The traffic light coalition needs a lot of money quickly. Finance Minister Lindner speaks of 17 billion euros – and names three areas in which he wants to make savings. The SPD has other ideas.
The traffic light coalition is also intensively looking for billions at the weekend to plug the budget hole for next year. It is also not entirely clear how much money is missing. The finance minister speaks of 17 billion euros. And Christian Lindner has now also specified in which areas he believes savings are possible. “We will have to deal with three major cost blocks,” the FDP politician told the newspapers of the Funke media group. He mentioned the areas of social affairs, including citizens’ money, international financial aid and unspecified funding programs.
Where the finance minister wants to save money
For Social The federal government currently uses 45 percent of its spending. “We will see how we can become more accurate,” announced Lindner. “For example, it’s about getting people into work more quickly. That benefits people and that benefits the federal budget. For example, there is a job boost for the refugees from Ukraine.” This probably means that they should be placed more persistently on the job market.
With that in mind Citizen’s money the Finance Minister pointed out that the inflation rate is developing significantly better than forecast when the standard rate was set for 2024. Inflation fell to 3.2 percent in November – the planned increase in citizens’ benefits from January is still based on inflation of 9.9 percent, as the social policy FDP parliamentary group spokesman Pascal Kober made clear. Lindner said: “When examining the gap between wages and social benefits, we will therefore have to look at the adjustment process. Because it always has to make a noticeable difference whether someone works or doesn’t work.”
Also international financial aid and Funding programs targets Lindner. Germany is at the forefront when it comes to development cooperation and international climate protection financing, said Lindner. “We can happily stay in first place. But perhaps the gap to second place can be reduced.” The aim could be a “fairer international burden sharing”.
In addition, there are “numerous subsidies for which the question must be asked whether they actually meet their goals or are out of date,” explained Lindner. But it is still too early to name individual programs. “Otherwise this will lead to a run on funding programs at the last few meters.”
Lindner may have expected contradictions within the traffic lights when making his savings proposals. The SPD strictly rejects social cuts, as do the Greens. And Chancellor Olaf Scholz just launched his international climate club in Dubai and promised extensive financial aid for the federal government.
SPD wants over Tax increases talk
The SPD therefore doesn’t just want to talk about savings, but also puts the agreed waiver of tax increases up for discussion. Party leader Lars Klingbeil told the German Press Agency that it was agreed in the coalition agreement that investments in the country’s future should be financed with money from the Corona pot. “It was deduced from this that we are returning to normal with the debt brake and that there is no need for a tax increase.” The former was broken by the ruling of the Federal Constitutional Court. “For us as the SPD, that of course also means that we are now talking about the other two things.”
The FDP, in turn, strictly rejects tax increases, as well as a renewed suspension of the debt brake for 2024. Even if Lindner has now signaled a willingness to talk here. “I like to listen to arguments.” However, he is “not yet” convinced that a new suspension can be justified in a constitutionally viable manner. In his opinion, the situation on the energy markets as a result of the Ukraine war no longer constitutes an emergency.
Why you have to save at all
The Federal Constitutional Court had declared the reallocation of 60 billion euros in the 2021 budget to be null and void. The money was approved as a Corona loan, but was subsequently intended to be used for climate protection and the modernization of the economy. At the same time, the judges decided that the state was not allowed to set aside emergency loans for later years. But the federal government did this in special funds – which is now tearing additional holes in the budget. Lindner sees a “need for action” of 17 billion euros for 2024.
However, in one area everything should remain as planned: defense. There should be no cuts in the Bundeswehr in view of the changed threat situation since the Russian attack on Ukraine. “The defense budget remains untouched,” assured Lindner.