allows more leeway in the event of a downturn. However, the FDP politician emphasized that this had nothing to do with the current budget situation of the federal government.
"The intention is to adapt the calculation to the current state of economic research, which will change the range of fluctuation," explained Lindner. "However, this will not increase the potential debt over several years. This is because the greater leeway in the downturn will be recouped in the upturn," he said. He wants to tackle the reform in 2024.
Following the budget chaos at federal level, the debt brake enshrined in the Basic Law has been criticized because it only allows a certain amount of leeway for borrowing. A two-thirds majority is required in both the Bundestag and the Bundesrat for a major reform demanded by the SPD and the Greens. However, the FDP and large sections of the CDU/CSU are opposed to this. According to RND, an amendment to the Basic Law is not necessary to adjust the economic component. A majority of the traffic light coalition would be sufficient, as only the implementing laws of the debt brake would have to be amended.
Lindner questions recent resolutions
On Wednesday, after lengthy negotiations, the leaders of the traffic light coalition reached an agreement on how to plug the billion-euro holes in the federal budget for 2024 and in the climate and transformation fund following a ruling by the Federal Constitutional Court. Measures such as the increase in the CO2 price and the planned removal of tax breaks for agricultural diesel have met with protest. Lindner told RND on the subject of agricultural diesel: "To be clear, I am not a friend of the burden on agricultural businesses." That is why the government and coalition will have to talk to each other. "I am open to alternatives," he said.
At the same time, Lindner hinted at reservations about the decision of the traffic light leaders to levy a kerosene tax on domestic flights. The argument of the aviation industry, which fears disadvantages for German airlines compared to foreign airlines, "we are examining very carefully", said the Finance Minister and FDP leader. "There should be no discrimination against German companies."
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Next year, Federal Finance Minister Christian Lindner, from the FDP, intends to initiate a partial reform of the debt brake to better align the allowable debt level with economic fluctuations. This revision would involve adjusting the calculation of the economic component, allowing for more flexibility during economic downturns while ensuring that any gained leeway is recouped during upturns.
Despite being critical of recent budget resolutions, including the proposed kerosene tax on domestic flights, Lindner has expressed reservations regarding potential discrimination against German airlines in comparison to foreign carriers and is assessing this argument carefully.
Source: www.ntv.de
