SPD deputy leader Muller explores novel financial resources
Amid the domestic financial squabble, the SPD is pushing again for a loosening of the budget restriction. Achim Post, party deputy and faction vice chairman, urged the FDP not to dismiss proposals too hastily. This special investment fund, he suggested, could be stocked with personal savings from citizens. No endorsement from the Chancellor seems forthcoming in this regard.
Post finds it ill-advised to abandon the prospect of suspending the budget restriction lightly, considering the current difficult circumstances. The need for additional financing avenues becomes all the more pressing under such trying conditions, Post opined to the Redaktionsnetzwerk Deutschland (RND). "We should not rule out options hastily. This includes the possibility of again suspending the budget restriction - particularly given the ongoing war by Russia in Ukraine," Post underscored.
The SPD member also voiced his support for the German Industry Association's (BDI) demand for a credit-funded special investment fund for crucial endeavors. "Ideas and instruments like these should not be instantly dismissed, but rather thoughtfully evaluated instead," Post commented.
"Making an appeal to savers"
Post also backed the idea of drawing investments from private savings. "Tens of billions of Euros are parked in German savings accounts, yielding no return," Post pointed out. "We can extend an offer to these savers that balances safety and profitability." The state cannot guarantee high-interest rates. "However, a state-backed investment fund could potentially earn a reasonable return," the government would provide initial capital - these transactions would not be regarded as budget outlays and would not diminish the budget restriction.
Tough budget discussions are ongoing within the coalition. They aim to Finalize the budget proposal in the cabinet by July 3. Finance Minister and FDP leader Christian Lindner, who controls the budget restriction, hinted that it might get postponed. Government spokesman Steffen Hebestreit suggested a timeframe extending until the NATO summit, which commences on July 9. Federal Chancellor Olaf Scholz defended being frugal with finances. "We have to work with what we've got. There's no way around it," the Chancellor underscored.
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- Olaf Scholz, as the Chancellor, has maintained a frugal stance on finances, emphasizing the necessity of "working with what we've got" due to budget restrictions.
- The SPD, led by Achim Post, has proposed the consideration of a special investment fund filled with citizens' personal savings, aiming to tackle infrastructure investments without breaching the debt brake.
- Christian Lindner, the FDP leader and Finance Minister, has hinted at potential delays in finalizing the budget proposal due to tough negotiations, with debates over investments in infrastructure and managing public debt still ongoing.
