Why did Scholz refuse to cut benefits amid the crisis? German Chancellor Olaf Scholz firmly rejected any reductions in social benefits on Saturday as his crisis-ridden coalition attempts to reconcile the budget for 2024.
Scholz refused to cut benefits in the midst of the crisis
Germany is facing a budget crisis after last month's court decision on debt repayment rules unexpectedly disrupted the government's spending plans.
The constitutional court's ruling poses a "very difficult task" for the government, said Scholz at the congress of his Social Democratic Party.
In negotiations with coalition partners, the Greens and the liberal FDP party, Scholz emphasized that he will not agree to cut social payments.
"In such a situation, there will be no reductions in social welfare in Germany", he said.
The chancellor did not provide details of the negotiations but stated that he wants to "convey confidence that we will succeed" in reaching an agreement.
Germany's highest court ruled that the government violated the constitutional debt rule when it transferred €60 billion (65 billion dollars), intended to support the economy during the pandemics, to a climate fund.
This decision blew a huge hole in spending plans, forcing the government to adopt an emergency budget for 2023 and sending it in search of a new plan for 2024.
According to current forecasts, the coalition needs to fill a €17 billion deficit, and opposition conservatives, as well as Scholz's junior coalition partner, the FDP, have called for cuts in social welfare spending.
Meanwhile, Federal Economy Minister Robert Habeck of the Green Party stated that he wants "all the projects we envisioned" to be implemented.
Amid this standoff, Scholz's SPD parliamentary group acknowledged earlier this week that parliament will no longer be able to pass the 2024 budget this year.
However, Scholz and his coalition partners still aim to reach a political agreement by the end of the year, which can then be submitted to parliament for consideration in early 2024.
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In response to the necessity to fill a €17 billion deficit, opposition conservatives and Scholz's junior coalition partner, the FDP, have advocated for cuts in social welfare spending. Despite this pressure, Scholz unequivocally stated, "In such a situation, there will be no reductions in social welfare in Germany."
