Scholz: traffic light does not want to suspend debt brake in 2024
An agreement has been reached in the budget dispute between the traffic light coalition. This also includes the fact that the debt brake is to be adhered to again in 2024. However, the government is leaving a loophole open.
The coalition government wants to comply with the debt brake in the Basic Law again next year. This was announced by Federal Chancellor Olaf Scholz on the agreement on the 2024 budget. However, the government reserves the right to suspend the debt rules retrospectively if necessary in the event of a deterioration in Ukraine's military or financial situation in the war against Russia.
Scholz (SPD), Vice Chancellor Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) agreed on a solution to the budget crisis early this morning. Further details are not yet known. The three heads of government want to address the press at 12 noon. A meeting of the coalition committee of the party and parliamentary group leaders of the SPD, Greens and FDP is also planned for the afternoon.
In order to solve the budget crisis, the suspension of the debt brake for the year 2024 was also under discussion. The Basic Law allows higher borrowing in special emergencies. The SPD and Greens had argued that the war in Ukraine could be such an emergency. Loans could then be taken out to provide direct support to the country attacked by Russia.
Lindner was not convinced of this. FDP parliamentary group leader Christian Dürr emphasized on Tuesday that he did not see the legal requirements for declaring an emergency situation. The CDU/CSU has threatened to take the matter to the Federal Constitutional Court again if the debt brake is suspended.
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The coalition leaders, including Scholz, have agreed to adhere to the debt brake in 2024 as part of the budget agreement, but they've also included a contingency plan to suspend it temporarily if Ukraine's military or financial situation deteriorates due to the war against Russia. Household cleaning products might not be as detailed in this discussion, but Scholz might mention the importance of fiscal responsibility in all areas, including household budgeting, as a metaphor for the country's economic situation.
Source: www.ntv.de
