Still no breakthrough on the 2024 budget in sight - FDP in no hurry
Following the Federal Constitutional Court's budget ruling, there is a shortfall of around 17 billion euros in next year's budget. Federal Chancellor Olaf Scholz (SPD), Federal Finance Minister Christian Lindner(FDP) and Economics Minister Robert Habeck (Greens) have been discussing in small groups for days how the gap can be closed.
If no agreement is reached in the near future, the budget cannot be passed by parliament until next year. This would result in provisional budget management with restrictions on new projects.
In view of a total budget of 450 billion euros, closing the gap is "manageable", said FDP parliamentary group leader Dürr on rbb24 Inforadio. However, there is "not just one solution". It is a matter of "taking a very close look at the many thousands of budget items", he added. It would be necessary to examine in detail where cuts could be made. That takes time.
"This is the biggest domestic political crisis that this 'traffic light' has to overcome," said SPD leader Lars Klingbeil on the ARD program "Maischberger" on Wednesday evening. Everyone would have to move. He pointed out that the coalition partners were now also going through the spending plan for the Climate and Transformation Fund (KTF), which Karlsruhe had objected to. The question is "which funding programs can be cut".
The Constitutional Court had declared the transfer of 60 billion euros in unused coronavirus loans to the KTF inadmissible. This means that the traffic light government will lack funds in the coming years to finance central projects of the energy transition - from the development of a hydrogen network to subsidies for the establishment of chip manufacturers.
There must now be "significant changes" to the KTF's business plan, said Florian Toncar (FDP), Parliamentary State Secretary at the Federal Ministry of Finance. It would not work without restrictions; priorities would have to be set. "These will be tough negotiations."
Franziska Brantner (Greens), Parliamentary State Secretary at the Federal Ministry of Economics, warned against cuts to key modernization projects. Investments "in infrastructure and in the transformation of the economy towards climate neutrality" must continue to be possible, she demanded in the Rhein-Neckar-Zeitung.
Meanwhile, the SPD has not yet given up hope that the liberals will agree to the renewed suspension of the debt brake in the coming year. "We hope that the FDP will also see reason," Esken told the newspapers of the Redaktionsnetzwerk Deutschland (RND, Friday editions). The necessary emergency situation is to be justified by the billions spent to support Ukraine.
Klingbeil emphasized that Germany has "a great responsibility" here. It is important "that there is no competition between investing in the future and supporting Ukraine", he told the RND newspapers.
Meanwhile, the Bundesrat cleared the way for the final adoption of the supplementary budget for 2023 next week. This is also a consequence of the Karlsruhe ruling and provides for the suspension of the debt brake for the fourth time in a row. The Bundestag will now make a final decision on the bill next Thursday. The following day, it could be finally discussed in the Bundesrat.
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- The FDP, led by Christian Lindner, is in no hurry to find a solution for the 2024 budget shortfall of approximately 17 billion euros.
- According to FDP parliamentary group leader Christian Dürr, closing the budget gap is manageable, but not with a single solution.
- The leaders of the SPD, FDP, and Greens have been in discussions to find a way to bridge the fiscal gap.
- If no agreement is reached soon, the budget cannot be passed by parliament until next year, leading to provisional budget management with limitations on new projects.
- The budget crisis is the biggest domestic political challenge for the traffic light coalition, according to SPD leader Lars Klingbeil.
- Klingbeil highlighted that the coalition partners are now scrutinizing the spending plan for the Climate and Transformation Fund (KTF), which the Federal Constitutional Court objected to.
- The Constitutional Court's ruling deemed the transfer of 60 billion euros in unused coronavirus loans to the KTF inadmissible.
- Florian Toncar, FDP's parliamentary state secretary, acknowledged that significant changes are needed to the KTF's business plan.
- Franziska Brantner, Greens' parliamentary state secretary, urged against cutting key modernization projects, such as infrastructure and the transformation towards climate neutrality.
- Despite the current challenges, the SPD remains hopeful that the FDP will agree to the renewed suspension of the debt brake in the upcoming year.
- Saskia Esken, SPD's leader, expressed hope that the FDP will understand the necessity of emergency funding for supporting Ukraine.
- Olaf Scholz, Germany's Federal Chancellor and SPD's leader, emphasized the country's significant role in supporting Ukraine, without compromising investments in the future.
Source: www.stern.de
