In his government statement, Chancellor Scholz admitted that the government faces budgetary problems. He did not present solutions, but announced the end of the energy price cap. CDU leader Merz denied Scholz’s suitability as chancellor.
Chancellor Olaf Scholz admitted that Karlsruhe’s decision makes the job of his traffic light coalition much more difficult. “This decision creates a new reality – for the federal government and for all current and future governments, at the federal and state levels. A reality that, however, makes it more difficult to achieve important and widely shared objectives for our country”, said the SPD politician in a government statement in the Bundestag. Germany faces “challenges that our republic has probably never faced before in this concentration and severity”.
Discussions about the consequences of the sentence have not yet been concluded. But it is clear: “With the knowledge of the current decision, we would have taken other paths in the winter of 2021 – paths that the court also pointed out in its ruling.”
Energy price brakes will end at the beginning of the year
Scholz also announced the end of the brakes on electricity and gas prices at the beginning of next year. This is possible because electricity and gas tariffs are again available throughout Germany and are below the upper limits of the price brakes, he said.
Furthermore, gas storage facilities are “so well filled that we don’t expect any sudden price jumps.” In fact, price brakes were supposed to be applied until the end of March.
“The State will continue to fulfill its tasks”
At the same time, Scholz guaranteed reliable state services despite the budget crisis. Current expenses are not affected, said the SPD politician. “The State will continue to fulfill its duties.”
He also said this to citizens who are bothered by some crazy suggestions and targeted false reports. “The Federal Constitutional Court’s decision changes nothing in your everyday life here and today – regardless of whether you receive family benefit or student loan, pension or housing benefit.”
Merz: We will maintain the debt brake
Opposition leader Friedrich Merz harshly attacked Scholz after his speech and denied him the authority to become chancellor. “You can’t,” he said. A chancellor’s shoes are at least two sizes bigger than Scholz’s. The SPD politician only gave technical answers to highly political decisions. “You are a powerful plumber,” criticized Merz.
He also made it clear that his party wants to maintain the debt brake. “Please be under no illusions: we will maintain the debt brake in the Basic Law,” said the leader of the Union parliamentary group in the Bundestag.
Merz warned the traffic light against the attempt to create a barrier in the Union on the issue of the debt brake. “Decisions are made here in the German Bundestag and not in the Berlin City Council,” said Merz, alluding to statements by the capital’s mayor, Kai Wegner. He criticized the debt brake in its current form, as did other CDU heads of government in the federal states.
Ruling of the Federal Constitutional Court
The Federal Constitutional Court declared the reallocation of 60 billion euros in the 2021 budget null and void. 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. The federal government did this in several special funds, including for brakes on energy prices.