Negotiations on the budget crisis in Germany were actually supposed to enter the “decisive round” on Sunday night. Yet they were tolerated – again.
Traffic light coalition leaders are still seeking money for the 2024 federal budget. Negotiations were postponed until Monday, Sunday night. Nothing was initially known about the progress of the negotiations, which brought together Chancellor Olaf Scholz (SPD), Vice Chancellor Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP).
At the SPD party conference over the weekend, Scholz expressed his confidence that a deal could be reached. He ruled out cutting social benefits. Meanwhile, FDP parliamentary group leader Christian Dürr once again spoke out against tax increases in order to obtain money for the new budget. “Tax increases in a country with the highest taxes are prohibited,” he said on Sunday evening on the ZDF program “Berlin Direkt”. Anyone who talks about wanting to tax the “super rich” in Germany more heavily is usually talking about medium-sized family business owners. “That means you’re not taxing anything other than jobs here,” he said.
Where should we start to ensure a “solid budget”?
Dürr advocated not abandoning the path of consolidation when preparing the budget. “The federal budget will amount to around 450 billion euros next year. This is significantly more than in pre-Corona times. That means the overall volume has really increased,” he said. Now you can “take your time” and take a closer look at where you can save so you can create a solid budget. “Solidity must be applied now. This is what the federal states still need to do now. The federal government is now delivering.”
On the other hand, the SPD party conference over the weekend indirectly advocated that the debt brake be lifted again in 2024. Delegates unanimously decided that the “constitutionally stipulated budgetary margin” must be used in the interests of the population. Politically, the war in Ukraine created the prerequisites for an emergency that would allow debt to increase. The wording may still leave room for interpretation.
Support for Ukraine “absolutely necessary”
Transport Minister Volker Wissing (FDP) defended his party's line. Lindner is completely clear and says that support for Ukraine is absolutely necessary. “And at the same time he wants to draw up a 100% constitutional budget,” said Wissing in ARD’s “Berlin Report.” Responding to a question about speculation that the FDP could leave the government because of the budget crisis, the minister replied: “The FDP wants to shape this country”. .”
In mid-November, the Federal Constitutional Court declared null and void the reallocation of 60 billion euros from the 2021 budget to the climate and transformation fund. The money was approved as a Corona loan, but was later intended to be used for climate protection and modernization of the economy.
At the same time, the judges ruled that the state was not authorized to set aside emergency loans for later years. But the federal government did this through special funds – which is now opening additional holes in the budget. Lindner sees a “need for action” of 17 billion euros in the main budget for 2024. There is also a lack of 60 billion euros for the coming years in the so-called Climate and Transformation Fund (KTF), a special fund that is economically separate from the main budget.
The parliamentary managing director of the FDP parliamentary group, Torsten Herbst, told “Bild” that the traffic light coalition should take enough time for a constitutional budget. He presented the prospect of adoption in the Bundestag at the end of January 2024. “But we are not under any pressure; a provisional budget is not a problem. “I am optimistic that the Bundestag will approve a constitutional budget by the end of January,” said Herbst. (APA/dpa)