In light of the economy, the discussion about the budget continues – even at traffic lights. Economy Minister Habeck warns against putting the laboriously achieved compromise at risk. The government spokesperson assured that the agreement would be implemented.
The budget compromise has been in place since last week, but some of the measures are highly controversial within the traffic light. Now Vice Chancellor Robert Habeck warns that the compromise on the austerity package must be cancelled. “If individual supports are now removed without inserting new ones, the overall solution collapses,” said the Federal Minister for the Green Economy in an interview with the dpa news agency.
Anyone who wants change in one place must offer coordinated counter-funding that is viable for all parties. “But we can't afford not to give an answer because the budget has to be done.”
Government spokesperson: Agreement will be implemented
The government spokesperson also felt obliged to make it clear once again: “The government is firmly determined to implement the agreement,” said Steffen Hebestreit. There is little willingness for changes in the government. He emphasized:
It is true, and the Federal Chancellor said this, the Vice-Chancellor said this and the Federal Minister of Finance also said it clearly on Wednesday in the press release in the Federal Chancellery, that this is a budget in which cuts will also have to Be done. And these cuts also affect areas where it obviously hurts.
FDP and SPD protests
Planned cuts to the federal budget sparked violent protests. On Sunday, the FDP parliamentary group in the Bundestag announced a veto on traffic light leaders' plans to abolish tax incentives for farmers. There is also dissatisfaction among the SPD parliamentary group with the end of the bonus for electric cars.
The hard-negotiated compromise became necessary following a ruling by the Federal Constitutional Court. The Karlsruhe court ruled that unspent Corona funds could not be transferred to the climate fund.
Regarding the traffic light budget commitment, Habeck spoke of a package that implements the Constitutional Court decision, was drawn up based on existing rules and demands something from all sides. “Cuts are hard on people and I wish I had avoided them.” He can understand all those affected who are now disappointed.
Faced with demands not to make cuts in certain areas, Habeck said: “What politicians cannot do is escape responsibility and just say where savings should not be made.” He defends commitment, also because he knows “that every cut means suffering”.
No solution for the future of the debt brake
The debt brake issue appears to have only been resolved for now. In an interview with dpa, Habeck once again spoke out in favor of changing the regulations. “It has long been known that I consider the debt brake rules, as they stand, to be outdated”: Germany must invest massively “in order to keep up with global competition for future technologies, and must make the transition socially only.”
The Federal Minister of Finance, Christian Lindner, insists on compliance with the debt brake. In the Berlin report, he said it was important to avoid suspending regulation and raising taxes. According to Lindner, there was a clear consensus during the negotiations on whether to reinstate or lift the debt brake – for example, in case special costs arise from Russia's war against Ukraine. “With each new situation that comes to us and that is beyond the control of the State and cannot be reflected in the budget, we will naturally consider making an exception to the debt brake”, said the FDP politician.
Cuts in support for farmers are causing protests
Concrete savings, such as the elimination of the tax privilege for agricultural diesel, are particularly controversial. The farmers' association demands that the government withdraw its plans to abolish regulations on agricultural diesel and tax exemptions on vehicles. The association wants to protest with numerous tractors at the Brandenburg Gate in Berlin. The FDP parliamentary group has already made it clear that it wants to maintain the subsidies, and the Minister of Green Agriculture, Cem Özdemir, has also expressed concerns. Finance Minister Lindner does not want to close himself off from the debate, he explained in the Berlin report: “If the Agriculture Minister and the FDP parliamentary group think that this needs to be discussed as part of a package, it needs to be taken seriously. ”
Sharp criticism of the planned cuts comes from the Union. CDU vice-president Silvia Breher said the industry would be burdened with an additional burden of almost a billion euros per year. “This decision does not serve the climate because there are no alternatives available to farmers and foresters.” There is no security in the planning nor the financial resources necessary to reconvert livestock farming.
Leaders of SPD parliamentary groups criticize the abrupt end of the bonus for electric cars
The suspension of the state bonus for the purchase of electric cars is also generating discussion. Three deputy leaders of SPD parliamentary groups stated that the suspension of funding until the end of next Sunday, announced at short notice by the Ministry of Economy on Saturday, was “extremely regrettable”. They asked Habeck to organize a more credible transition. “Citizens expect realistic transition periods from political decision-makers”, said the vice-presidents of the parliamentary groups, Detlef Müller, Matthias Miersch and Verena Hubertz.
Habeck justifies the expiration of the bonus: “I would also like to promote electric mobility with the environmental bonus for longer, be able to use more money for the solar industry or limit the costs of grid fees. But I know that other things are important for the others.”
So far, according to the ministry, financing for the e-car was due to expire at the end of 2024 – or earlier if funds have been exhausted.
SPD leader suggests increasing transport subsidy
SPD leader Lars Klingbeil also wants to expand the transport subsidy. “I am in favor of having a debate about increasing it,” he said on the “Ronzheimer” podcast on “Bild”.
When it comes to the traffic light coalition's budget commitment, it's clear: “There are burdens on the working middle class. I'm not happy with that either.” Klingbeil specifically mentioned the expected increase in fuel prices. This group should be highlighted in the second half of the legislature. The SPD therefore wants to “consider increasing the transport subsidy next year”. However, the SPD leader did not want to commit to any amount.
The commuting allowance is deducted when calculating income tax for the one-way distance between home and work. It's 30 cents per kilometer, from the 21st kilometer 38 cents.