coalition
Habeck warns against canceling the budget compromise
Vice Chancellor Robert Habeck defends the budget compromise. photo
© Kay Nietfeld/dpa
Individual measures for the budget compromise are also hotly disputed within the coalition. This is what Vice Chancellor Habeck is now calling on.
Federal Minister of Economics Robert Habeck (Greens) has warned against canceling the coalition leaders’ compromise on the austerity package.
Habeck told the dpa: “If individual struts are now pulled out without inserting new ones, the overall solution collapses. This means that anyone who wants changes in one place must offer coordinated counter-financing that is viable for all sides. But we cannot not to give an answer because the budget has to be done.”
Planned cuts to the federal budget had sparked violent protests. On Sunday, the FDP parliamentary group in the Bundestag announced a veto against the traffic light leaders’ plans to abolish tax breaks for farmers.
On Wednesday, Habeck, Chancellor Olaf Scholz (SPD) and Finance Minister Christian Lindner (FDP) agreed on how billions in holes in the federal budget for 2024 and in the climate and transformation fund should be plugged following a ruling by the Federal Constitutional Court.
Habeck: Package demands something from everyone
“The Chancellor, the Finance Minister and I have been negotiating intensively for three weeks to develop an austerity package that, as an overall solution, makes further investments possible, secures tens of thousands of jobs, preserves relief and maintains social balance,” said Habeck. He spoke of a package that implements the Constitutional Court ruling, was put together on the basis of existing rules and demands something from all sides. “Cuts are hard on people and I would have liked to have avoided it.” He can understand everyone affected who is now disappointed.
Habeck’s appeal to the traffic lights
Habeck continued: “Since there are now calls in the political sphere not to make cuts in certain areas, I have to say: As politicians, we are obliged to make an overall solution possible. What is not possible for politicians is to accept responsibility to withdraw and only say where no savings should be made. I would also like to promote e-mobility with the environmental bonus for longer, be able to use more money for the solar industry or cap the costs of network fees. But I know that others have different ideas is important and that every cut means hardship. That’s why I defend the compromise that it is.”
For example, the stop to the state purchase bonus for electric cars at the end of Sunday is also controversial. Three deputy SPD parliamentary group leaders had said that the funding stop announced at short notice by the Ministry of Economics on Saturday was “extremely unfortunate”. They had asked Habeck to organize a more reliable transition.
Habeck for reform of the debt brake
The Constitutional Court ruling as a result of the Union lawsuit means that the coalition now has to save large sums of billions, said Habeck. “And at the same time we should debate how we can improve our rules for investments in the future. It has long been known that I believe the rules of the debt brake as they stand are out of date. Germany must invest massively in order to compete globally “To keep up with future technologies, and the transition must be socially just.”