finance
Lindner: No exception to defense spending
German soldiers of the Enhanced Forward Presence (eFP) Battle Group in full gear. photo
© Monika Skolimowska/dpa-Zentralbild/dpa
In the context of the tense security policy situation, the Federal Minister of Finance commented on defense spending.
Despite the tense security policy situation, Federal Finance Minister Christian Lindner is against special budgetary treatment of defense spending.
“Certainly we need to improve our security capabilities in Europe,” the FDP politician told the German Press Agency and other members of the European Newsroom in Brussels in an interview. The geopolitical situation has changed completely. “However, I am not yet convinced that we need exemptions from the fiscal rules for defense spending.” The EU debt rules impose upper limits on the states and are currently being reformed. Germany demands comparatively strict regulations.
Lindner: “High debts lead to instability”
Lindner said he was skeptical about exempting military spending from the rules because capital markets don’t differentiate between motives for taking on debt: “For capital markets, debt equals debt, and excessive debt leads to instability.” They may have fueled inflation and reduced the sustainability of public finances.
In Germany, all ministries with the exception of the Ministry of Defense are said to have to make savings in the current preparation of the federal budget for 2024. Lindner informed the ministries at the end of May how much money should be available to them in the coming year. However, talks are currently still being held in which Chancellor Olaf Scholz is also involved.