Status: 11/10/2021 2:41 p.m.
The Federal Audit Office looks at the state budget with great concern. The mountain of debt threatens to rise to almost 1.5 trillion euros by the end of 2022 – 50 percent more than before the Corona crisis.
The Court of Auditors sees the federal government’s finances “in critical condition” after the Corona crisis – despite years of black zero in the budget. The federal government has exhausted its financial leeway. The mountain of debt threatens to rise to almost 1.5 trillion euros by the end of 2022, according to an analysis that the Court of Auditors sent to the Bundestag. That is 50 percent more than before the Corona crisis.
Hoping for better times is not enough
“Less than two years of the corona pandemic were enough to weaken federal finances significantly. Now it is important to turn things around as quickly as possible,” the report says.
For consolidation it will not be enough to wait and hope for better economic times. Although this worked after the financial crisis, it will not repeat itself in view of the challenges such as climate change and digitization.
“There is no money for everything”
In order to make the finances sustainable again, a new federal government must act quickly. The Court of Auditors criticized the fact that there were still no solution concepts for many challenges – such as for the aging of society. It is necessary to set priorities firmly in important future fields such as climate protection, the energy transition, digitization and education. Funding programs would have to be scrutinized, spending more closely scrutinized and climate-damaging subsidies dismantled. “Because there is not money for everything,” warned Court of Auditors Kay Scheller.
No loosening of the debt brake
At the same time he warned: “A relaxation or even abolition of the debt rule would be the wrong way and a capitulation to the problems without having discussed solutions at all.” Ancillary budgets such as funds or special purpose vehicles are always opaque. Instead, a “courageous and clear consolidation course” must be followed.
The recommendations of the Court of Auditors come right in the middle of the hot phase of coalition negotiations between the SPD, Greens and FDP. The question of financing is considered to be one of the most difficult topics in the talks.