Supplementary budget without loans: reaction to ruling on aid package

Parliament - Supplementary budget without loans: reaction to ruling on aid package

The Brandenburg-Aid Package to alleviate the energy crisis should not be financed through new debts this year as a consequence of the Constitutional Court's judgment. The state parliament asked the state government in a special session on Thursday to amend the supplementary budget 2024 and provide the necessary funds from the state's reserves, not from credit authorizations. Finance Minister Katrin Lange (SPD) advocated for this solution in the parliament, which would prevent the need for a new declaration of a state of emergency and a more detailed description of the connection between the aid measures and the declared state of emergency.

So far, according to the Finance Ministry, approximately 850 million Euros in aid measures from the Brandenburg-Package have been approved for this year. The Constitutional Court declared the regulations for the aid package in response to the Ukraine crisis on the previous Friday invalid. The judges granted the complaint of the AfD parliamentary faction in this regard. The approved payments are not in danger, the court clarified. The Constitutional Court considered the declaration of a state of emergency to be justified, but criticized the insufficient justifications for the aid. The aim is to support families, municipalities, hospitals, and the economy.

Minister wants to secure aid package

Finance Minister Lange sees only one way to react legally and promptly to the judgment: If the use of emergency credit authorizations can be completely avoided in this year, the risk of litigation will be significantly reduced, and the previously approved measures of the Brandenburg-Package will be secured from the reserve, said Lange. "Because we have achieved a lot of sense in the crisis for Brandenburg and its inhabitants with this," she added. The demand from the AfD faction for a dismissal in the wake of the court ruling was rejected by Lange: "You can wipe your own back."

The complaint targeted the original package. The state government and parliament had already changed the regulation in accordance with the constitutional judgment of the Federal Constitutional Court, declared the state of emergency for this year again, and passed a supplementary budget. The red-black-green coalition and Finance Minister Lange saw further risks for the amended supplementary budget, which they wanted to prevent. Green fraction leader Benjamin Raschke looked at the aid: "Nobody needs to worry, we won't let anyone hang."

AfD fraction leader Hans-Christoph Berndt pointed to the concerns that already existed before the decision on the credit-financed Brandenburg-Package: "They had plenty of time to establish a constitutionally compliant budget," said Berndt. The AfD faction had proposed a larger aid package with the declaration of a state of emergency at the end of 2022 to cover wage and income taxes in the energy crisis. The spokesman for the Free Voters in the parliament, Péter Vida, criticized the coalition: "The warning voices of the state auditor and the opposition were all ignored by you." Left fraction leader Sebastian Walter demanded the abolition of the debt brake. Lange sees the debt brake as "an unfortunate thing for parliamentarism".

The Finance Minister is now advocating for more hurdles for quick relief packages in times of crisis following the Potsdam Ruling. "The Potsdam Judgment significantly limits the actions of the government and the elected representative body in crisis situations," said Lange. CDU Fraction Leader Jan Redmann spoke of a "turning point for fiscal policy." "Future budgets will be drawn up under other circumstances," said Redmann. He demanded a "focus on the essentials" - and that was economic growth.

Judgment of the Constitutional Court of Brandenburg on Relief Package

1. In response to the Constitutional Court's judgment, the Brandenburg parliament requested a special meeting with the state government to revise the supplementary budget 2024 and finance the aid package from reserves rather than new credits.
2. Finance Minister Katrin Lange, from the SPD, suggested this approach in the parliament, aiming to prevent a new state of emergency declaration and a detailed justification of the aid measures' connection.
3. Minister Lange argued that avoiding emergency credit authorizations in 2024 would significantly reduce litigation risks, secure the previously approved measures from the reserve, and protect the Brandenburg-Package's benefits for the population.
4. The AfD parliamentary faction had filed a complaint against the original aid package regulations, which the Constitutional Court declared invalid on Friday.
5. The new Brandenburg-Package's aid measures, totaling approximately 850 million Euros so far, were not at risk from the court's decision, which upheld the justified state of emergency declaration but criticized the insufficient justifications for the aid.
6. SPD Finance Minister Lange rejected the AfD's call for her dismissal following the court ruling, joking, "You can wipe your own back."
7. After the constitutional judgment of the Federal Constitutional Court, the state government and parliament adjusted the regulations, declared a state of emergency for 2024, and passed a supplementary budget, aiming to prevent further risks in the amended supplementary budget.

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