Scholz has two messages, but no plan yet
The Federal Constitutional Court declares a retrospective budget not only unconstitutional but also null and void - but the Chancellor is emphatically relaxed. The CDU leader is in a different mood. And the Economics Minister also seems worried.
Olaf Scholz brought two messages with him when he appeared in the Bundestag a few hours after the verdict was announced. In the morning, the Federal Constitutional Court in Karlsruhe had made a bang: credit authorizations amounting to 60 billion euros for the consequences of the corona pandemic were not allowed to be shifted to the so-called Climate and Transformation Fund. Karlsruhe declared the corresponding supplement to the 2021 budget null and void.
From the point of view of the CDU/CSU parliamentary group, which had filed a lawsuit with the Federal Constitutional Court, the ruling is a historic decision, a "double whammy", as CSU regional group leader Alexander Dobrindt put it. "This has never happened before in the history of this republic," says parliamentary group deputy leader Mathias Middelberg in the Bundestag, where Scholz has to face questioning at lunchtime - a regular event that cabinet members have to undergo on a regular basis. The fact that it is Scholz's turn on the day of the verdict is due to chance.
Far-reaching changes, but always with calm
The Chancellor delivers two messages in his opening statement. Firstly: it is possible that the ruling will result in "a very far-reaching change in the budgetary practices" of the federal states and the federal government. In other words, the CDU/CSU, which also governs in some states, is on board and may have shot itself in the foot. Not only the federal government, but also the federal states must ponder what it means for them that the debt brake will be more difficult to circumvent in future, as comparable regulations can also be found in most state constitutions.
Second message: take it easy. This is probably aimed primarily at his own parliamentary group, where there is a lot of excitement in the morning. Scholz, on the other hand, is emphatically relaxed. "I am convinced that the governing coalition will succeed in making the right proposals," he says in response to a question from Andreas Audretsch, deputy leader of the Green Party, who ultimately wants to know where the money for the urgently needed investments will come from. That could indeed be difficult. "Inflows of 60 billion euros from 2021 are no longer available," Scholz said in the Chancellery. The KTF is now to be revised "swiftly". But where will the money come from? The bottom line is probably around 20 billion euros. Tax increases? Unthinkable with the FDP. Savings? Hardly possible on this scale.
Everything should proceed smoothly
As far as the fundamental issues are concerned, there should be no quick fix, but rather a thorough examination. However, the fact that Scholz appeared before the cameras in the Federal Chancellery immediately before his appearance in the Bundestag together with Economics Minister Robert Habeck and Finance Minister Christian Lindner to comment on the Karlsruhe ruling stands in stark contrast to this message. Scholz essentially said the same thing there as he did later in parliament. "The German Bundestag will continue its deliberations on the 2024 budget as planned", the budget should "be put to the vote as planned". The adjustment session, in which the Bundestag's budget politicians put the finishing touches to the draft budget, is also to take place as planned. Move along, there's nothing to see here. Everything is running smoothly. This is to be understood quite literally: "Now we're going to the Bundestag," says Scholz in the Chancellery, laughing a little.
There are only immediate consequences for the Climate and Transformation Fund, so the corresponding economic plan has to be redrafted - a task for the Federal Minister of Finance. Lindner had announced in the Chancellery that he had "put a freeze on the economic plan for the Climate and Transformation Fund". The only exception to this would be for measures to promote energy efficiency and renewable energies in the building sector.
Like Scholz, Lindner also emphasized that the German government will of course respect the ruling and evaluate it "very carefully". "Because its consequences could also result in changes for the federal states," the FDP leader also emphasized. He also does not see any reason to cancel the budget consultations. "According to our current assessment, the deliberations on the 2024 draft budget are not affected by the ruling."
Union wants to interrupt budget consultations immediately
The opposition leader sees things completely differently, Friedrich Merz sees no reason for calm. The ruling removes the basis for the federal government's entire budget planning. "This is the end of all shadow budgets, at least those that are debt-financed." The CDU leader calls on the federal government to immediately suspend the budget consultations so that the next budget is constitutional. And Merz also has a message: the CDU/CSU will not agree to a relaxation of the debt brake under any circumstances. But that is just a footnote today - it would not be possible with the FDP anyway.
In addition, the CDU/CSU parliamentary group will examine whether the ruling of the Federal Constitutional Court can also be applied to the Economic Stability Fund, Merz threatens. The WSF was also set up in 2020 during the coronavirus crisis. The fund is also debt-financed and is primarily used to pay for the energy price brakes.
That would be more bad news for Habeck. The Green Minister for Economic Affairs is the only one of the traffic light trio to appear worried during his appearance in the Chancellery. He lists what the Climate and Transformation Fund will be used for and what "normal citizens" will get out of it. He hopes that work on the new economic plan "will begin and be completed promptly". He does not seem certain that this will succeed.
Olaf Scholz, the Chancellor, maintained a calm demeanor despite the Federal Constitutional Court's ruling that a retrospective budget change related to climate policy was unconstitutional and void. Meanwhile, Friedrich Merz, the CDU leader, expressed concern and urged the federal government to suspend budget consultations immediately, arguing that the ruling invalidates their budget planning. Robert Habeck, the Green Minister for Economic Affairs, seemed apprehensive about the implications of the ruling for the Climate and Transformation Fund, particularly in relation to the Economic Stability Fund.
Source: www.ntv.de
