Status: 03/16/2022 10:53 a.m
Finance Minister Lindner wants to take on almost 200 billion euros in new debt to deal with the Corona crisis and the special assets of the Bundeswehr. The cabinet approved the plans – but the money might not be enough.
The cabinet has approved Finance Minister Christian Lindner’s budget plans. In the current year, another 99.7 billion euros in new debt are to be taken on in the core budget in order to counter the consequences of the Corona crisis.
Further debts possible – because of the Ukraine war
However, there could be more debt due to the war in Ukraine: Lindner has already announced that there will be a supplementary budget to mitigate the consequences of the war in Ukraine. This could then be paid for further relief for the citizens, for example because of the high energy prices.
This is the third year in a row that the debt brake laid down in the Basic Law has been torn down. As early as next year, Lindner only wants to take out new loans of 7.5 billion euros and thus comply with the debt brake again.
Special fund for the Bundeswehr launched
The cabinet also approved the EUR 100 billion special fund to strengthen the Bundeswehr.
It is planned to change the Basic Law for this, for which the traffic light coalition in the Bundestag needs a two-thirds majority and thus also votes from the opposition. According to the draft bill, the Basic Law should state that the special fund serves to “strengthen alliance and defense capabilities”. These loans are to be exempted from the debt brake.
It is still controversial which projects should be paid for
According to the draft, more precise specifications for the use of the funds are not to be made in the Basic Law. A business plan with specific projects is to be attached to another law establishing the special fund.
It is still controversial in the federal government for which projects the special pot should be used. Larger investments with a volume of more than 25 million euros will still have to be approved by the budget committee of the Bundestag before they can be initiated.
Union does not want to support special funds like this
The amendment to the Basic Law required for the special fund could still pose problems for the federal government, because the votes of the government factions alone are not enough for this. For the necessary two-thirds majority in the Bundestag to amend the Basic Law, MPs from the opposition would also have to agree.
The Union in the Bundestag has now announced that it will not support the amendment to the Basic Law in the form now proposed. “The traffic light draft for setting up the Bundeswehr special fund in the Basic Law cannot be approved by the Union,” said housekeeper Mathias Middelberg.
It must be clear that the 100 billion euros would go entirely to the Bundeswehr and its equipment. “The formulation presented ‘to strengthen alliance and defense capability’ also allows for other uses,” said Middelberg. “We don’t give a clean bill of health for 100 billion euros in additional spending without clearly specifying how the funds will be used.”
In addition, the Union faction also wants to be involved in the decisions on what the money is spent on. An accompanying committee for the use of the special fund, which decides with a qualified majority, is conceivable.