Federal finances
“Shutdown” like in the USA also possible for German households?
In the USA there is a risk of a “shutdown” if the parties cannot agree on a budget. And in Germany? The Basic Law provides the answer. photo
© Monika Skolimowska/dpa-Zentralbild/dpa
The federal government is looking for a way out of the budget crisis. Does it possibly have to fear a standstill in government business? The answer comes from a look at the Basic Law.
When the US government runs out of money again, the term “government shutdown” dominates the headlines – this refers to the standstill of government business. According to the ruling of the Federal Constitutional Court, such a scenario could also occur Threatening Germany? No.
What is a “shutdown”? If members of Congress do not reach an agreement on the US budget, offices and authorities, among other things, will remain closed. Only essential areas such as the federal police or secret services continue to work.
How is Germany different? While the wrangling in the USA repeats itself every year, mainly due to party politics – most recently under President Joe Biden – such an emergency is not possible in this country. In Germany, the Basic Law (Article 111) provides for the state to remain fully functional even if the budget law is not passed on time. This is regulated by a so-called provisional budget.
The federal government is authorized to make all expenditure necessary to maintain administration and fulfill legal obligations until the budget law is promulgated. In practice, the Federal Ministry of Finance can authorize the specialist departments to implement the budget draft that has not yet been approved up to a certain percentage as an upper limit. The US government does not have this authority in this form.