The budget is blocked - Germany urgently steps on the brakes

2023-11-21 13:40:58, Kosova & Bota CNA

The budget is blocked - Germany urgently steps on the brakes

Economy Minister Robert Habeck and Chancellor Olaf Scholz must find a solution for the 60 billion missing in the budget

The German Ministry of Finance has extended the budget freeze for the climate and transformation fund to almost all federal budget parameters. The obligations in force will continue to be respected even further, it is said by the circles of the Ministry of Finance, according to a request of the ARD studio. The Ministry also stops the powers of the administration to assume payment obligations for the next few years, such as for several-year projects, to avoid the financial burden for the next few years. It is further stated that there will be exceptions only in special cases.

Decision of the Constitutional Court

Last week, the Constitutional Court decided that the use for other purposes of loans of 60 billion euros from the 2021 budget is not in accordance with the law. These funds were then foreseen for overcoming the Corona crisis, but then it was decided to change their purpose and be spent on a fund for climate protection and modernization of the economy. Now these billions are no longer available for the so-called climate and transformation fund.

The German government reacted by freezing certain projects that were supposed to be financed with this fund. For days, the coalition government has been trying to find a way out after the decision of the Constitutional Court in Karlsruhe. The Social Democrats of the SPD have raised the voice for the temporary suspension of the debt brake, to fill the gap of 60 billion euros. The German Minister of Economy, Robert Habeck, supports the suspension of the debt brake, but does not see that there is a majority for this change.

The German Minister of Economy, Robert Habeck predicts difficult days

Where will the missing money come from?

General Secretary of the SPD; Kevin Kühnert told ARD-Morgenmagazin that the emergency for climate protection and economic transformation has not changed even after the decision. We need to find other sources of financing, the 60 billion should not be saved with "harvesters", according to him.

And the left-wing politician, Dietmar Bartsch, demanded a "climate tax for the rich" due to the financial emergency in Germany. "After the Karlsruhe decision there should be no social cuts to fill the €60 billion gap." FDP, the liberal party is against changing the law on the debt brake and demands social cuts.

German Ministry of Finance

On Tuesday, the experts will help the government and the parliament in a special meeting to properly interpret the budget decision of the Constitutional Court. The Parliamentary Budget Committee conducts a hearing with experts who have been appointed by various parliamentary groups. In a notice published in advance, they are of the opinion that the decision of the Constitutional Court will have consequences not only for the climate fund but also for other special funds./ DW