Traffic light parties wrestle over 2024 budget

Government - Traffic light parties wrestle over 2024 budget

Will the traffic light coalition decide before the end of the year what money will be spent on next year? Today, Federal Chancellor Olaf Scholz (SPD), Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) met for another round of negotiations - the end is open. One thing is certain: the time frame for a possible agreement is becoming increasingly tight.

Government spokesperson Steffen Hebestreit remains cautiously optimistic. At least the federal cabinet will probably discuss the plans before Christmas. "I am sure of that," said Hebestreit in Berlin. However, it is becoming increasingly unlikely that the budget will be discussed in the Bundestag and Bundesrat in time.

Cabinet referral missed on Wednesday

Internally, the cabinet meeting on Wednesday morning had originally been targeted: An agreement was to be reached by then to allow for an orderly process before Christmas. But by the morning it was clear that this was not going to happen. The talks must continue.

However, a decision in the Federal Cabinet is also possible by circular resolution, i.e. in writing. Hebestreit held out the prospect of a result "very soon". However, he could not commit to a specific day. He had learned that a certain amount of flexibility in terms of time was always necessary in this coalition.

Following a cabinet decision, the Bundestag Budget Committee will also need several more days to deal with the possible new plans before the parliamentary plenary can have a final discussion. The ideal scenario is currently a special budget week in the Bundestag directly before Christmas. The Bundesrat could then approve the plans on December 22. However, it would also be conceivable that only the Budget Committee would discuss the budget before Christmas - and the Bundestag would then only approve the budget in January.

Little negotiating time left this week

However, a fundamental political agreement is a prerequisite. And time must first be made available for this too. After all, the chancellor's and ministers' calendars are full - even if Habeck has decided to forgo his planned trip to the World Climate Conference in Dubai this week.

Lindner is expected to attend the meeting of EU finance ministers in Brussels on Thursday afternoon. "As things stand, he will be going," said a spokeswoman for his ministry. The SPD will then meet on Friday for its three-day federal party conference - Scholz is due to speak there on Saturday.

The pressure has arisen due to the Karlsruhe budget ruling. Germany's highest court declared a reallocation in the budget null and void. This not only means that 60 billion euros that had been budgeted over four years for climate protection projects and the modernization of the economy are missing. The ruling also had an impact on various credit-financed special funds, as it is now clear that the federal government may not set aside emergency loans for later years.

There is now a gaping hole of 17 billion euros in next year's budget. According to Lindner, however, this is not only due to the ruling, but also, for example, to the planned reduction in electricity tax to relieve the burden on the manufacturing sector and the increased level of basic income support.

Greens: No savings for the poorest

Savings in various areas are now being discussed, as well as the renewed suspension of the debt brake for 2024. The arguments for this seemingly simple solution with a resolution of an emergency in the Bundestag have not yet convinced him, Lindner confirmed in an interview with BR broadcast on Tuesday evening. The SPD and the Greens are currently arguing for this.

Green Party leader Ricarda Lang warned BR that the modernization of the country and the development towards a climate-neutral economy should not be stopped. "After all, this is about nothing other than jobs, prosperity and security for our citizens."

There will only be solutions if each of the three partners makes a move. The aim is to prevent a national crisis. However, the red line for the Greens is to make savings for the poorest. Lindner, on the other hand, sees further savings potential in social spending, for which the federal government spends 45 percent of its expenditure. At the same time, he emphasized: "Tax increases must remain out of the question."