Germany Tackle budget deficit with CO2 prices and kerosene

Germany: Tackle budget deficit with CO2 prices and kerosene taxes

The German government presents a way out of its budget crisis. She also wants to send a signal to Vladimir Putin.

Vienna/Berlin. The sun had not yet risen over Berlin when the German government announced a liberation strike. At six o'clock on Wednesday morning, Chancellor Olaf Scholz (SPD), Vice Chancellor Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) reached agreement on a budget for the year 2024 It took almost a month after the Constitutional Court completed its methods and spent the state budget.

A few hours later, on Wednesday afternoon, the three were in the press hall of the Federal Chancellery after the evening meeting. “In light of the decision, we have reprioritized the budget in recent weeks,” Scholz said. In other words: the German government wants to make cuts, save and earn more through higher taxes and fees. According to the German Chancellor, this will “generate” 17 billion euros. For now he has not provided an exact list. The budget is not expected to be decided before January.