household hole - The mayor demands an end to the squabbling between Black-Green
The FDP demands from Schleswig-Holstein's state government a responsible austerity measure. "This budgetary sleight of hand is making me increasingly crazy," said Landtagsfraktionchef Christopher Vogt to the German Press Agency. "Black-Green cannot speak of great work with a billion-dollar deficit. That's an obvious contradiction."
In the Finance Ministry, things have almost fallen apart in the past two years, said Vogt. "The government has lost a significant amount of oversight over the financial situation of the state." There were errors in managing reserves. "The new Finance Minister Silke Schneider is inheriting a heavy legacy." She succeeded the long-term incumbent Monika Heinold (Greens) on August 1st.
Billion-dollar deficit
According to the Auditor's Office, the state has created over 5,000 additional positions since Minister President Daniel Günther (CDU) took office in 2017. Black-Green plans to spend around 18 billion Euros in the current year, financed also with three Notekredits in the amount of 1.5 billion Euro (Corona, Ukraine and Baltic Sea). In addition, there are 130 million Euros in conjunctural debts.
"Given the billion-dollar deficit, it won't work just to save 200 million Euro at the beginning," said Vogt. The coalition will present its plans in September. Vogt expects that the liberal and SPD's budget complaint before the Constitutional Court will be successful. "The court will write the Landesregierung a few things in its ledger, and then Schwarz-Grün won't be able to plug the hole with more Notekredits."
Schneider's demand
"Ms. Schneider must show very quickly that she is limiting expenses and closing the hole," said Vogt. However, in the coalition, she needs assertiveness. It is clear that further Notekredits with justification of the Corona-Pandemic cannot be granted. "Referencing the effects of the war in Ukraine in the justification for the Notekredit will be difficult for the Landesregierung. Financing refugee costs in the north far beyond the refugees from Ukraine with a Ukraine Notekredit is simply impossible and will certainly be rejected by the court."
"The government wanted to use the Notekredits to extract even more from the full, possibly to create reserves for later years," said Vogt. The latest budgetary deferral list for the budget contains many points that the country would not have been able to afford in normal times. "Schwarz-Grün has launched many programs with the money, which are unlikely to be completed this year. Therefore, I believe there is a lot of savings potential."
Criticism of cuts in investments
Vogt expects tough times for the coalition after the summer break. "They will come into heavy waters." However, the CDU and Minister President Günther have such a strong will to maintain power that the coalition will last until the end of the electoral period in 2027. "I don't expect much from this coalition."
- The CDU, led by Minister President Daniel Günther, has faced criticism over creating over 5,000 additional positions since taking office in 2017, contributing to the state's significant debts.
- The current budget deficit of billions of Euros in Schleswig-Holstein's state government has been a source of concern for the FDP, leading to demands for responsible austerity measures.
- Christopher Vogt, the FDP's Landtagsfraktionchef, has expressed frustration with the government's financial mismanagement, citing errors in managing reserves and a loss of oversight over the state's finances.
- Silke Schneider, the new Finance Minister, has inherited a heavy legacy, with the state expected to spend around 18 billion Euros this year, financed in part by three Notekredits for Corona, Ukraine, and Baltic Sea expenses.
- The coalition's plan to save 200 million Euro at the beginning of the year will not be enough to address the billion-dollar deficit, according to Vogt, who expects the liberal and SPD's budget complaint before the Constitutional Court to be successful.
- Schneider will need to show quick results in limiting expenses and closing the budgetary hole, as further Notekredits for justifiable Corona-related reasons may be difficult to secure, especially if the Landesregierung attempts to use them to finance refugee costs or create reserves for future years.
- Vogt supports the idea of identifying savings potential within the latest budgetary deferral list, as many programs launched by the coalition with the Notekredit funds may not be completed this year.
- Monika Heinold, the former Green Finance Minister, was succeeded by Silke Schneider on August 1st, leaving the new minister with a significant challenge to improve the state's financial situation and address the growing concerns over debts and austerity measures.
