Ministry of Economic Affairs calls budget freeze correct
The Federal Ministry of Economics, led by Green politician Robert Habeck, has welcomed the budget freeze imposed by the Ministry of Finance on the federal budget. "The step corresponds to the necessity of the situation," a ministry spokeswoman told the Reuters news agency. This would avoid further advance burdens for future financial years. "This is the right thing to do in the current situation," said the spokesperson. "The federal government is working intensively on solutions."
The Ministry of Finance had imposed a budget freeze for all ministries on Monday evening and justified this with the Constitutional Court ruling on the climate fund. According to the letter from the Ministry of Finance to all ministries, which was made available to Reuters, the ruling made it "necessary for the federal budget to review the overall budgetary situation".
The ministry, led by FDP leader Christian Lindner, added: "Existing liabilities will continue to be honored, but no new ones may be entered into."
On Wednesday, the Federal Constitutional Court cut 60 billion euros from the federal government because the transfer of unused coronavirus loans to the climate fund was unconstitutional. The government now lacks the money. In addition, the court has issued further clarifications on the debt brake in the Basic Law and the legality of loans, which could also have consequences for the current budget and the 2024 budget.
The budget freeze proposed by the Ministry of Finance aligns with the necessity of the financial constraints facing the federal government, as highlighted by the Federal Constitutional Court's ruling. This decision by the Ministry of Economic Affairs affirms that the budget freeze is the appropriate response in the current situation.
Source: www.ntv.de
