The discussions on the federal budget are entering the decisive phase: the budget committee meets for the very, very long last meeting – the day after the spectacular Karlsruhe judgment.
Even in normal years, the cleanup session is a mammoth session that can last until the early hours of the morning. This year, the traffic light coalition will have 60 billion euros less money available for climate investments following the Karlsruhe decision. The reallocation of Corona debts for other purposes violates the debt brake of the Basic Law – according to the ruling of the Federal Constitutional Court, which was appealed by the CDU/CSU parliamentary group.
Opposition wanted to postpone meeting
The opposition has therefore called for the meeting to be postponed. “If we were in the place of the federal government, we would stop the budget process and draw up a new budget,” says Union parliamentary group leader Friedrich Merz.
Gesine Lötzsch, budget politician for the Left, even speaks of “making fun of Parliament and the Budget Committee” if they want to meet as if nothing had happened. Ultimately, central projects of the traffic light coalition could no longer be financed via the Climate and Transformation Fund (KTF).
Peter Boehringer (AfD) also believes it is impossible to take the consequences of the Karlsruhe decision into account in budget discussions within a few hours.
Traffic lights separate the budget and the climate fund
SPD budget politician Dennis Rohde disagrees. He makes a distinction between the regular household and the KTF. Karlsruhe declared 60 billion that had been earmarked for this fund to be null and void – which meant that the KTF’s economic plan had to be discussed again. The regular federal budget could be passed without any problems, otherwise the budget could not come into force in time at the beginning of January.
As a concession to the opposition, there will be a hearing next Tuesday on the consequences of the Karlsruhe ruling. The committee’s official decision on the 2024 budget should also be postponed and made in a digital meeting on November 23rd – in time for the following budget week in plenary session.
Consequences for other special funds?
For Christian Haase (CDU) that is not enough. He points to the possible effects of the Federal Constitutional Court’s decision on other debt-financed special funds such as the Economic Stabilization Fund, from which the energy price caps in particular are paid: “You first have to evaluate a judgment like this – that is also what respect for the Federal Constitutional Court demands.” Ultimately, there must be an end to debt-financed shadow households, according to Haase’s assessment.
For the traffic light partners, however, there is another acute question: How should tasks be financed for which the climate and transformation fund now lacks funds? Green Party budgetary Sven-Christian Kindler, for example, points to the financing of railway investments, the climate-neutral conversion of the steel industry, the renovation of buildings or support for the construction industry. The federal government and parliament would work together to develop a concrete plan as to what the financing could look like.
In this respect, Otto Fricke (FDP) also speaks of a certain interaction between the climate and transformation fund and the budget.
At least ten billion euros are missing
At least ten billion euros are still missing from the regular budget, as can be seen from the documents for the adjustment meeting. Finally, further expenses were added to support Ukraine and citizens’ money. Losses of income are, in turn, associated with the announced reduction in electricity tax. And some would like to see the continuation of the reduced VAT rate in the catering industry.
FDP householder Karsten Klein warns: After the decision from Karlsruhe, it must be clear to everyone that the situation for the household has not become any easier.
Coffee, glucose, a trip out into the fresh air
But one thing is also clear: in the final consultations, all departments will try again to secure funding for themselves. That’s precisely why, says Jamila Schäfer from the Greens, the adjustment meeting is one of the most important meetings of the Budget Committee, “because we can implement our ideas about how the budget can be made even better.” Ultimately, budget law is considered the royal law of Parliament.
This includes that on this day all ministers must answer questions from the householders. Some also do it at night, as the session can last until the early morning.
What requires good concentration and also a few stimulants: lots of coffee, says Claudia Raffelhüschen (FDP). Jamila Schäfer brings glucose with her. Christian Haase swears by short trips out into the fresh air. And Dennis Rohde expects that the combination of coffee and adrenaline will keep you awake in the end.
In any case, the results of the adjustment meeting can be expected on Friday morning.