Budget for 2024 - Traffic light wants to comply with the debt brake - Scholz announces massive cuts to the climate fund
A higher CO2 price, the reduction of environmentally harmful subsidies, but preferably no suspension of the debt brake in the coming year: the coalition government has found a solution to close the gap of 17 billion euros in the 2024 budget, as Chancellor Olaf Scholz (SPD) said in Berlin on Wednesday. Following the budget ruling by the Federal Constitutional Court, the coalition government will have to "make do with significantly less money" in order to achieve its goals.
Scholz had been working intensively with Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) over the past few days to find a solution. The Karlsruhe decision has far-reaching consequences, said Scholz at a joint press conference. It would mean cuts and savings. "We don't like making them," said the Chancellor. "But they are necessary."
Traffic light presents measures for improved 2024 budget
The agreement now provides for a bundle of measures. The CO2 price is to rise again in 2024 to the level of 45 euros planned by the previous government, said Federal Minister for Economic Affairs Robert Habeck (Greens) in Berlin on Wednesday. That is five euros more than previously planned. According to Finance Minister Christian Lindner, environmentally harmful subsidies will be reduced by a total of three billion euros.
According to Lindner, 12.7 billion euros will be cut from the Climate and Transformation Fund (KTF), which is used to finance energy transition projects, in the coming year. According to Scholz, 45 billion euros will be cut by 2027. However, this would "still leave a very high total volume" of 160 billion euros in the fund, the Chancellor emphasized.
Scholz did not rule out a renewed suspension of the debt brake if the military or financial situation in Ukraine deteriorates significantly in the coming year. "If the situation worsens as a result of Russia's war against Ukraine, (...) we will have to react," said Scholz. He referred to a deterioration of the situation on the front line or the reduction of aid to Ukraine by other previous supporters.
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The Traffic light coalition is planning to increase the CO2 price in 2024, reaching a level of 45 euros, as announced by Federal Minister for Economic Affairs Robert Habeck. This rise is part of a bundle of measures aimed at closing the budget gap, despite the cuts and savings needed due to the Karlsruhe decision.
According to Finance Minister Christian Lindner, 3 billion euros will be saved through the reduction of environmentally harmful subsidies in 2024. However, the Climate and Transformation Fund (KTF) will see significant cuts as well, with 12.7 billion euros being reduced in the coming year and a total of 45 billion euros being cut by 2027.
Chancellor Olaf Scholz did not completely rule out a renewed suspension of the debt brake if the military or financial situation in Ukraine deteriorates significantly. He mentioned the possibility of a worsening situation on the front line or a reduction of aid to Ukraine by other previous supporters as potential triggers for this action.
Despite these cuts, Scholz emphasized that the Climate and Transformation Fund will still have a "very high total volume" of 160 billion euros after the reductions, showing the coalition's commitment to funding climate projects. This information comes from a press statement following the budget ruling by the Federal Constitutional Court.
Source: www.stern.de
