Report: Lindner is developing a secondary budget.
As the debate around the 2025 budget continues, a potential supplementary budget for 2024 may act as a release valve for Finance Minister Lindner. According to reports, an additional €11 billion in debt could be taken on due to the struggling economy without contravening the debt limit.
A recent article in the "Bild" newspaper hinted at the federal government's intentions to introduce a supplementary budget this year. According to sources, the Finance Ministry has shared this information with members of the traffic light coalition. This comes as surprising news considering the initial plans for the current year's budget.
The weaker economy also presents the opportunity for a higher planned debt than initially anticipated, up to €11 billion, while still complying with the debt brake. "It's possible," stated a coalition insider when contacted by Reuters. "But there's no decision on this within the government yet."
Amidst these plans is the funding for the promotion of green electricity, a costly endeavor for the federal government. Due to lower electricity prices on the stock exchange than expected, the federal government is expected to spend considerably more on legally guaranteed feed-in tariffs for renewable energy, like solar and wind power. Some experts suggest that an additional €9 billion could be needed for this purpose alone. "Bild" also mentioned that several ministries, like the Defense Ministry, have sought additional funds from Lindner.
The supplementary budget is expected to be presented at the earliest in the fall.
Christian Haase, the parliamentary spokesman for budget policy of the CDU/CSU parliamentary group, voiced his displeasure with the coalition's plans. "The supplementary budget is only a lifeline for the continuation of the coalition," Haase told "Bild." "We will find measures in the supplementary budget 2024 that should have been included in the budget 2025."
If a supplementary budget is eventually introduced, the debt would increase significantly, reaching €50 billion, as per Haase.
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Christian Lindner, the Finance Minister, is considering a secondary budget to address financial needs, despite the debt brake in Germany's budget policy. The supplementary budget could allow for an additional €11 billion in debt, as reported by Reuters.
During discussions about the 2025 budget, Finance Minister Christian Lindner may present a supplementary budget for 2024, which could potentially exceed the initial budget and still adhere to the debt brake limitation.
