Traffic light leaders continue to seek solution in dispute over 2024 budget

Traffic light leaders continue to seek solution in dispute over 2024 budget

According to the Bild newspaper, a financial gap of more than ten billion euros still needs to be closed after days of negotiations between Chancellor Olaf Scholz(SPD), Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck (Greens).

Lindner had put the gap in the 2024 budget at 17 billion euros following the Federal Constitutional Court's budget ruling. According to SPD General Secretary Kevin Kühnert, however, a further 13 billion euros would be added if the financial gap in the Climate and Transformation Fund (KTF) is also to be closed as a result of the Karlsruhe ruling. This fund is used to finance key energy transition projects.

The "Bild" newspaper also put the total amount at 30 billion euros. Scholz, Lindner and Habeck have so far raised or saved "well under 20 billion euros" in funding, the newspaper reported, citing coalition circles.

"The willingness to quickly agree on a list of measures is there," said deputy FDP parliamentary group leader Lukas Köhler to Bild. But there is "no threat of the end of the world if the state budget is not ready until mid-January". This would lead to provisional budget management with restrictions on new projects from the beginning of January.

SPD chairman Lars Klingbeil was optimistic about an agreement. He said on Monday evening on the program "RTL Direkt" that he was "confident that we really will fill this serious gap in the budget somehow in the next few days".

When asked whether this would also include savings in social areas, Klingbeil conceded: "We know that we as the SPD have to make our contribution. In other words, things that are important to us. (...) Of course, savings have to be made for everyone."

At its federal party conference at the weekend, the SPD called for the debt brake to be suspended in 2024 due to the financial shortfall. They want to justify this with the consequences of the Ukraine crisis. However, Lindner's FDP has so far opposed such a move and is focusing on savings.

CDU Secretary General Carsten Linnemann backed Finance Minister Lindner. He is "a man of principle", he told the broadcasters RTL and ntv. Lindner would not allow tax increases and would stick to the debt brake. "That's why the FDP is an important little corrective in this traffic light government." However, the coalition is built on sand and is only held together by money. "And now the whole house of cards is collapsing."

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1. The FDP, led by Finance Minister Christian Lindner, has been advocating for savings to close the financial gap in the 2024 budget after the ruling of the Federal Constitutional Court.
2. SPD General Secretary Kevin Kühnert argued that the financial gap in the Climate and Transformation Fund (KTF) could add another 13 billion euros to the budget deficit.
3. The Bild newspaper reported that the coalition leaders, including Olaf Scholz, Lindner, and Robert Habeck, have raised or saved less than 20 billion euros to address the budget issue.
4. According to the Bild, Lukas Köhler, the deputy FDP parliamentary group leader, expressed optimism about reaching an agreement but noted that delays could result in provisional budget management.
5. Lars Klingbeil, the SPD chairman, expressed confidence that a budget solution would be found within a few days, but conceded that savings would be needed in social areas.
6. The SPD has proposed suspending the debt brake in 2024 due to the financial shortfall caused by the Ukraine crisis, but the FDP, led by Lindner, has opposed this move and focused on savings instead.
7. Carsten Linnemann, the CDU Secretary General, supported Lindner and criticized the coalition for being built on sand, with the debt brake serving as an important "little corrective" for the FDP in the traffic light government.
8. The Bild also reported that the dispute over the budget could affect the planned energy transition projects financed through the KTF.
9. The disagreement over the budget has sparked debate on the possibility of implementing a citizen's income, with some warning against populist measures.
10. The energy transition and efforts to achieve a breakthrough in this area have become increasingly important as Germany seeks to reduce its carbon footprint and combat climate change.
11. The German government and coalition leaders have been under pressure to find a solution to the budget crisis, given the country's large expenditures and commitments.
12. The dispute over the budget and the energy transition has been closely followed by various media outlets, including RTL and the picture newspaper, which have provided extensive coverage of the negotiations and developments.

Source: www.stern.de