After the budget verdict, Economics Minister Habeck wants to stick to the funding of climate projects worth billions. The dispute over debt and energy price caps continues. The traffic light wants to reach agreement on the supplementary budget today.
Even after the budget verdict, Federal Minister of Economics Robert Habeck wants to continue funding economic projects worth billions. The Green politician also sees a solidarity with the states.
After discussions with the federal and state economics and energy ministers, he said that various measures would now be discussed. He didn’t want to say which ones so that they wouldn’t be talked about. The projects linked to the climate and transformation fund affect the “economic core of Germany”.
Bavaria’s Economics Minister Hubert Aiwanger (Free Voters) spoke of “indispensable” and “existentially important” projects so that “Germany as a business location can move into a competitive future.” Armin Willingmann, Energy Minister of Saxony-Anhalt, emphasized that compromises could not be made in individual projects.
Different Views on the debt brake
Habeck and Willingmann spoke out in favor of declaring an economic emergency for 2023 and 2024 in order to suspend the debt brake. At this point there are different opinions among the parties, said Willingmann.
Aiwanger also did not rule out financing through new debt. “We will then discuss whether we should touch the debt brake, whether we should cut corners on other projects, whether we should come up with new financing options. Whatever,” said the Bavarian.
Braun warns against permanent debt levels
The chairman of the budget committee in the Bundestag, Helge Braun (CDU), had previously warned the traffic light coalition against permanently relying on a debt-financed policy. After the Federal Constitutional Court’s budget ruling, she had to make it clear that she had “promised people more than is currently possible,” said Braun in a joint statement Morning magazine from ARD and ZDF.
If the debt brake is suspended too often, it will “break down in the long term”. He rejected a reform of the debt brake: it is important “because it gives future generations room for maneuver.”
Klingbeil calls for certainty in energy prices
Yesterday evening, SPD leader Lars Klingbeil criticized FDP leader and Finance Minister Christian Lindner on the ARD program “Anne Will” for his announcement of an early end to the price caps for electricity and gas: “Unilaterally announcing the end without us working together discussed, it doesn’t work that way.” The SPD wants there to be security if prices shoot up.
The Ministry of Finance does not see any lack of agreement. Lindner said on Friday that the government price caps for electricity and gas would expire at the end of the year and not at the end of March, as was last planned. “We shouldn’t have this difficult debate in the next few weeks about individual announcements from individual ministers,” warned Klingbeil. “We now need an overall package. We have to work on it, and when it’s finished, it can be announced.”
The price brakes are financed from the Economic Stabilization Fund. The SPD politician said it was completely clear that this would have to expire at the end of the year after the ruling. This meant that the price brakes automatically expired. However, the coalition made up of the SPD, Greens and FDP did not discuss how uncertainties in energy costs would be hedged afterwards.
The Ministry of Finance has since responded to this criticism. “Lindner simply expressed a necessity following the ruling of the Constitutional Court. There has been agreement on everything with the Chancellor and Economics Minister for days,” said ministry circles. “The internal coordination between the SPD and the Greens can possibly be improved.”
The government wants to prepare the 2024 budget by the end of the year
According to government spokesman Steffen Hebestreit, the coalition also wants to draw up the 2024 budget this year. If this is no longer possible, the budget should be passed in mid-January.
The Federal Cabinet wants to adopt the supplementary budget for 2023 today using the so-called circulation procedure. The justification for the renewed suspension of the debt brake in 2023 will be based on the justification for 2022, said Hebestreit. It remained unclear whether other reasons were given.
Söder calls for new elections
Bavaria’s Prime Minister Markus Söder called for new elections in June 2024 in view of the budget crisis: “The question is whether the traffic light still has the power to overcome the current problems,” said the CSU leader. “I don’t believe it anymore. I believe that the centrifugal forces are great.” Söder spoke out in favor of a new edition of the grand coalition.
In view of the ongoing debate in the Union about a possible change to the debt brake, he expressed his opposition: “The leaders of the CSU and CDU agree on this.” A number of CDU prime ministers and politicians had previously called for changes to the instrument anchored in the Basic Law.
Reallocation for unconstitutional explained
The Federal Constitutional Court had declared a reallocation of 60 billion euros in the 2021 budget to be unconstitutional. The federal government is not allowed to use funds intended to combat the Corona crisis for climate protection.
This could have a major impact on the climate and transformation fund. For example, the fund is intended to finance programs for more climate protection, for the establishment of future technologies and the development towards a climate-neutral economy.
Martin Polansky, ARD Berlin, tagesschau, November 27th, 2023 12:00 p.m