Ways out of the budget crisis - Scholz speaks in the Bundestag
Ahead of the government statement in the Bundestag, CDU/CSU politicians have demanded leadership from Chancellor Olaf Scholz (SPD) in the budget crisis. The Chancellor must explain how he intends to put the 2023 and 2024 budgets on a solid footing, CDU/CSU parliamentary group vice-chancellor Jens Spahn told the Rheinische Post newspaper.
Scholz wants to speak in the Bundestag this morning (10.00 a.m.) about the budget crisis of the coalition government. A two-hour debate is planned following his government statement. It is to be expected that the opposition will sharply attack the government for the unconstitutional debt maneuver.
Kretschmer: Preventing a national crisis
The Federal Constitutional Court had declared the reallocation of 60 billion euros in the 2021 budget null and void. The money had been approved as a coronavirus loan, but was subsequently to be used for climate protection and modernizing the economy. It is now no longer available. At the same time, the judges ruled that the state was not allowed to set aside emergency loans for later years. However, because the federal government has done this, loans of almost 45 billion euros are now to be approved retrospectively for the current year.
The opposition had urged Scholz to comment on the consequences of the ruling in the Bundestag or in a televised speech. The Chancellor then published a video message on Friday. In it, he assured citizens of quick decisions on how to proceed and emphasized that state aid would still be possible in special emergencies. However, there are now clear guidelines for this.
North Rhine-Westphalia's Minister President Hendrik Wüst complained that the "traffic light" government had managed to ruin Germany's reputation as an anchor of stability in two years. He told the Redaktionsnetzwerk Deutschland (RND) that it was up to the Chancellor himself to turn the tide - "with honesty instead of perpetual trickery". Saxony's head of government Michael Kretschmer (both CDU) told the "Tagesspiegel" that the aim was to prevent a state crisis.
Union wants to examine supplementary budget
On Monday, the Cabinet had initiated a supplementary budget for the current year and thus also the first steps towards suspending the debt brake in the Bundestag. CDU/CSU parliamentary group leader Friedrich Merz announced that the supplementary budget would be closely examined. Only then will the parliamentary group decide whether it will take legal action against it before the constitutional court, said Merz, who is also CDU chairman. With the construction planned by the traffic light, however, there seems to be a way to make the supplementary budget constitutional.
"This does not mean that we agree with the budget. I don't see that happening," emphasized Merz, adding: "But I don't see the question of whether we will take legal action against it at the moment." For the 2024 budget, on the other hand, which still needs to be revised by the traffic light, everything is open. "If the federal government is of the opinion that it should also have an extraordinary emergency situation established for 2024, then I don't see this as constitutional, at least from today's perspective." The CDU/CSU would then take action against this again if necessary.
Lindner expects tough negotiations
Finance Minister Christian Lindner has already prepared the parliamentary groups in the Bundestag for tough negotiations on next year's budget. "Considerable efforts will still be required to finalize the 2024 federal budget," the FDP politician wrote in a letter to the SPD, Green and FDP parliamentary groups, which was obtained by the German Press Agency. "We will have to hold intensive discussions, which will not always be easy."
FDP parliamentary group leader Christian Dürr, meanwhile, called on the citizens to follow an austerity course in the coming years. "We will have to remain moderate far beyond this election period," he told Stern magazine. He also confirmed in the ARD "Tagesthemen" program that the FDP stands by the debt brake.
- During the debate in the Bundestag following Chancellor Olaf Scholz's statement on the budget crisis, members of the opposition are expected to critique the government's unconstitutional debt maneuver, specifically mentioning Finance Minister Christian Lindner.
- Despite the Budget Crisis, Olaf Scholz and his 'traffic light' coalition government, including Vice-chancellor Jens Spahn (CDU/CSU) and Finance Minister Christian Lindner (FDP), will need to work closely to revise the 2024 budget, as the CDU/CSU is cautiously considering legal action against any extraordinary emergency measures proposed.
- In an effort to prevent a state crisis and build trust, Olaf Scholz (SPD) and his government, including the FDP's Finance Minister Christian Lindner, should focus on open and honest negotiations with all parliamentary groups, particularly in the context of crafting the 2024 budget and ensuring compliance with Germany's fiscal rules.
Source: www.dpa.com
