Federal finances - "Shutdown" as in the USA also possible for German budget?
When the US government runs out of money again, the term "government shutdown" dominates the headlines - meaning a standstill in government business. Following the ruling of the Federal Constitutional Court, could such a scenario also be imminent in Germany? No.
What is a shutdown? If the members of Congress fail to reach an agreement on the US budget, government offices and agencies, among others, will remain closed. Only essential areas such as the federal police or secret services will continue to operate.
How is Germany different? While the tug-of-war in the USA is repeated every year, mainly due to party politics - most recently under President Joe Biden - such a state of emergency is not possible in Germany. In Germany, the Basic Law (Article 111) provides for the state to remain fully functional even if a budget law is not passed on time. This is regulated by so-called provisional budget management.
The federal government is authorized to make all expenditures necessary to maintain the administration and fulfil legal obligations until the budget law is promulgated. In practice, the Federal Ministry of Finance can authorize the departments to implement the unapproved budget bill up to a certain percentage as an upper limit. The US government does not have this authority in this form.
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Source: www.stern.de
