"Traffic light" continues to seek course for 2024 budget after coalition committee
While the SPD and Greens are campaigning for a renewed suspension of the debt brake in the "traffic light" coalition, the FDP is opposing this. Finance Minister Christian Lindner (FDP) is calling for savings rather than another circumvention of the debt rules in the Basic Law. He suggested on ZDF television on Wednesday evening that the gap should be closed by making savings - for example in the social sector, in spending on international aid and by reducing subsidies.
SPD General Secretary Kühnert confirmed on ZDF on Thursday the gap of 17 billion euros in the actual budget for the coming year mentioned by Lindner. However, a further 13 billion euros would be missing for 2024 due to the Karlsruhe ruling in the Climate and Transformation Fund (KTF).
The Constitutional Court had declared the replenishment of the climate fund with unused loans from the times of the coronavirus pandemic to be inadmissible. This means that the coalition government will lack a total of 60 billion euros in the coming years, which was supposed to flow into energy transition projects.
As a result, the coalition government has already decided to suspend the debt brake again this year. On Friday, the Bundestag will discuss the supplementary budget for 2023 for the first time.
The SPD also wants to declare an emergency next year in order to suspend the debt brake, as Kühnert confirmed. He cited the billions in expenditure due to the war in Ukraine and its consequences as the reason. According to the SPD General Secretary, the aim is to pass the budget this year.
In order to meet the necessary deadlines in the Bundestag and Bundesrat, an agreement would be necessary by Tuesday, according to information from coalition circles. Theoretically, however, the 2024 budget could also be adopted next year. This would result in provisional budget management with corresponding restrictions.
In the debate about possible savings, SPD Parliamentary Secretary Katja Mast criticized calls to cancel the citizens' allowance for Ukrainian war refugees. She told the "Tagesspiegel" newspaper that the costs previously borne by the federal government would then fall to the federal states and local authorities.
The Greens warned against cuts to climate projects. "Even in the current tight budget situation, we need the courage to invest in the climate-neutral modernization of our economy and secure jobs," said deputy parliamentary group leader Julia Verlinden to the AFP news agency. She called on the coalition to "also quickly reduce climate-damaging subsidies now - this will save money and protect the climate."
Janine Wissler, leader of the Left Party, criticized Lindner's plan to cut social benefits. "Anyone who now prefers to cut citizens' benefits and basic child protection instead of abolishing the nonsensical debt brake and ensuring fair taxation is doing politics at the expense of the poor," she said. Investments for a climate-friendly conversion must also "not be postponed".
The German Association of Towns and Municipalities called on the federal government and the opposition to work together to reform the debt brake. "Following the decision of the Federal Constitutional Court on the climate and transformation fund, Germany is in a serious financial crisis," the Funke Mediengruppe quoted from a position paper on Thursday. It calls for an exception to the debt brake for investments in climate protection, climate adaptation and infrastructure.
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- Despite the SPD and Greens advocating for the renewed suspension of the debt brake in the "traffic light" coalition, the FDP opposes this idea.
- Christian Lindner, the Finance Minister from the FDP, suggests closing the budget gap by making savings in areas like the social sector, international aid, and subsidies.
- SPD General Secretary Kevin Kühnert confirmed the 17 billion euro budget gap for the coming year mentioned by Lindner on ZDF, but stated that an additional 13 billion euros would be needed for 2024 due to the Karlsruhe ruling regarding the Climate and Transformation Fund (KTF).
- The Constitutional Court declared the funding of the KTF with unused loans from the coronavirus pandemic as inadmissible, affecting the coalition government's 60 billion euro energy transition projects for the coming years.
- The coalition government has already decided to suspend the debt brake again this year, with the Bundestag discussing the supplementary budget for 2023 on Friday.
- Kühnert suggested declaring an emergency next year to suspend the debt brake again, citing the war in Ukraine and its consequences as the reason, with the aim of passing the budget this year.
- An agreement to meet necessary deadlines in the Bundestag and Bundesrat would be necessary by Tuesday, as per information from coalition circles, with the option to adopt the 2024 budget next year resulting in provisional budget management.
- SPD Parliamentary Secretary Katja Mast criticized calls to cancel the citizens' allowance for Ukrainian war refugees, stating that the costs would then fall to federal states and local authorities.
- The Greens warned against cuts to climate projects, urging the coalition to reduce climate-damaging subsidies to save money and protect the climate, as per deputy parliamentary group leader Julia Verlinden.
- Janine Wissler, the leader of the Left Party, criticized Lindner's plan to cut social benefits, stating that it was political to place the burden on the poor while investing in a climate-friendly conversion.
- The German Association of Towns and Municipalities called for cooperation between the federal government and opposition to reform the debt brake, especially for investments in climate protection, climate adaptation, and infrastructure.
Source: www.stern.de
